Under a public-private partnership framework, the Honduran government will seek to finance its connection to the ambitious gas pipeline project currently being built along the Pacific coast by the governments of Mexico and Guatemala.
During his most recent visit to the Guatemalan capital to meet with U.S. Vice President Joe Biden regarding the Alliance for Prosperity Plan, President Juan Orlando Hernández requested that his country be included in that energy initiative.
On March 13, the Honduran president will sign the agreement with his counterparts from Mexico, Enrique Peña Nieto, and Guatemala, Otto Pérez Molina.
Last year, the governments of these two countries launched the gas pipeline to facilitate the transport and trade of natural gas between the port city of Salina Cruz in the state of Oaxaca and Escuintla.
The project will span more than 600 kilometers and cost approximately 1.2 billion dollars.
Benefits
Jorge Ramón Hernández Alcerro, Minister for Government Coordination, told LA PRENSA that the interconnection to the Honduran border will extend more than 380 kilometers from the Mexican border.
He emphasized that this project is strategic and historic and will significantly lower the cost of electricity produced in Honduras.
«With that access to gas-generated energy, we’ll be able to create a processing industry that we’ve never had in this country before.» He explained that the cost of the project is significant and noted that each linear kilometer costs one million dollars, which is why a public-private partnership is the most feasible option.
The official explained that once the gas pipeline is in place, Honduras can begin producing energy within its borders; but it can also use that resource to process other products or raw materials.
«We have to figure out how it will be financed—whether through a public-private partnership or a combination of public-private investment and donations that might come from abroad to cover the cost of a gas pipeline like this one,» he said.
Businesses interested in investing in this project will be able to recoup their capital through a mechanism similar to tolls charged for the use of power transmission lines.
Positive
Fernando Cevallos, president of the Honduran Council of the Petroleum Industry (Cohpetrol), commented that the construction of the gas pipeline is beneficial for Honduras because any measure that reduces oil import costs is welcome, as this translates into savings for consumers.
Sigfrido Sandoval, a member of the Honduran Association of Mechanical, Electrical, and Chemical Engineers (Cimeq), said that this initiative is a positive step because it is less polluting and much cheaper than oil.
