Honduras Considers Electrical Subsector Reforms for Modernization

Honduras is undertaking reforms to modernize its electrical subsector, a system that has remained largely unchanged for six to seven decades. Jacqueline Foglia, Honduras's ambassador to Colombia and an investment expert, stated that these reforms offer an opportunity to update the nation's energy system, enhance its financial stability, and attract crucial investment.

Foglia explained that the current model, established when Honduras's population was around three million, is no longer adequate for the country's current population of approximately 10 million. The increasing energy demand and the availability of advanced technologies necessitate a reevaluation of the sector's operations to ensure efficient and competitive service for all citizens.

"It is responsible as a country to restructure the model to achieve greater competitiveness and ensure that the energy service continues to be offered to the entire population," Foglia stated. She clarified that the reforms are focused on modernization rather than privatization. "Many say it will be privatized, but I say everything must be modernized according to needs. We no longer use fax; today, the technology is cutting-edge. Likewise, the state electric company must evolve," she added.

The ambassador acknowledged the significant financial difficulties plaguing the current model, which have contributed to the sector's mounting debt. "It must be recognized that this same model has not been working. The state company is in crisis, and we are getting more indebted every day because of it," she warned. Foglia concluded that a robust and competitive electrical sector is essential for Honduras to attract investment, foster economic growth, and create employment opportunities.