Honduran president rules out privatizing state electric company, prioritizes financial rescue

President Nasry Asfura has firmly rejected any plans to privatize Honduras's state-owned electric company, ENEE. Instead, his administration is focusing on a comprehensive rescue plan aimed at improving the company's financial health and operational efficiency. Asfura emphasized that the government's priority is to "seek the best efficiency for the company and make the necessary decisions to move it forward."

The ENEE is in a critical state, described by Asfura as an "economic hemorrhage" with staggering energy losses. Approximately 56% of energy is lost, a situation that severely hampers the government's ability to invest in essential public services like healthcare, education, and infrastructure. "We cannot continue to lose. The figures are alarming, and that limits the country's capacity to invest in the population's needs," Asfura stated.

While acknowledging that legal reforms will not offer an immediate fix, the president highlighted their crucial role in halting the company's deterioration. Upcoming legislative debates will focus on a new regulatory framework for the electricity sector, with Asfura urging lawmakers to support reforms designed to bolster the company's institutional strength. The Association for a Society More Just (ASJ) reports that the electricity crisis accounts for a quarter of Honduras's public debt, projecting costs to escalate significantly without immediate intervention.