Honduras energy reform backed by CAF to modernize ENEE and cut costs

The Development Bank of Latin America and the Caribbean (CAF) announced its support for the Honduran government's energy reform package aimed at modernising the state‑run electricity utility ENEE. CAF said the reforms could strengthen generation capacity, attract foreign investment and improve service quality, while offering technical assistance during implementation.

The reform, currently being debated in the Honduran Congress, seeks to address chronic losses—estimated at 50 million lempiras a day and 16 billion lempiras annually—by improving governance, enabling competitive procurement and ensuring 24‑hour electricity supply. Government officials emphasized that the plan does not entail privatisation but rather reinforces ENEE as a state asset. Multilateral organisations have signaled readiness to fund transmission and distribution projects if the legislation passes. A series of socialisation meetings with stakeholders, including European economic bodies and professional associations, are ongoing to refine the proposal before a full congressional vote.