CABEI and the Republic of Honduras formalize US$250 million agreement to strengthen the energy sector
Tegucigalpa, October 25th, 2022.– For the benefit of more than 9 million Hondurans, the Central American Bank For Economic Integration (CABEI) and the Republic of Honduras formalized a US$250 million Development Policy Operation (DPO) that will lay the groundwork for a plan to reduce electricity losses and promote a sustainable energy transition.
The resources were approved by the multilateral at its last Board of Directors meeting in September, and are aimed at promoting the development of four key areas for the development of Honduras: improving the operational and financial performance of the electricity subsector, increasing inclusive access to energy, strengthening compliance with international agreements on climate change, and improving the transparency of public information on sustainable development projects.
"This agreement will benefit the entire Honduran population in general, as it will facilitate access to quality service at a lower cost, as well as bring electricity to remote areas, improving the quality of life of the population in a sustainable manner," said CABEI Executive President, Dr. Dante Mossi.
CABEI's Executive President, Dr. Dante Mossi, and the Secretary of State in the Finance Office of the Republic of Honduras, Ms. Rixi Moncada, formalized the loan, which will subsequently be submitted to the Honduran National Congress for approval.
CABEI, as the region's development bank, continues to support Honduras in implementing relevant measures to strengthen the electricity subsector and, with this innovative instrument, to advance in the fulfillment of international climate indicators and effective actions in favor of resilience.
The operation is aligned with the objectives of CABEI's 2020-2024 Institutional Strategy to promote sustainable competitiveness, human development and social inclusion.