Honduras seeks to solve its energy problems with the help of China

Blackouts are now part of the daily life of Hondurans due to the deficit in generation, transmission and transportation of the electrical network, according to the National Electric Energy Company (ENEE) of Honduras. And due to the precariousness of the distribution equipment, blackouts are announced throughout the country.

“China is a solid investor”

The supply of electrical energy has become a national security problem that Xiomara Castro seeks to solve with the help of China. “Energy is key for Honduras, and China is a solid investor in this area worldwide. China has significant investment capital and many financing mechanisms for its implementation”, explains Andrés Raggio, associate researcher for Asian Affairs at FLACSO.

“At the meeting that Foreign Minister Eduardo Enrique Reina had with senior Chinese leaders at the beginning of the year in Brazil, they spoke of an interest in China investing in the hydroelectric dam sector, precisely to strengthen the Honduran National Electric Power Company . The Powerchina company in its international version, Sinohydro, has already participated in dam projects in Honduras, in particular with the so-called Patuca 3. In fact, with loans from the Chinese bank ICBC of around 450 million dollars. And it should also be noted that there was Taiwanese cooperation in this sector”, adds Raggio.

“Dissolution of Taiwanese power”

Attracted by the song of China’s sirens, President Xiomara Castro did not mind breaking diplomatic relations with Taiwan: “It seems that Xiomara Castro has decided to change the affiliation with Taiwan, cut ties with Taiwan diplomatically and establish them with China in order to find Chinese financing for this new dam. It is the second dam in this case that Honduras is going to build with the support of China. But it seems that this decision by Honduras to cut ties with Taiwan was a precondition for the Chinese financing that they are going to receive”, comments Margaret Myers, director of the Asia and Latin America Program at Diálogo Latinoamericano.

“It is an objective on the part of China that is political. They are trying to convert each one of these friends that Taiwan maintains in the region, focused on the dissolution of Taiwanese power in the world and it is another example of Chinese success in achieving that objective, “says the specialist.

Pending China’s compliance, Hondurans will live with blackouts of three to four hours, depending on the region of the country.