The EU Steps In to Back Honduras’s Power-Sector Overhaul
The EU offered Honduras an €8 million grant and dangled up to €500 million in EIB loans to back its power-sector reform, on condition that Congress passes the overhaul. The post The EU Steps In to Back Honduras’s Power-Sector Overhaul appeared first on The Rio Times .
The European Union is providing Honduras with a €8 million grant and the prospect of even larger loans, contingent upon approval of the country's power-sector reform by its Congress. The grant, equivalent to roughly US$9.2 million, is not a standalone offer but serves as a starting point for further financial assistance. The European Investment Bank, the EU's lending arm, has floated the possibility of up to €500 million in financing, beginning with an initial tranche of around €200 million.
This substantial financial support aims to address Honduras's long-standing issues with an ailing electricity system, including significant losses, debt, and unreliable supply. To unlock the larger financing, Congress must first endorse the reform. The EU's conditional assistance, which builds upon prior commitments of €173 million in non-reimbursable funds between 2021 and 2026, is designed to encourage reform and improve the country's power grid.
By enhancing the reliability of the grid, Honduras can foster economic growth, attract private investment, and strengthen its position in the region, where several nations compete for European influence through development projects.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
