15. Olancho

“Feasible” and “Prefeasible” Projects are highlighted in yellow.

A.1. Agribusiness (Industrial Crops)

AGR102: Jalapeño Pepper Crop and Exportation

Description: The idea is to take advantage of the existing jalapeño pepper exports market to Central America, Mexico, USA, and Europe. The project foresees during the first year a projected production of 80 hectares, with an average production of 110,000.00 pounds per hectare, for a total of 8,800,000 pounds a year. To market this product, there is already a vegetable processing and packaging plant. The proposal to the investors is to enter into a co-investment system to increase the production to at least 80 Ha per year, entering into markets as the United States and Mexico, and reaching a total of 400 hectares of crops in 5 years; and, the incorporation of work capital for processing, packaging and product shipping expenses.

AGR104: Extraction and Commercialization of African Palm Oil

Description: The project includes the installation of five (5) palm oil extraction plants; with a capacity of 15 MT per hour of fresh fruit each, with an integrated line of palm kernel oil extraction capacity of 30 MT per day. Conveniently, the plan is that the plants will be installed in the areas of higher palm oil production in the country where each plant can supply about 5,000 hectares of palm with yields of 15 MT of fresh fruit per year. Occasionally there may be a need to promote the modernization of existing areas and/or planting of new areas to ensure supply of high quality raw material.

AGR108: Agro Industrial Processing of Corn into Flour for Human Consumption

Description: Honduras white corn production for human consumption is 590,000 MT per year; however, to satisfy the demand of corn flour, it has to import 70,000 MT of corn flour, equivalent to US$ 30.0 million. In addition, there is the potential of the Central American market (40.0 million consumers of corn).

Undoubtedly, it opens the opportunity to build at least 7 agro industrial plants to process corn into flour for human consumption, with a strategic location in the convergence zones of the main corn producing zones in Honduras. Thus creating the capacity to process 252.000 metric tons of corn a year. Occasionally it shall be necessary to stimulate the modernization of the areas that are not yet modernized, to improve the quality of the grain and increase throughput, ensuring the supply of high quality raw material.

AGR112: Certified Transgenic Corn Seed Production

Description: For its part, Honduras is the only Central American country that has the legal bases for the production of GMO. Considering this potential, the project proposes the production of certified seeds for local production of GMOs and for exporting to countries currently producing them. There is potentially the opportunity to dedicate 5.000 hectare for planting corn seed, in association with medium-sized producers, to introduce technology production, or to offer a land lease system and so the investors can maintain their independence.

For this project, it is necessary to install a seed sorting and packing plant for export purposes, with a processing capacity of 20,000 MT per year.

AGR116:  Production and Commercialization of Cocoa in Honduras

Description: The project consists of growing 150 manzanas of high quality cocoa. This is a project with excellent profitability and social projection, as 50% of the total production is industrialized, adding value; while the remaining 50% is exported in gold grain and this way, it will generate currency for the country and yield and investment for 656 farmers directly and indirectly.

AGR122: Plantain Production and Exportation in Honduras

Description: Building on existing comparative advantages, the project proposes the installation of a processing and packaging plant with the capacity to receive 25,000 MT of fresh fruit per year, linked to a technical production system of 700 hectares of plantain that will assure the supply of raw material. There is a shortfall in the supply of plantain for local market processing as well as good for opportunities in the regional market. In 2005, El Salvador imported 55.765 MT of plantains valued at U.S. $ 7.9 million (CREE / CIAT, 2006). This volume is equivalent to a production of 1.533 hectares with an average yield of 36 MT / Ha.  U.S. imports 50% of the volume of plantains sold worldwide: 269.000 MT (U.S. $ 100 million annually).

AGR126: Pine Nut Crop Project in San Esteban, Olancho

Description: This project aims to develop in the Department of Olancho, the Municipality of San Esteban, the production of 5,000 hectares of pine nuts for biofuel production, that is approximately 8,000,000 gallons of biodiesel, and this way ensure the availability of fuels in the medium term.

