General practice regarding the design of micro hydro power (MHP) projects has often centred on attaining specific technical standards, expectations and results, with less focus on sustainability. But in countries that have been successful in the sustainable operation of MHPs, such as Peru and Nepal, long term sustainability is defined by a greater variety of factors. With this knowledge, the World Bank commissioned the design of two Honduran MHP projects in Las Champas and La Atravesada based on three fundamental pillars:
1. Using electricity as a driver for socioeconomic development.
2. Building institutional and technical capacity for all participating actors.
3. Monitoring and evaluation of the project, its implementation, and lessons-learned

During project feasibility, several productive applications (by region) had been identified and evaluated. Each of these applications were designed based on the socio-economic conditions of each community and their past productive vocation. The GAPFund project was designed to complement and support the construction phase of these micro hydro plants by increasing awareness among rural developers of the synergies between projected commercial activities, community development, new microenterprise initiatives and the level of energy services to be provided.

Tools, in the form of manuals and training programmes, were developed that supported, encouraged and strengthened capacity development activities and facilitated the financing of rural microenterprises focusing on sustainable energy technologies and services.

Funding: US$49,100

Duration: One year

Results:

1) Energy guidelines were produced for productive energy uses and microenterprises in Honduras.

2) A microfinancing model for income generating activities for micro hydro plants was prepared as well as two business plans and a training manual for microfinance providers.

3) A Monitoring and Evaluation Framework for energy projects in Honduras was produced.

4) A set of documents (reports, technical guidelines, micro credit guidelines, training procedures, M&E plan model) were produced that could be used by the Government to develop sustainable productive uses in newly electrified communities.

5) Model business package in both the micro hydro sites of Las Champas and La Atravesada.