work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/ licenses/by-nc-nd/3.0/igo/legalcode) and may be reproduced with attribution to the IDB and for any noncommercial purpose. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Note that link provided above includes additional terms and conditions of the license.The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent.http://www.iadb.org 2015 Abstract * Honduras has expanded its public-private partnership portfolio considerably since passing the PPP law in 2010, but concerns remain about their institutional and regulatory capabilities even in the wake of their new 2014 PPP law reform. Though this reform created the Fiscal Contingency Unit (FCU), a new independent unit within the Ministry of Finance with the explicit purpose of approving PPP projects and conducting oversight, the core responsibilities related to promoting, managing and monitoring PPP development still remain with the Commission for the Promotion of PPPs (Coalianza). The FCU is currently unable to function in its oversight approval and oversight capacity and has no clear mandate under which to function. Meanwhile, the government's current quantifiable firm and contingent commitments in PPP contracts account for 6.6 percent of GDP. We therefore propose a number of additional reforms to the existing frameworks to remove conflicting incentives from Coalianza and improve FCU's oversight capabilities.JEL Codes: E62, H54, H57, H83