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May 18, 2021In force

Decree 11-2021

Congreso Nacional

  • Decree: 11-2021
  • Published: May 18, 2021
  • Issuing body: Congreso Nacional
  • Gazette: 35,602
  • Category: Administrative

Summary

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This decree speeds up the reconstruction of road infrastructure damaged by hurricanes ETA and IOTA by allowing direct contracting without bidding, using shared databases of companies, and implementing fast payments to contractors within a maximum of 10 days. It benefits builders, consultants, and accelerates economic recovery through infrastructure projects.

Considerations

Whereas the Constitution of the Republic establishes that "The State promotes economic and social development, which must be subject to strategic planning".

Whereas in the year 2020 Honduras was the hardest hit country in the region, experiencing a decline in the national Gross Domestic Product (GDP) of -9.7%, since in addition to facing the impact of the health emergency from the Coronavirus pandemic, the country suffered the ravages of nature, experiencing the largest economic impact in the country's history.

Whereas the report from the Economic Commission for Latin America and the Caribbean (ECLAC) presented to the government records Forty-Six Billion Lempiras (L.46,000,000,000.00) as the impact of the storms; while the economic damage generated by the COVID-19 pandemic according to estimates from the Central Bank of Honduras (BCH) exceeds Fifty-Five Billion Lempiras (L.55,000,000,000.00).

Whereas because the Honduran territory was severely battered by tropical phenomena called ETA and IOTA, leaving large amounts of rainfall nationwide in their wake, serious damage was caused to road infrastructure, schools, hospital infrastructure, water and sanitation, and the country's agricultural sector, as well as direct impacts to residents in highly vulnerable areas, making it necessary to immediately construct important infrastructure works for flood control and other mitigation works in the departments and regions of the country affected by these natural phenomena, for which legal provisions and extraordinary mechanisms must be adopted to enable swift, efficient and transparent execution for the process of national rehabilitation and reconstruction.

Whereas it is necessary to maximize the capacity of national construction and consulting companies to be able to execute infrastructure works as soon as possible due to the proximity of the rainy season and the importance of economic reactivation through the implementation of works that generate the circulation of fresh resources as a consequence of massive contracting of labor, making it necessary to expedite the payment processes for contractors and consultants.

Whereas road infrastructure projects, whether for construction, rehabilitation, improvement or routine and periodic maintenance of the country's road network, represent an essential factor for the accelerated and equitable development of the population and for the generation of unskilled labor employment, with the following projects pending execution with priority status for the year 2021, among others: 1) Improvement of Access and Complementary Works to the Municipality of La Ceiba, Department of Atlántida, Including Street 8 (L= 8.85 Km), 2 grade separation passes, 3 New Bridges including 1 over the Danto River (L = 120 m) and Paving of Complementary Streets; 2) Improvement of the existing asphalt pavement structure, Cantarranas -Talanga (19 Km); 3) Paving of highway section with hydraulic concrete pavement structure, Gracias - La Campa (16 Km); 4) Paving of unpaved road network in Valle Department, Guacirope - San Francisco de Coray section (18 Km); El Carreto - Cubulero - Sonora (16.07 Km); 5) Consulting for Studies and Designs using the LIDAR system for the improvement of flood control in the Sula Valley / Aguán Valley / Los Amates, Department of Cortés, Colón and Valle; 6) Contracting of Consulting Services for Final Studies and Designs based on Deflectometry, for the Pavement Road Network Maintenance System, in the Departments of Comayagua, Intibucá, Copán, La Paz, Colón and Cortés, with a length of 285.03 Km; 7) Paving of 10 Km with Hydraulic Concrete as Phase I, Route 92, El Rodeo - San Luis; Phase I (Km 10); 8) Paving of 13.05 Km with Hydraulic Concrete, S085 - Linaca (13.05 Km); 9) Paving of 9.30 Km with Hydraulic Concrete, Rebalsito - San José (9.30 Km); 10) Paving of 13.05 Km with Hydraulic Concrete, Route CA-4 - Dulce Nombre (6.87 KM); 11) Study and Design for the Paving of Talanga Boulevard, Francisco Morazán; 12) Periodic Maintenance of National Paved and Unpaved Road Network including the Coffee Productive Sectors identified and prioritized by the Coffee Fund.

Whereas Investment Strategy of Honduras (INVEST-Honduras) is a management unit (planning, administration and implementation) of strategic projects and programs for the country's development attached to the General Coordination of Government, whose purpose is the efficient and transparent management of development projects and programs with international and national funds under an efficient and modern management model.

Whereas the Executive Branch, through its competent departments, must have the appropriate logistics and legal powers to simplify and make more efficient the activity of providing infrastructure at the national level.

