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Negotiations over a sweeping overhaul of Honduras's electricity system have hit a standstill in Congress after the Liberal Party created additional review committees, delaying a final committee report and blocking a floor vote despite weeks of technical work with private generators and international experts.

Honduras's Energy Commission is reviewing a Liberal Party counterproposal for restructuring the state electric utility into three operating subsidiaries, aiming to attract private capital for modernization while keeping state ownership of major generation and transmission assets.

The Liberal Party's congressional delegation will present next week an alternative to the governing party's proposed reforms to the electricity sector, focusing on two disputed articles while seeking to rescue the state utility without privatization.

Congress began debate on sweeping reforms to Honduras's electric utility ENEE, aiming to reshape its corporate structure and finances to address the state company's L50 million daily fiscal deficit before lawmakers begin mid-year recess.