No Money for Hydroelectric Station Patuca III

The 105 MW hydroelectric project which the Honduran government promised five years ago has still can not materialized due to lack of funding.

Wednesday, April 8, 2015

Although in November the government announced that it had signed a $297 million loan with the government of China , the funds have not yet materialized and the estimated project reactivation date is unknown. According announcements made by authorities previously, they are still evaluating the possibility of advancing the project through a public-private partnership.

Leonardo Deras, technical manager of the National Electricity Company (ENEE), told that "... I do not know the exact date of resumption of the project because they have 'yet to conclude financing with China, and on this point I have no information'. The works have been paralyzed since late 2013, as the initial $50 million was only just enough to finish the first phase of the dam ... " "... It has not been possible to settle the loan of $298 million with a bank in the People's Republic of China, in fact the state company does not have the funds to pay millions in outstanding claims ... "

Siegfried Sandoval, member of the energy committee of the College of Mechanical Electrical and Chemical Engineers of Honduras (CIMEQH), said "... They have not even been able to conclude the deviation of the Patuca River, which was one of the works conceived in the first stage and owners of the affected land have not been paid. In short, the project is a total disaster, because they have not managed to get the $300 million needed to finish it. "

More on this topic

Still No Money for Patuca III Hydroelectric Station

February 2015

Despite the announcement made in november of a $297 million loan from China, the resources have not yet been disbursed and the project for the 105 MW plant in Honduras remains paralyzed.

The work has been paralyzed since 2013 due to problems with funding and expropriation of the surrounding land.

Confirmation for Funding for Hydroelectric Patuca III

November 2014

The Honduran government has announced that China has approved a $297 million loan, after a year of negotiations, which will be used to finish work which has been on hold since June 2014.

The loan term is 15 years plus a 5 year grace period, with an interest rate of 4.5% and it is expected that the first disbursement will be made in the next 30-60 days.

Hydroelectric Project Suspended in Honduras

June 2014

Work has stopped on the Patuca III hydroelectric project pending funding which is being negotiated with the Chinese government for the continuation of the second stage.

Lack of funding and problems with the expropriation of land surrounding the project are part of the problems that this project has faced since it was first conceptualized in 2010.

Honduras Approves Loan for Hydroelectric Patuca III

May 2011

The funding of $300 million for the construction of the Patuca III hydroelectric project has been approved by the bank Eximbank.

Financial Secretary, William Chong Wong said that negotiations of both the technical and political details with China have reached the final phase, which has led to the approval of funding by the bank.

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