The EITI Board agreed the outcome of Honduras's targeted assessment

In accordance to requirement 1.5, Honduras must agree upon and publish a fully costed work plan that aligns with the reporting and Validation deadlines established by the EITI Board, as detailed in this Requirement. This work plan should also be linked to the EITI Principles and reflect national priorities for the extractive industries. In fulfilling this requirement, Honduras could consider incorporating activities related to thematic areas such as energy transition, licensing, artisanal and small-scale mining, the UN Escazú Agreement, the forestry sector, monitoring of environmental regulations in the extractive industry and monitoring the conditions of civic space affecting the extractive sector.

Honduras has made improvements in terms of the availability of data in public form, for example, with the completion of the EITI Honduras website. This website presents the data in a more user-friendly way. The EITI platform has been used to discuss relevant issues in the extractive sector in Honduras. It has promoted interaction with local stakeholders included in the OGP action plans and the National Climate Change Strategy. During the years analysed, the use of EITI data in independent reports produced by civil society organisations was an improvement in the EITI's contribution to the public debate.

Honduras has made no effort to address these issues. There is an opportunity to utilise government bodies such as SAR and INHGEOMIN to generate and make available data relating to the extractive sector on an ongoing basis. Honduras could also utilise the framework provided by the IAIP to ensure that information is available on a regular basis and incentivise the use of information by citizens, the media and other parties.

EITI-Honduras has addressed discrepancies and identified shortcomings. Government agencies such as INHGEOMIN have incorporated lessons learned from EITI implementation. Other agencies have identified the possibility of using the EITI to generate additional improvements. The MSG has taken stock of what has been achieved and the opportunities for generating further improvements. However, the multi-stakeholder group has not been sufficiently successful in developing a clear set of recommendations that can be communicated to other stakeholders, including government agencies. The implementation of these recommendations is essential to ensure that the EITI contributes to Honduras' national priorities.

The MSG lacks a systematic approach to reviewing outcomes and impact. However, the records of its discussions show that some emphasis has been placed on these issues. Furthermore, the EITI Report 2017-2018 records and reports the impact areas discussed and identified by stakeholders. The impact assessment was endorsed by the MSG and is publicly available in the report.

In accordance with Requirement 1.1.a, following the 31 October 2023 letter from Secretary of Transparency Jaime Turcios to the EITI Board notifying the appointment of an EITI Champion and the New Mining Policy released for socialisation in November 2024, the government must make public its commitment to implement the EITI. In following this requirement, the government should ensure that the updated formal decree setting the legal framework for EITI Implementation is enacted. This decree should update procedures to ensure the participation of relevant stakeholders from the government, industry, and civil society constituencies and should be published before the commencement of the next Validation. In addition, the government could consider designating a different line ministry or government authority, such as INHGEOMIN, to lead EITI implementation in Honduras given the ministry’s central role in carrying out the new mining policy, which is currently in draft. In accordance with Requirement 1.1.b, the government should ensure that the national secretariat is properly staffed to support progress in addressing EITI Requirements, including the corrective actions from the last targeted assessment and from this targeted assessment. In accordance with Requirement 1.1.c, the government should provide the necessary operational support to ensure that a 2023-2024 EITI Report is published before the commencement of the next Validation. The government should demonstrate that the EITI Report includes a new set of key areas and priorities that are relevant for all constituencies on the MSG and aligned with national priorities. The government should also demonstrate that the EITI Report has been used to inform public debate and policy making. The EITI Champion should liaise with the mining authority and the Chief of Staff of the Presidency to guarantee that sufficient resources are allocated for preparing the EITI Report as well as all aspects of the EITI process, and that government agencies facilitate the disclosure of required information. In accordance with Requirement 1.1.d, the government should ensure it is fully, actively, and effectively engaged in the EITI process by ensuring that senior officials from all relevant government entities are represented and engaged in the MSG. In fulfilling this requirement, the government must ensure the participation of an inclusive and diverse group of government representatives on the MSG.

In accordance with Requirement 1.2.a, the industry constituency should be fully, actively and effectively engaged in all aspects of the EITI process. The industry constituency should codify clear constituency nominations and coordination procedures to ensure that the industry constituency on the MSG represents companies from all sectors of the extractive industries, including oil and gas companies, small scale miners and other extractive sectors such as forestry, as applicable in the Honduran context. In accordance with Requirement 1.2.b, the government should foster an environment conducive to company participation, including through the establishment and maintenance of a functioning MSG. To meet this requirement, the government is expected to actively collaborate with companies in the identification, discussion, and evaluation of any legal, regulatory, or administrative obstacles that could impede company engagement in the EITI process.

In accordance with Requirement 1.3.a and the EITI protocol: Participation of civil society, Honduras should demonstrate that civil society is fully, actively, and effectively engaged in the EITI process. To achieve this, civil society should codify its internal coordination procedures and objectives and priorities for its engagement in the EITI. This exercise could draw on the early discussions on the current relevant issues for civil society, including but not limited to, mining policy, licensing and free and prior consultation, mining and fiscal regulatory framework, environmental impact and monitoring of civic space. In accordance with Requirement 1.3.b and with the EITI protocol: Participation of civil society, the civil society constituency should ensure effective representation of CSOs engaged in the extractive sector. Civil society representation should be diverse, including representatives from community organisations, and consider gender balance. The civil society constituency must work with the government to identify possible pathways to improve the legal environment to ensure that civic space is conducive to CSOs' participation. In this process, the government must ensure that there are no obstacles to civil society participation in the EITI process and a diverse range of civil society organisations are represented and engaged. In accordance with Requirement 1.3.b and with the EITI protocol: Participation of civil society, the MSG should monitor the adherence to the civil society protocol, ensuring that the revised work plan includes actions to monitor and document shortcomings and activities undertaken to correct them. The government should work with the civil society constituency to find practical ways of guaranteeing that civil society is able to express their opinions and freely associate without fear of reprisals. The government is encouraged to make a public statement encouraging civil society engagement in the EITI process, including in publicly expressing views critical of government and extractive companies.

