CABEI disburses US$250 million to benefit more than 9 million Hondurans in recognition of the Government's efforts to strengthen the energy sector and climate action

Tegucigalpa, December 13^th, 2022.- The Central American Bank for Economic Integration (CABEI) disbursed US$250 million to the Republic of Honduras under the Development Policy Operations Program (OPD) in Support of Strengthening the Energy Sector and Climate Action.

These resources are aligned with the objectives of the Government of the Republic to promote balanced economic growth, and recognize the efforts made in the implementation of policy actions aimed at improving the operational and financial performance of the electricity subsector, placing the reduction of losses as the main axis, focusing the subsidy to electricity fees, programs to increase electricity coverage, laws for the promotion of electro-mobility, preparation of works for the modernization of the El Cajón Hydroelectric Power Plant, transmission expansion, implementation of adaptation and mitigation measures established in the Nationally Determined Contribution in compliance with the Paris Agreement, among others.

"We are proud to support the wellbeing of Hondurans through this important disbursement, strengthening the different actions and efforts of our founding partner country to reduce losses in the energy sector and lead it towards a sustainable and transparent energy transition, which will propitiate the path towards a low-carbon economy; at the same time it will allow us to enjoy a more efficient service and recover the financial balance of ENEE," said CABEI Executive President, Dr. Dante Mossi.

Electricity generation is a fundamental service for the economic and social growth of the countries in our region, so this OPD focuses on four key areas: improving the operational and financial performance of the electricity subsector, increasing inclusive access to energy, strengthening compliance with international agreements on climate change, and improving the transparency of public information on sustainable development projects.

This operation is framed within the objectives of CABEI's Institutional Strategy 2020-2024, the Sustainable Competitiveness Axis, the Human Development Axis and the Environmental and Social Sustainability Transversal Axis, and will contribute to the Sustainable Development Goals (SDGs), specifically in affordable and clean energy and SDG target 7.1 related to guaranteeing universal access to affordable, reliable and modern energy services.