A.2. Agribusiness (Animal Production)

AGR206: Tilapia Culture to Export Fresh Filets

Description: The project proposes to initially install 50 hectare of tilapia production in ponds downstream from the site of installation of the curtains of one of the dams, to derive through the large capacity tubes and drive channels, the necessary water from the discharges of this dam. This will contribute considerable to produce in an intensive system, 70 tons of fresh tilapia fillets per year. The installation of the processing plant (to remove bones and guts), which capacity should be considered as an expansion project. Eventually, after all the relevant studies have been conducted, it will be possible to expand production using also floating cages.

 There are 5 hydroelectric projects to be built in different parts of the country, of which two of them are closer. The exploitation potential of this product both in cages and ponds downstream of discharges from the dam will be at least 1,000 ha of water surface.

The U.S. market accounts for imports of U.S. $ 196 million of fresh tilapia and $ 537 million frozen tilapia.

AGR208: Bovine Genetics Training Center and Laboratory

Description: This project is contemplated to meet the need of genetic improvement in dairy and beef cattle due to the demands of national and international markets, this center focuses on obtaining the best genetic material from different races that would favor domestic producers and the external demand. Likewise, training services will be provided, as well as artificial insemination, and genetic material will be sold as frozen or on foot. The main center will be in Olancho, and the other ones will be regional offices affiliated to the same. The genetic material will be held in this first center.

AGR210: Milk Processing Plant

Description: The project is to establish a milk processing plant in order to export dairy products to North America, to cover part of the nostalgic products market. The proposal is to locate a site to construct the building, so as to comply with all environmental health requirements of the national and foreign markets. Among the products to be produced are: fluid milk, butter, fresh cheese, dried cheese, yogurt, ice cream and cheese. The plant will comprise of the following sections: milk reception, storage, pasteurization, processing and quality control, and will also have a system of wastewater treatment.

A.3. Agribusiness (Irrigation Water Supply)

AGR306: Irrigation Water Supply Network, Filtered and Pressurized 3 and 4 in the Valley of Guayape (

Description: The introduction of irrigation in areas 3 and 4 of the valley will be performed by exploiting the aquifers in an area of ​​3 to 5 kms. wide, at depths of 30 to 75 m. The project provides an integrated production system from products directed to both domestic and international markets, which requires the establishment of irrigation facilities in 4,000 high quality hectares, as well as the dissemination of modern production technologies by providing farmers with timely technical and financial assistance.

 The investor can choose to build the necessary infrastructure, including waterworks and roads in the irrigation area, and if interested, participate in the development of technical services required in the agricultural production and marketing production stages. Investment in the irrigation system would be recovered through the sale of water to farmers who would use this service. The Government is interested in finding deals to invest in the project, which can cover only the construction phase of the system, or the development of the entire project, i.e., including the phases of production and marketing of agricultural goods.

A.4. Agribusiness (Energy-Oriented Crops)

AGR401: Production of biofuels with Pine Nuts Crops

Description: This project aims to develop in the Department of Olancho, the Municipality of San Esteban, the production of 5,000 hectares of pine nuts for biofuel production, which is approximately 8,000,000 liters of biodiesel. Additionally, the proposal is to build a biodiesel plant equipped to produce 60.000 liters a day.

AGR402: Production of biofuels with Pine Nuts Crops

Descripción: La inversión está dirigida a la instalación de plantas procesadoras de materias primas oleaginosas no agroalimentarias, para la elaboración de biocombustibles. El equipo necesario para la operación de estas pequeñas plantas tienen un costo estimado de unos US $ 600,000.00 con lo cual se puede procesar unos 187,200 galones anuales, lo que significa un producción primaria de unas 230 hectáreas de piñón (Jatropha curcas) que son perfectamente identificables en diferentes puntos de Honduras. El precio de venta del galón de biocombustible de piñón en Honduras es de US $ 3.40, lo que se traduciría en ventas de alrededor de US $ 636,480.00 anuales. El costo de inversión de una hectárea de piñón en Honduras es de alrededor de US $ 630.00 el primer año, posteriormente su mantenimiento es de US $ 342.00 anuales, para establecer una integración vertical para asegurar el flujo constante de materia prima.

