CABEI approves financing for US$165.0 million to modernize Honduras' electricity grid

Tegucigalpa, June 11, 2025.- The Central American Bank for Economic Integration (CABEI) approved financing of US$165 million for the Republic of Honduras for the implementation of the Electricity Transmission Program, Phase I, a nationwide initiative that seeks to strengthen the country's energy infrastructure to improve the quality of electricity service for more than two million people and create better conditions for domestic and international private investment.

The project includes the construction of approximately 122 kilometers of transmission lines, the construction of two new substations, and the increase of four existing ones. These works will overcome current limitations in energy transmission capacity, which affect both the stability of supply and economic growth in different regions of the country.

Among the three specific projects that will strengthen the system in key areas in the west, center-south, and north of the country, the connection between La Entrada and Santa Rosa II stands out, with a 29-kilometer, 230-kilovolt (kV) line, along with an additional 500-meter, 69-kV section to Santa Rosa. A 43-kilometer line will also be built between Amarateca and Talanga, and a 40.6-kilometer double-circuit network will be developed between Masca, La Victoria, and 8.6 kilometers between La Victoria and Bermejo.

The works are in line with the 2024-2033 Transmission Network Expansion Plan approved by the Electric Energy Regulatory Commission (CREE). In support of this initiative, in previous years CABEI granted a Non-Refundable Technical Cooperation for US$1.54 million for studies in the electricity sector in Honduras and Nicaragua, as well as a second non-reimbursable cooperation for US$99,700 for technical assistance in program formulation.

The National Electric Energy Company (ENEE) will be responsible for implementing the program. The works will strengthen the electrical system's capacity to respond to growing demand, facilitate the energy transition through the introduction of new power generation projects, and promote better conditions for the growth of domestic and international private investment in the country, improving the competitiveness of the energy sector. Likewise, regional integration will be promoted through the strengthening of interconnections with the Central American Electric Interconnection System (SIEPAC) network, allowing for greater imports and exports of electricity in the Regional Electricity Market (MER).

The Program is aligned with the  2025-2029 CABEI Strategy, particularly in the positive impact pillar and the objective of promoting regional economic integration. It also addresses the priority areas of energy, resilient infrastructure, and inclusion, contributing to the improvement of social welfare and human development.