Still No Money for Patuca III Hydroelectric Station

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.

Tuesday, February 17, 2015

The work has been paralyzed since 2013 due to problems with funding and expropriation of the surrounding land. However, during 2014 a loan was negotiated with the Republic of China which was approved in November but funds have not yet been disbursed and the work remains unfinished.

The Director of Planning at the National Electricity Company (ENEE by its initials in Spanish), Gerardo Salgado, reported in an article on Latribuna.hn that "... I think that many of the difficulties are due to the lack of diplomatic relations with China, it is something that we knew about, but the Chinese government itself promised to find solutions. "

He added that despite "... All of the efforts made by the administration of both the ENEE, and the Ministry of Finance for approval and disbursement of these resources, they have failed to achieve that end. We have been looking for options, but you can not end or start the search for financing when you have already started a massive effort to search for resources from China."



More on this topic

No Money for Hydroelectric Station Patuca III

April 2015

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

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.

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 Lands $298 million For Dam

July 2013

The Industrial and Commercial Bank of China will provide the funds to carry out the Patuca III hydroelectricity project.

The plant is planned to be built in the eastern region of Honduras, and will have capacity to generate up to 524 megawatts of clean energy with a total price of $1.2 billion.

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