Page "Economy of Honduras" Paragraph 83

With encouragement from the United States Agency for International Development ( AID ), the Honduran government began to decentralize Cohdefor beginning in 1985.

Under the decentralization plan, regulatory responsibilities were transferred from the central government to mayors and other municipal officials on the assumption that local officials would provide better oversight.

Despite decentralization and the sale of government assets, Cohdefor's remaining debt was US $ 240 million in 1991.

The government also assumed continued financial responsibility for the construction of a new airstrip in the area of timber extraction, upgrading facilities at Puerto Castilla and Puerto Lempira, and providing electricity at reduced prices to lumber concerns as part of the privatization package.