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Honduras electrical infrastructure development

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2026-10-02 23:24 UTC → 2026-10-03 01:51 UTC · added ~~removed~~

The Development Bank of Latin America and the Caribbean (CAF) has approved a sovereign loan of up to $177 million for Honduras to strengthen its national electrical system. The funding is designated for the El Sitio–Zamoramo II–Terrero Blanco transmission line project, which will be executed by the Empresa Nacional de Energía Eléctrica (ENEE). The project involves constructing approximately 150 kilometers of 230 kV double-circuit transmission lines and building two new substations, Zamoramo II and Danlí II, alongside upgrading four existing substations. These infrastructure improvements aim to enhance the quality, continuity, and reliability of the electricity supply in the central-eastern corridor, benefiting approximately 865,000 residents in the departments of Francisco Morazán, El Paraíso, and Olancho while improving the efficiency of renewable energy utilization. This electrical grid loan is part of a broader deployment of capital by development banks across Latin America and the Caribbean to support infrastructure, energy, and climate resilience. In addition to the electrical project, the Inter-American Development Bank (IDB) has approved $70 million for Honduras to modernize water supply and sanitation services in the Central District, a move intended to reduce water loss and improve service for 345,000 people.

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