CABEI approves $165 M to upgrade Honduras’ grid
Electricity Transmission Programme Phase I will expand infrastructure, improve service for over 2 million people, and support economic growth and regional integration.
Image for illustrative purposes
Honduras: The Central American Bank for Economic Integration (CABEI) has approved $165 M in financing for the Republic of Honduras to implement the Electricity Transmission Programme, Phase I. The nationwide initiative aims to strengthen the country’s energy infrastructure, improve power quality and reliability for more than two million people, and promote both local and international investment.
The programme includes the construction of approximately 122 km of new transmission lines, two new substations, and upgrades to four existing substations. These improvements are designed to address capacity limitations in the current grid that hinder energy stability and regional economic development.
Key projects include a 29-km, 230-kV line between La Entrada and Santa Rosa II, a 43-km line connecting Amarateca and Talanga, and a 40.6-km double-circuit network between Masca and La Victoria, plus an 8.6-km extension to Bermejo.
The initiative is aligned with Honduras’ 2024–2033 Transmission Network Expansion Plan, approved by the Electric Energy Regulatory Commission (CREE). The National Electric Energy Company (ENEE) will lead the programme’s implementation.
CABEI has previously supported energy sector development in the region through non-reimbursable technical cooperation, including $1.54 M for studies in Honduras and Nicaragua and nearly $100,000 for programme planning assistance.
The project also strengthens Honduras’ role in the Central American Electric Interconnection System (SIEPAC), promoting cross-border electricity exchange and regional energy integration. It aligns with CABEI’s 2025–2029 strategy to support energy resilience, infrastructure development, and social welfare across the region.
Source: CABEI
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