On 17 December 2024, in San Pedro Sula, the Central American Bank for Economic Integration (CABEI) and the Government of Honduras signed a US$300 million financing agreement for the construction of the El Tablón Multipurpose Dam, Stage I.

The dam will be located in the department of Santa Bárbara, in the lower basin of the Chamelecón river, and will have a storage capacity of approximately 255 million cubic metres of water. The project aims to mitigate flooding in the Sula Valley and surrounding areas, protect key infrastructure and promote economic development in agricultural and industrial areas.

It is estimated that more than two million people in the Sula Valley and surrounding communities will benefit from this initiative. In addition to flood protection, the dam will provide renewable energy for approximately 17,805 users and contribute to the supply of drinking water and irrigation systems in the northern region of the country.

Next steps

By January 2025, the feasibility studies, including the basic design and tender documents, are expected to be delivered. In February, the international public tender will be launched for the contracting of the works and their supervision. The project will be developed in two stages: the first will focus on the construction of the dam, the powerhouse and the electrical interconnection; and the second will include complementary works such as irrigation systems and drinking water supply.

Strategic alignment

This initiative is aligned with CABEI’s Institutional Strategy 2025-2029 and with the Honduras Country Strategy 2022-2026, focusing on human development and environmental and social sustainability to improve the quality of life of the region’s inhabitants.

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