Public debt of the ENEE shoots at L 37,448 million

Public debt of the ENEE shoots at L 37,448 million

Tegucigalpa, Honduras He Economic Cabinet of Honduras and the technical mission of International Monetary Fund (IMF) agreed on the need to clean up the finances of the ENEE.
Why? The central government has issued 1,165 million dollars in bonds in recent years to prevent the National Electric Power Company collapse
However, this injection of resources has triggered the balance of the public debt of the state electricity company to 37,448.5 million lempiras, according to figures from the Finance Secretary (Sefin).
As of December 2014, the balance of the internal and external debt of the ENEE was only L 3,344 million.
The proceeds from the placement of securities in the national and international markets have been destined for payment to private energy generators, mainly, and to other suppliers.
Another part of the last placement of 700 million dollars in the international market , in January 2017, it was used to cancel debts to private banks.
However, the issuance of bonds will continue, as for this year 150 million dollars, or 3,525 million lempiras, were approved to cancel the incentive of three cents to the solar generators and cover other debts.
Another factor that has contributed to trigger the balance of the internal and external debt of the state electric is obtaining loans for the construction of the Patuca III dam and the repair of other hydroelectric power plants in the country.
It is estimated that Patuca III will have a final cost of 350 million dollars.
However, most of the debt of the ENEE is with the central government and only for the period 2018-2021 should amortize between 4,800 and 5,000 million lempiras.
Financial fragility According to official sources that participated in the revision of Article IV with the IMF , the financial situation of the ENEE was one of the topics that occupied the most space in the work agenda of the participants. They added that the concern of the Monetary Fund is the sustainability of public finances due to the pressure exerted by the state electricity company.
“Although the ENEE has been subjected to a process of institutional and financial strengthening, the company’s finances are fragile,” said one of the interviewees.
He stressed that this forces the central government to inject resources to meet financial commitments and one of the examples is the approval of 150 million dollars more for this year.
Another of the interviewed said that this utility will take several years to achieve financial sustainability, since it requires rapid growth of their income to cover all their expenses.
Income One of the issues addressed with the IMF is to improve revenue collection from energy sales.
The official proposal is that to the extent losses are reduced by distribution, the ENEE will observe an increase in its collections. For each point of loss, a recovery of 330 million lempiras is estimated. The goal for 2018 is that Energy Company Honduras (EEH) reduce losses by 3%.

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