Whereas the Commercial Code establishes in its Article 1033 that "The trust is a legal transaction by virtue of which the bank authorized to operate as trustee is attributed the full ownership of certain assets, with the limitation, of an obligatory nature, to perform only those acts required for the fulfillment of the lawful and specific purpose to which they are destined"; likewise Article 1035 states that "The trust implies the transfer of rights or the transfer of ownership of assets in favor of the trustee", and likewise Article 1036 states that "Against third parties, the trustee shall be considered the owner of the rights or assets entrusted".

Whereas on December 3, 2020, the National Congress through Legislative Decree No. 161-2020 and published in the Official Gazette "La Gaceta" dated December 9 of the same year, approved the Four-Party Agreement executed between Strategic Investment of Honduras (INVEST-Honduras), Ministry of State in the Office of Finance (SEFIN), Ministry of State in the Office of Transparency and Banco de América Central Honduras, S.A. (BAC-CREDOMATIC) in its capacity as Trustee, dated December 1, 2020. According to said Decree the financial facilities on the part of the Trustee shall be applied TO THE INFRASTRUCTURE WORKS DETERMINED BY INVEST-HONDURAS/MCA-HONDURAS, AS THE ENTITY RESPONSIBLE FOR THE STRUCTURING, EXECUTION AND SUPERVISION OF THE ROAD INFRASTRUCTURE PROJECTS TO BE FINANCED BY CREDITS, WHETHER SHORT, MEDIUM AND/OR LONG-TERM CREDITS OBTAINED BY THE TRUST.

Whereas Article 205 Attribution 1) of the Constitution of the Republic establishes that it is the prerogative of the National Congress: Create, decree, interpret, reform and repeal laws.

Articles

Article 1.-

To exempt during the year 2021, projects related to the "ROAD INFRASTRUCTURE TRUST" referenced in the FOUR-PARTY Agreement, dated December 1, 2020, approved by Legislative Decree No. 161-2020, as well as projects financed with other sources of financing related to the reconstruction of infrastructure works that were damaged as a result of tropical storms ETA and IOTA, from the Priority Notice that in accordance with budget legislation must be issued by the State Secretary in the Office of Finance (SEFIN), through the General Directorate of Public Investments.

Article 2.-

All public entities executing infrastructure works are authorized to exchange the database of pre-qualified companies in order to shorten timeframes and processes for the acquisition and awarding of such works. Additionally, they may use the database of contractors registered with the Normative Office for State Contracting and Procurement (ONCAE) for this purpose.

Article 3.-

By virtue of the damage caused by tropical storms ETA and IOTA and the pressing need for economic reactivation in Honduras, Infrastructure projects on the primary, secondary, tertiary, and urban road networks and minor infrastructure, including their design, construction, supervision, verification, and audit services, and those of national interest financed by the Road Infrastructure Trust or other sources of financing, shall be executed through direct contracting procedures. Contracting processes must be duly audited internally and externally, as well as accompanied by verification firms; this audit and verification process shall be financed with funds from the Road Infrastructure Trust in the case of projects executed with such Trust's funds; in projects whose execution is financed with sources other than said Trust, such sources must include financing for the audit and verification processes of those projects. The contracting referenced in this paragraph must respect the principles of Transparency in its formulation, execution, accountability, social oversight, citizen participation, maximum disclosure and publicity in acts and contracts that by their nature are of public interest. In application of Articles 1033, 1035, 1036, and 1037 of the Commercial Code, contracts executed within the framework of the Road Infrastructure Trust referenced in Decree No. 161-2020, that extend beyond the present government period shall not require subsequent approval by the National Congress for their execution.

Article 4.-

No later than thirty (30) days after the entry into force of this Decree, public sector institutions that include in their 2021 budget appropriations with sources other than national funds, or that have resources allocated in trusts with any source of financing, must implement expedited payment procedures for contractors by monthly work estimates and for consultants by monthly services for design and supervision of works. The expedited procedures referred to in the previous paragraph must allow payments to contractors and consultants within a maximum period of ten (10) calendar days of at least ninety percent (90%) of the amount earned in the period and the remaining ten percent (10%) no later than fifteen (15) days thereafter, and in the case of advances one hundred percent (100%) within the maximum period of ten (10) days. The timeframes indicated in the preceding paragraph are established from the date of submission of billing documents to the corresponding executing institutions, approved by the respective supervisor in the case of contractors; and approved by the project coordinator in the case of consultants. Final construction payment for a project is excepted from these timeframes.

Article 5.-

This Decree shall enter into force as of the date of its publication in the Official Newspaper "La Gaceta". Done in the city of Tegucigalpa, municipality of the Central District, in the Session held by the National Congress in Virtual manner, on the twenty-second day of the month of April of two thousand twenty-one. MARIO ALONSO PÉREZ LÓPEZ PRESIDENT JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY SALVADOR VALERIANO PINEDA SECRETARY To the Executive Branch. Therefore: Let it be executed. Tegucigalpa, M.D.C., May 4, 2021 JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE STATE SECRETARY IN THE OFFICE OF FINANCE MARCO ANTONIO MIDENCE MILLA

Notes

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