In accordance with Requirement 1.4.a, each constituency must ensure to have clear governance rules specifying their nominations procedures for appointing their representatives to the MSG, as well as their roles and responsibilities. In fulfilling this requirement, each constituency should coordinate with their wider groups to ensure diversified and balanced representation at the MSG. In accordance with Requirement 1.4.b, the government should renew the legal framework for the MSG including a refreshed representation from all three constituencies. While renewing the MSG, all three constituencies should review their internal governance rules and procedures and ensure adequate representation of key stakeholders including senior government officials. In strengthening internal governance, the rules and procedures must ensure inclusive decision-making throughout EITI implementation. In fulfilling this requirement, each constituency should coordinate with their wider groups to ensure diversified and balanced representation in the MSG. In renewing the MSG, the government must ensure that adequate support is provided to ensure the MSG could discharge its obligations including liaising with constituencies, capacity to carry out duties, disseminate information from the EITI process, work planning and maintaining proper records.

The 2014 EITI Report provided an overview of the extractive industries, including exploration activities.

The EITI Reports for 2015-2016 and 2017-2018 disclose comprehensive information, in both absolute and relative terms, about the size of the extractive industries, exports, employment and certain key areas. Although the 2017-2018 Report only provides the value of extractive government revenues in absolute terms, and not as a share of total government revenues, it is possible to calculate the relative contribution of extractive revenues based on the total government revenue figures available from official government sources.

The EITI Report provides a comprehensive description of the legal framework and fiscal regime governing the extractive industries, and discusses reform efforts. It also contains a description of the functions of the main regulatory body, as well as comments by the Independent Administrator on the clarity of some provisions of the mining law.

The Honduran government supports and implements contract transparency. Contractual arrangements in the mining sector are uniform according to the mining law and are publicly available. Oil and gas contracts are published in the official gazette and on the portal of the Ministry of Natural Resources.

The required information regarding the award and transfer of licences is disclosed in the EITI Report.

Information on licences awarded to companies in the extractive sector, as required by the EITI Standard, is publicly available in the EITI Report. This information is extracted from the official register held in the regulator's information system, SIHMON.

Honduras has published a roadmap for the disclosure of information on the beneficial owners in accordance with Requirement 2.5.b. ii.

Through INHGEOMIN, the government confirmed that it has no involvement in any mining or hydrocarbon projects.

The legal framework in Honduras does not allow taxes or tariffs to be collected in any way other than in cash.

There are no state-owned companies involved in the exploration, exploitation and commercialisation of minerals or hydrocarbons.

Honduras has no active state-owned enterprise and no quasi-fiscal expenditure.

Information about production was based on export data, as all production in the metal sector is exported.

The 2014 Report presented comprehensive data on export volumes and values. It did not address how the values were calculated. However, this is only a suggestion in the Standard.

The reconciliation exercise for the 2017-2018 EITI Report for Honduras covered 98.7% and 99% of all extractive sector revenues received by the government. The report also disclosed all revenues received by all government entities in accordance with the agreed scope.

The legal framework in Honduras does not allow these types of transactions in oil, gas and mining activities.

The transport of minerals in Honduras is provided entirely by the private sector, and the State does not participate in the provision of these services.

The EITI Report 2017-2018 did not include any consideration by the MSG as to which assumptions are considered as an individual project. Disaggregation by individual project was one of the requirements of the 2016 EITI Standard for reports corresponding to the 2018 fiscal year, following the MSG's definition of what constitutes an individual project. This was not addressed in the 2017-2018 EITI Report.

The first EITI Report (corresponding to 2012 and 2013) was published in May 2015, while the second (referring to 2014) was released in September 2016.

For the 2017-2018 EITI Report, the Independent Administrator provided an assessment of the government and municipal data, but did not comment on the reliability of the company data, nor did it address the issue of non-reporting companies. In accordance with Requirement 4.9 and the standard terms of reference for the Independent Administrator, the MSG should ensure that the Independent Administrator provides an assessment of whether all companies and government entities included in the agreed scope of the EITI disclosure process adhere to the agreed quality assurance mechanism in future EITI disclosures.

The reports from Honduras included a description of the distribution of income from the extractive industries. Income is categorised according to the Integrated National Financial Administration System (SIAF) and the Integrated Municipal Administration System (SAMI) available through the Ministry of Finance.

According to Legislative Decree No. 199 of 2011, the population security tax goes to the Population Protection and Security Fund. The 2014 EITI Report indicates that 5% of the municipal tax goes to the Municipal Social Investment Fund.

The 2017-2018 EITI Report includes the disclosure of revenue flows from seven municipalities. The report discloses all significant direct payments made by reporting companies in the years analysed. This subnational revenue represented 9.9% and 7.1% of the total revenue (national and subnational) collected by the government. The 2017-2018 EITI Report includes the reconciliation of these seven revenue streams for each company.

According to the Constitution of the Republic (article 363), all ordinary tax revenues shall constitute a single fund. The revenue streams included in this Report, except for the population security levy and taxes collected directly by municipalities, are considered ordinary tax revenues. Municipal taxes were covered in Requirement 4.6.

The 2015-2016 EITI Report clearly states that no social expenditures are provided for in any law or contract governing resource extraction. Furthermore, all stakeholders consulted confirmed that social payments are voluntary and not mandatory in Honduras. This was also confirmed in the 2017-2018 EITI Report.