22 January 2009: The World Bank Board of Directors has approved a US$30 million interest-free loan to strengthen the energy sector in Honduras. The project’s three components are: building the national electric power company’s (Empresa Nacional de Energía Eléctrica (ENEE)) management and commercial capacity; renewing and rehabilitating distribution equipment, including the removal of polluted transformers; and institutional strengthening and corporate governance.

Honduran Finance Minister Rebeca Santos explained that the operation will streamline the State-owned ENEE and further support new investments in renewable energy. The energy sector is key in achieving the World Bank’s Country Assistance Strategy for 2007-2010 and supports the broader goal of the Poverty Reduction Strategy by contributing to accelerated economic development. [World Bank Press Release]