B.1. Renewable Energy (Expansion of Secondary Stations)

ENE108: Expansion Substations of Juticalpa 230/34.5 kW and Reguleto 230/138 kW, Construction of 307

Description: The Project consists of expanding the Juticalpa and Reguleto substations in 230 kW, to receive the new line that initiates in the new Amarateca Substation and ending in the existing Reguleto Substation, as well of increasing the transformation capacity of these Substations.  This new line will allow generating output though this line.

B.3. Renewable Energy (Hydroelectric)

ENE304: HydroElectric Proyect Patuca IIA (La Tarrosa)

Description: This project is located in the same region of another project in development called Valencia; therefore it constitutes a cascade development that starts upstream with the Patuca 3 Project (approximately at a 60 Km. distance). It has been estimated that the location is between 51 Km from the Nueva Palestina community and where the elevation of the Patuca River flow is approximately 200 msnm. It includes the following: a reservoir 69 m high of the RCC with a central outlet controlled by gates, underground machine house, reservoir area of about 20 km², reservoir capacity between 360 and 6000 million of cubic meters. Installed power ranges between 150 and 200 MW with 3 Francis turbines, and the average generation is between 691 and 800 GWh/year. At present, the La Tarrosa project lacks basic information. The existing technical studies are only on evaluation, which correspond to a study on inventories and a multidisciplinary technical visit carried out in 2007, in which for potential sites for the reservoir were identified. It is necessary to conduct the first geology, topography and hydrology field investigations that will constitute the base to define a development scheme. The studies to be conducted are elemental investigations to assess different development schemes and determine the energy potential of each one of them, estimate the quantities and costs at market price and prepare the corresponding economic and financial evaluations to determine the project feasibility.

ENE305: Hydroelelctric Project Patuca IIB (La Valencia)

Description: The Valencia Project is located in the same region and downstream the other project being currently developed, called La Tarrosa in the department of Olancho, in the eastern zone of Honduras, at approximately 205 Km in horizontal distance from Tegucigalpa and about 97 Km of the city of Catacamas. The Project includes: a 105 meters high dam of RCC with a central outlet controlled outlet with sluicegates. Underground machine house. Conduction system, a 140 meter long tunnel and 9.6 meters in width. The average net fall is 74 meters Dam area 45.4 km², dam capacity is 1390 million cubic meters from which 930 of useful dam.  The annual average flow is 270 m³/s, with a regulated flow of 162 m³/s for a 60% regulation. The construction of this project will take approximately five to six years, including the consulting firm contracting. The Valencia Project is a hydroelectric has a hydroelectric use of 270 MW which average output will be 1,337 GWh, with a firm 209 MW firm potential and firm generation of 973 GWh/year, the plant factor will vary between 56% and 65.7 %, and it will be interconnected to a 230 kW line, 160 Km. from the Patuca 3 Project.

B.4. Renewable Energy (Private Biomass Combustion Energy Generation)

ENE402: Energy generated by Energy Crop Plantations

Description: A renewable energy Project based on a biomass plantation.  The biomass fuel will be based on “Bio-G” plants, superior clones of the "Arundo Donax" plant, supplied locally by Galiltec S.A.  The plants will be produced in a plantation owned by the same project, incorporating the production of the same fuel of the power central.  In general, the Project includes two components: a) The agriculture component which is the Bio-G plantation, the concept of plantation is recognized world-wide as “plantation devoted to energy crops”, which will allow a self-supply for the fuel demand of the power central for its operation; and b) The 12 MW power central.  This component will be a turnkey Project through an experience and well recognized contractor. The contractor will assure the full management of the project power central component, including the necessary guarantees to demonstrate a bankable project.

