Honduras OKs breakup of state power firm, to allow private investment
Honduras OKs breakup of state power firm, to allow private investment
By Gustavo Palencia
TEGUCIGALPA Mon Jan 20, 2014 11:50pm EST
Jan 20 (Reuters) - Honduras' Congress on Monday approved a breakup of the country's state-controlled electricity producer, allowing private interests to invest in the semi-shuttered industry in an effort to stem the company's losses and revitalize the ailing sector.
ENEE, as the company is known, currently generates electricity and also buys from independent producers. But the state-subsidized firm has faced losses of roughly $200 million a year, preventing it from investing in new projects.
"This legislation allows the participation of private actors in all of the electricity market to drive investment in the sector and respond to the demand for electricity that is key to the development of this country," Emil Hawit, ENEE's director, told reporters.
Under the terms of the legislation, backed by 95 of the country's 128 lawmakers, ENEE will be broken into three separate companies - for generation, transmission and distribution - which will be open to private investors.
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http://www.reuters.com/article/2014/01/21/honduras-energy-idUSL2N0KV04220140121?rpc=401&feedType=RSS&feedName=bondsNews&rpc=401