Attachment 1

                                                 “SCHEDULE 1

                                               Project Description

     The objective of the Project is to improve water service delivery and strengthen water governance in
selected areas of the Dry Corridor of Honduras.

      The Project consists of the following parts:

Part 1: Strengthening Institutional Capacity for Water Resources Governance and Management

(a)      Strengthening water resource information systems in the Nacaome Water Basin through, inter alia:
         (i) (A) developing: (1) an optimization plan for the modernization of hydrological and climate
         services; and (2) an operation and maintenance plan; and (B) upgrading the hydroclimatic network;
         (ii) developing an automated hydroclimatic data integration system, including the acquisition and
         installation of the associated IT equipment; and (iii) building capacities of technical staff and key
         local actors.

(b)      Promoting water governance and capacity building as follows:

         1.      At the municipal level, through, inter alia: (i) providing support in the process of issuance of
                 the Legal Declaration of water source zones; (ii) supporting the elaboration of watershed
                 management and protection plans; and (iii) if needed, as determined by the Recipient in a
                 manner acceptable to the Association, supporting the design of compensation mechanisms
                 to protect the catchment area.

         2.      At the basin level, through, inter alia: (i) supporting and designing new mechanisms for
                 managing the JCV Dam and for managing existing water treatment plants to be rehabilitated;
                 (ii) capacity strengthening activities for Water Boards and Water Providers; and
                 (iii) elaborating watershed management plans.

         3.      At the national level, through the preparation of, inter alia: (i) a National Irrigation and
                 Drainage Master Plan; (ii) guidelines for water resources management informing, inter alia,
                 sector policies and regulations.

Part 2: Scaling up Resilient Hydraulic Infrastructure for Water Security in the Dry Corridor

(a)      Promoting an integrated and multi-purpose micro-watershed management approach in the Dry Corridor,
         including, inter alia: (i) the establishing of selected SIAS, through designing, constructing, and
         supervising the necessary infrastructure to operate said systems, including the design and implementation
         of the corresponding environmental and social assessments; (ii) providing capacity building and/or
         training to the Water Boards and Irrigation Boards on operation and maintenance of the SIASs, and other
         agriculture aspects including crop management; (iii) providing basic sanitation units and implementing
         social communication plans to promote rational use of water and hygiene practices; and (iv) developing
         of upstream catchment protection and management plans.

(b)      Improving the safety of the JCV Dam through, inter alia: (i) [intentionally left blank]; (ii) [intentionally
         left blank]; (iii) implementing associated environmental and social mitigation and management plans in
         accordance with the ESIA; and (iv) implementing dam safety interventions which includes, inter alia:
         (A) a comprehensive dam safety assessment; (B) small repairs and maintenance work as deemed

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        necessary; (C) Training and capacity building around dam operation and maintenance; and (D) the
        preparation and completion of specific operations and maintenance manuals, a monitoring plan, a
        publicly approved emergency preparedness plan, an emergency action plan for high spillway discharge,
        and dam break contingencies.

(c)     (i) Rehabilitating existing water treatment plants located in Selected Municipalities downstream of the
        JVC Dam; and (ii) providing technical assistance to SERNA to establish mechanisms to ensure
        sustainability of the operation and maintenance of the rehabilitated water treatment plants.

Part 3: Project Management and Capacity Building

         Strengthening SAG’s implementation capacity, through inter alia provision of support for:
(a) Project management and coordination; (b) monitoring result evaluation and impact assessment activities;
(c) fiduciary administration and oversight, internal controls, and Project audits; (d) SAG’s systems for
environmental and social standards risk management; (e) outreaching stakeholders for awareness on the
Project, citizen engagement and establishment of grievance mechanisms; (f) carrying out Project-related
strategic studies, as well as pre-feasibility and environmental and social studies that may contribute towards
preparation of future interventions in the Dry Corridor; (g) designing and implementing the Project’s gender
strategy; and (h) Training of the PMU staff.

Part 4: Contingency Emergency Response Component

        Provision of immediate response to an Eligible Crisis or Emergency, as needed.”




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