ENE403:  Energy generated by Energy Crop Plantations (35 MW)

Description: A renewable energy Project based on a biomass plantation.  The biomass fuel will be based on “Bio-G” plants, superior clones of the "Arundo Donax" plant, supplied locally by Galiltec S.A.  The plants will be produced in a plantation owned by the same project, incorporating the production of the same fuel of the power central. In general, the Project includes two components: a) The agriculture component which is the Bio-G plantation, the concept of plantation is recognized world-wide as “plantation devoted to energy crops”, which will allow a self-supply for the fuel demand of the power central for its operation; and b) The 35 MW power central.  This component will be a turnkey Project through an experience and well recognized contractor. The contractor will assure the full management of the project of the power central component, including the necessary guarantees to demonstrate a bankable project.

C.1. Forestry (Forest Area Management)

FOR102: National Coniferous Forest Area Management, San Esteban, Olancho

Description: The project involves the management and / or immediate rational use (5 years) of 12.534 hectares of the national conifers forest, through two alternatives: (i) By managing approximately 50% of the area that includes young forests that are still growing, obtaining benefits from intermediate forest activities (thinning, resin extraction, posts, biomass) by adding the use of 6.184 hectares of mature forest suitable for timber sawing, with a standing volume of 371.040 m3, and (ii) by the industrialization of the total volume of the entire area (approximately 1.88 million m  3  ) Creating particle board, paper pulp cardboard and biomass plants for electricity production. This page only considers the alternative No. 1 and it would be a public-private investment in which the state covers 35% of the investment.

FOR104: Combined Forest Management and Development of the Pech Indigenous Groups in the North Region

Description: The purpose of this project is to strengthen the management, conservation and development the mixed forest, aimed at the protection and sustainable use of Sweetgum (Liquidambar Styraciflua) in the Pech Indigenous Communities of the North of Olancho. The project area includes broadleaf and mixed forests in the municipalities of Esquipulas del Norte, La Unión, Jano, Gualaco, San Esteban and Dulce Nombre de Culmí, in the Department of Olancho. The mixed and broadleaf forests area is estimated in 125,000 hectares, with an intervention surface of 100,000 hectares.

C.2. Forestry (Forest Plantations)

FOR204: Teca Tectona Grandis Forest Plantation for Commercial Purposes in the Region of Olancho

Description: This project consists of the establishment of teak wood (Tectona Grandis) commercial plantations in 20,000 hectares located in the Lepaguare Valley, the Catacamas Valley and the Agalta Valley. The specie that will be planted has a high economic value as well as a good adaptability to the climate conditions of the zone, achieving a minimum economic rotation age of 16 years and an annual growth of 6 to 8 cubic meters per hectare.  The sites proposed are flat sites, of easy access to the paved road to the capital of Honduras, Tegucigalpa.  The communities provide labor specialized in reforestation tasks, which will facilitate the establishment, rational use and commercialization of the products from the plantation.  The modality proposed to establish this plantation is co-investment, where the landowners, in these three important valleys in the Department of Olancho make the land available, and the investor the capital, equipment and machinery for the investment.

FOR209: Forest Plantations in Association with Cocoa that will be marketed in the National and Inter

Description: The investment project consists of promoting the establishment of forest plantations such as the black laurel (Cordia Megalantha), Mahogany (Swietenia Macrophylla) and Cedar (Oderata Cedrella) in association with cocoa (Theobroma cacao), in a surface of 1,000 hectares in the buffer zone of the Patuca National Park and the Asangni Tawahka Biosphere Reserve.  In the area of the Patuca National Park zones have been identified for forest and cocoa plantations, however, there are other areas to increase the plantation, which are currently used as grazing land.