FY2021 Year 4 Quarter 1 Performance and Financial Report

The activity aims to contribute to fighting corruption and impunity by building strong accountable institutions, improving procurement, and strengthening public expenditure management. The purpose of the activity is to foster transparency and accountability and implement anti-corruption legal frameworks, thereby improving the business-enabling climate in Honduras to promote a level playing field for investment. The activity has undergone contract modifications to address corruption issues and promote transparency in the use of COVID-19 dedicated resources. A new contract end date of June 30, 2021, and US$ 700,000 in incremental funding were included in contract modification No. 7 issued on July 6, 2020. An additional US$ 300,000 was included in Modification No 8 issued on October 9, 2020. The Year 4 annual work plan covers prioritized activities that can be implemented in line with these modifications, and within the total contract budget of US$ 9,131,576.94. The activity consists of three components: Component 1, which aims to improve transparency and effectiveness of public spending; Component 2, which seeks to institutionalize public-private dialogue on transparency, fiscal policy, and anti-corruption issues; and Component 3, which focuses on steps taken to professionalize the civil service. The geographic coverage of the activity is Honduras, with a focus on the national government. The sector context in Honduras is marked by the COVID-19 pandemic, which has had a significant impact on the country's healthcare system. As of the end of the first quarter of 2021, Honduras had reported near 188,000 cases and 4,558 deaths from COVID-19. The country has received vaccines from the Pan-American Health Organization (PAHO) and the World Health Organization (WHO), but experts have called for transparency in the purchase and use of vaccines. The activity has made progress in improving transparency and accountability in public spending. The implementation of the activity has led to the establishment of a new contract end date and the inclusion of incremental funding to address corruption issues and promote transparency in the use of COVID-19 dedicated resources. The activity has also made progress in institutionalizing public-private dialogue on transparency, fiscal policy, and anti-corruption issues. The activity has faced challenges in implementing its components, particularly in Component 3, which focuses on steps taken to professionalize the civil service. The activity has also faced challenges in addressing corruption issues and promoting transparency in the use of COVID-19 dedicated resources. Despite these challenges, the activity has made significant progress in improving transparency and accountability in public spending and institutionalizing public-private dialogue on transparency, fiscal policy, and anti-corruption issues. The activity has collaborated with various stakeholders, including the Government of Honduras, civil society organizations, and the private sector. The activity has also received support from USAID and other international partners. The activity has made significant progress in improving the business-enabling climate in Honduras and promoting a level playing field for investment. The activity has implemented various interventions to improve transparency and accountability in public spending, including the establishment of a new contract end date and the inclusion of incremental funding to address corruption issues and promote transparency in the use of COVID-19 dedicated resources. The activity has also implemented interventions to institutionalize public-private dialogue on transparency, fiscal policy, and anti-corruption issues, including the establishment of a public-private dialogue platform. The activity has made significant progress in improving the business-enabling climate in Honduras and promoting a level playing field for investment. The activity has also made significant progress in improving transparency and accountability in public spending and institutionalizing public-private dialogue on transparency, fiscal policy, and anti-corruption issues.