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Latin America Investment News on Viva Tropical

San Pedro Sula Continues to Slide into Decay

Article Summary:

The economic capital of Honduras has become a city in decay, both economically and its infrastructure, while the continued plague of insecurity is scaring away the necessary investors to jump start the city.

Photo Credit: La Prensa Honduras

Original Article Text From La Prensa Hondruas via Google Translate :

We were stagnant, San Pedro Sula is not what was”

The difficulties of roads, lack of investment, unemployment, crime, lack of major infrastructure projects, the municipality’s financial setbacks and environmental problems are just some of the factors that have stopped development in San Pedro Sula.

The city remains the benchmark in the Sula Valley, the area of ​​increased economic activity in the country, and has the potential to excel not only at national but regional, but various causes for years have made the transition from growth is getting slower and in some areas, such as investment in public works has stopped completely.
Luis Garcia Bustamante, former mayor San Pedro Sula, spoke about the reality of the city. “I think San Pedro Sula, as all the people you see, has stagnated in its development in recent years.

No infrastructure projects that give the city the boost it needs. I note with concern that in recent years here have been dedicated to making a huge effort to sweep streets, paint edges and do not have projects to minimize traffic congestion, which is a big problem. ”

Bustamante considered for development back on track properly is essential to invest the funds raised by taxes.
“The mayor should not act to pay a return without fulfilling the requirement of law that requires that at least 50% of their income is spent on works. It is worrying that happening because San Pedro Sula was always characterized by being the model city not only in Honduras but in Central America. ”
Mission of all

The former mayor said that all sectors of society should be involved to develop the city has sought. “It should work, no patching, no plugging holes, but with an urban development project that involves all actors of society, business, residents and authorities, but other than a short-term, but medium and long and thus we can establish priorities together because we were stuck, San Pedro is not what it was.

We must join forces for sampedranos regain confidence in the authorities and pay taxes here because people do not want to pay taxes because there is no work and no work because they do not pay taxes.”

Bustamante stressed the importance of making people trust the authorities to achieve growth targets.
“There must be credibility in the municipal authorities and does not exist. So some people are in arrears with their taxes. I think this may be the time in history that the City has the largest delinquent tax collection and if not return to San Pedro Sula have confidence in the City, this situation will continue. ”

Investment and infrastructure
The former mayor believes that investment is needed to return to San Pedro Sula.

“Investors are going, as the city is no longer attractive in the past. Now, instead of being an area of ​​industrial capital, we are just a service, not bad, but not sufficient, and not generated the number of jobs that are needed because the investment is not expected. ”

The engineer William Hall, who was president of the Honduran Chamber of Construction Industry and for four years, City Councilman, said that in San Pedro Sula can not continue without anyone being concerned about the lack of works.
“The city has had a huge impasse in infrastructure and the reason is that local government has not had the funds to build roads and water systems and sanitation. If these two things will get better, serve as inducers of development because investment depends and needs good roads and good drinking water, sewage and rainwater. ”
Hall said it is now time to look for options.

“I think public-private partnerships are really the poor resolution of the municipal government, as the same state, they can no longer provide maintenance for the road network.
To cover this huge deficit in roads and general San Pedro Sula is necessary to support private initiatives aimed at improving these systems. ”

Traffic eternal
Roberto Larios Silva, former mayor of San Pedro Sula, said that the city urgently needs to improve its road network to avoid the traffic problem.

“The vehicle fleet of San Pedro Sula has grown significantly each year, but on roads, the city has stagnated. That has made San Pedro Sula are permanently filled streets during peak hours. ”
The former mayor said that city officials take office found the finances in poor condition and have failed to change that.
“Although private banking has given much help to the mayor, the corporation and its officers have failed to control spending and revenues have not been able to increase in order to have sufficient resources to pay particular attention the serious problems city ​​traffic congestion in the collection of solid waste, resolving the issue of street vendors, markets, attention in social work in health, education and culture. ”

Larios Silva considered that despite the complex situation must be sought for the city.

“Time passes. Only remaining 17 months. You no longer have more private financing. The Government has no funds to pay the fee required by law to pagarled to municipalities, no funding from institutions like the International Development Bank, World Bank or the Central American Bank for Economic Integration. Then I see the situation becomes increasingly complex. ”

Larios Silva said that should make quick decisions to avoid being stuck forever. “I think the only way out of the mayor are the concessions of works and services for which the private sector makes resources and payment terms are negotiated over time. We must clarify that concession should not be confused with privatization.
Concession is when the municipality does not give or sell their property or assets, but by the Law of Private-Public Works Bids long-term concessions. Thus, the municipality does not provide any money, because this puts the dealer.
The City earns a royalty or fee that is negotiated at the dealership and run homes, relocation of people to live in decent areas and infrastructure in general. ”

The heavy local payroll
The financial situation of the Municipality San Pedro Sula is troubling, and this limits their capacity to implement development projects.

Recent financial analysis revealed that the return of the Municipality is L44 million, for L34 million to L10 million direct payments, indirect, comprising thirteenth and fourteenth month, Social Security, Infop and holidays, not including fringe benefits that are in the union contract. There are now five superintendents and a number of departments in the organization of the administration.
There are 2,800 employees and contract Bed.

Radiography of the city
Many roads are in poor condition San Pedro Sula. The asphalt should begin to be replaced with a new one for several years, but only governments have invested millions each year in patching programs.

Several streets in the city center is quite a feat for drivers spend with their vehicles. Although several local governments have passed, none has managed to relocate vendors to bring order and give them space worthy.

When approved the establishment of tolls was established that the money shall be collected on them would be used for road works in San Pedro Sula, but in reality these funds have been used entirely to pay municipal debts by way of the embargo.

The current city administration has failed to implement an effective policy of austerity, it continues to pay high returns.

Link to Original Article:

From La Prensa Honduras

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