President starts up 267MW Pavana III plant

Honduras' President Ricardo Maduro officially started operations Friday of the US$190mn, 267MW Pavana III thermoelectric plant in Choluteca department, the presidential news service reported. Local company Luz y Fuerza de San Lorenzo (Lufussa) built the plant, which is in the municipality of Agua Caliente. Lufussa began operations of Pavana I in 1995 and Pavana II in 1998. Pavana III was designed to meet growing domestic demand, particularly in the industrial sector, the statement said. Lufussa has a 12-year power purchase agreement (PPA) with Pavana III offtaker, state power company Enee. Pavana III will lower electricity costs in the region, reduce environmental pollution and save Enee some 760mn lempiras (US$40.6mn) annually, Lufussa's president Chucry Kafie said. During the government's 2001 tender for 410MW in new short-term capacity, Lufussa offered the most competitive rate at US$0.04/KWh, compared to up to US$0.18/kWh under existing contracts held by Enee for thermoelectric generation. Honduras can now meet its 900MW domestic demand and, within six months, the government expects to begin exporting electricity to neighboring countries "at competitive international prices," the statement said.