Browse Honduras Daily Stories

Congress will weigh competing plans to reorganize the state power utility into separate generation, transmission, and distribution units, with the Liberal Party and the government differing on asset ownership, debt responsibility, and long-term contracts.

Experts debated Honduras's urgent need for electricity-sector reform, warning that failure to reach consensus by July will worsen blackouts, increase public debt, and deter foreign investment, as lawmakers disagree over whether new utilities should remain state-owned or allow private investment.

Congress President Tomás Zambrano said pending legislation to reform Honduras's state power utility aims to strengthen ENEE, reduce losses, and improve service—not privatize it—while the government spends over 16 billion lempiras annually to cover the company's deficits.

The Association for a More Just Society and the National Anti-Corruption Council have endorsed a proposal to split Honduras's state electricity company (ENEE) into three commercial companies for generation, transmission, and distribution, but analysts say the groups have softened their oversight of the Asfura government and that the reform has not been adequately discussed with the public.

The Liberal Party declared support for reforming the national electricity utility ENEE but demanded that strategic state assets, including the El Cajón hydroelectric dam, be protected from any privatization as part of the overhaul.