CABEI approves US$250 million for the benefit of 9 million Hondurans as part of a credit facility focused on reducing energy losses

Yucatán, September 20 2022.- In orderto reduce losses in the electricity system that affect more than nine million Hondurans, the Central American Bank for Economic Integration (CABEI) approved a US$250 million Development Policy Operation (DPO) under a financial facility for the country's energy sector and climate action.

This CABEI instrument makes resources available to its member countries to enable the authorities to implement relevant measures to improve specific sectors, which in the case of Honduras focuses mainly on reducing losses in the electricity subsector. In addition, this particular DPO is based on four pillars: improving the operational and financial performance of the electricity subsector, energy transition, promoting the decarbonization of development, and transparency of public information for Sustainable Development.

"With this financing, CABEI reinforces its firm support to the Republic of Honduras so that actions can be implemented to provide a solution to the problems the country is experiencing with electricity losses that currently exceed 30%, the highest in the Central American region.  By reducing this level of losses, ENEE will recover its financial equilibrium and improve access to and quality of electricity service for the population," said CABEI Executive President, Dr. Dante Mossi.

The operation contemplates actions such as: the national loss reduction plan, targeting of the subsidy to electricity tariffs, programs to increase electricity coverage, electro-mobility, works for the modernization of the El Cajón Hydroelectric Power Plant, transmission expansion, implementation of adaptation and mitigation measures established in the Nationally Determined Contribution in compliance with the Paris Agreement, among others, which are in line with the Government's objectives to achieve a sustainable and transparent energy transition.

It is aligned with the objectives of the CABEI 2020-2024 Institutional Strategy in the Sustainable Competitiveness Axis and the Environmental and Social Sustainability Transversal Axis and will contribute to the Sustainable Development Goals (SDGs) specifically in affordable and clean energy and in target 7.1 related to guaranteeing universal access to affordable, reliable and modern energy services.