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. According announcements made by authorities previously, they are still evaluating the possibility of advancing the project through a public-private partnership.
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. 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 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.
On September 24, a Honduran delegation will travel to China to finalize the signing of the $295 million loan that will enable the realization of the hydroelectric project.
"The loan, including all expenses, will have an interest rate of 5.44% over 15 years with a three year grace period. The conditions are very attractive," said Emil Hawitt, general manager of Empresa Nacional de Energía Eléctrica (ENEE).
Honduras is negotiating with the Industrial Bank of China for financing the first stage of Patuca III hydroelectric dam.
"We are happy because we are moving pretty fast in negotiating the terms of the loan, we are looking for the most favorable conditions for the country, we hope that in 30 days we will have closed deal," said Wilfredo Cerrato, chief of the Ministry of Finance.
The project, which was initially promoted by the Taiwanese State Power Company , was canceled in 2009, and now $300 million is being sought in China for its implementation.
Wilfredo Cerrato, Minister of the Ministry of Surety (SEFIN) and Foreign Minister Arturo Corrales, are touring mainland China in order to complete the process of negotiations for the financial support of about $300 million with which the project Patook III would be carried out.