PCM-067-2019
Poder Ejecutivo
- Decree: PCM-067-2019
- Published: January 10, 2020
- Issuing body: Poder Ejecutivo
- Gazette: 35,145
- Category: Administrative
Summary
This decree intervenes in the National Electric Energy Company (ENEE) for operating at a loss and failing to adequately fulfill its functions. It appoints an Intervention Commission to manage the company, stabilize its finances, implement electricity law, and present a plan to divide it into a parent company and three subsidiaries for generation, transmission, and distribution.
Considerations
That in accordance with Article 245, numerals 2 and 11 of the Constitution of the Republic, it corresponds to the President of the Republic to manage the general administration of the State, and among his other powers is the power to direct the general policy of the State and represent it, issue Agreements, Decrees and issue Regulations and Resolutions in accordance with the Law.
That it corresponds to the President of the Republic to maintain and eliminate public services, as well as to take the necessary measures for their proper functioning, as established in Article 245, numeral 35 of the Constitution of the Republic.
That in accordance with the provisions of Article 247 of the Constitution of the Republic, the State Secretaries are collaborators of the President of the Republic in the guidance, coordination, direction and supervision of the organs and entities of the national Public Administration in the area of their competence.
That as established in Article 11 of the General Law of Public Administration, the President of the Republic has charge of the supreme direction and coordination of the Centralized and Decentralized Public Administration. The President of the Republic in the exercise of his functions may act by himself or in Council of Ministers.
That according to Article 14 of the General Law of Public Administration amended by Legislative Decree No. 266-2013, it states that the President of the Republic, by Executive Decree in Council of State Secretaries, can issue within the Centralized Administration the rules required for: 1)…;2)…;3)…; 4). 5) Organize those dependencies that the efficiency of Public Administration demands…
That it is the duty of the State to regulate the activities of generation, transmission and distribution of electrical energy that take place in the national territory, establishing the indispensable conditions so that the country's electrical demand is supplied at minimum economic cost and so that the national electrical system is operated economically, safely and reliably.
That the General Law of Public Administration in Articles 98, 99 and 100, amended by Legislative Decree 266-2013, establishes that: The Executive Power may intervene, totally or partially, all entities, organs or units of public administration of the entity that operate with losses, do not comply with their functions or do not adequately provide the services for which they were created. If intervention is to proceed, it shall be in charge of an intervention commission that will be responsible for the administration of the intervened entity, organ or unit and will carry out an evaluation of the same with the advice of the Superior Court of Accounts (TSC). Said commission shall have the powers that correspond to the administrators thereof, exercising their legal representation. The act of intervention is just cause for the Commission to proceed to suspend personnel, terminate employment contracts or revoke personnel Agreements that are deemed unnecessary.
That the situation of the country demands that both the organization and the operating rules of the country's electrical industry be updated, incorporating modern structures and practices, for which a new legislation of the electrical sector is required.
That the National Electrical Energy Company (ENEE) is operating at a loss and is not complying with its functions nor adequately providing the services for which it was created, for which reason it is necessary to take the pertinent measures aimed at intervening in it with the purpose of reducing and eliminating said losses that currently affect the operational and financial capacity of the Institution.
Articles
To intervene in the National Company of Electric Energy (ENEE), for reasons of public interest and being operated with losses that cause strong negative impacts on the finances of the Institution and of the State, appointing for this purpose an Intervention Commission for the remainder of the current government period, with the powers established in the General Law of Public Administration, which shall be in charge from its appointment of the administration of the National Company of Electric Energy (ENEE), as an intervened entity, to execute administrative actions aimed at achieving the improvement of its administrative, operational, and financial situation. The Intervention Commission has the powers established in Article 100 as reformed by Legislative Decree No. 266-2013 of the General Law of Public Administration, those established in this Executive Decree, and others that by legal norm are within its competence.
The Intervention Commission has the legal representation of the National Company of Electric Energy (ENEE) and shall be freely appointed and removed by the President of the Republic, entering into functions from the date of its appointment. For the fulfillment of its functions, the Intervention Commission is authorized to request the collaboration, participation, and integration of other public or private institutions that it deems pertinent.
The mission of the Intervention Commission contains the following actions:
- 1)
To achieve financial stabilization of the National Company of Electric Energy (ENEE) through the recovery of losses that have diminished the proper functioning of the Institution;
- 2)
The full implementation of the General Law of the Electric Industry;
- 3)
To submit to the President of the Republic, State Secretary in the Office of General Coordination of Government, State Secretary of the Presidency, as well as to the State Secretary of Finance, monthly reports of evaluation, progress, and reform proposals of the intervened body; and, 4. Those others established in the General Law of Public Administration and others that by legal norm may additionally correspond to it.
The Intervention Commission must submit to the President of the Republic, State Secretary in the Office of General Coordination of Government, State Secretary of the Presidency, as well as to the State Secretary of Finance, a Progress Report of the actions taken in the National Company of Electric Energy (ENEE), within a maximum period of sixty (60) calendar days, including the effect of the interim measures implemented aimed at achieving administrative, operational, and financial balance of the Institution, as well as recommendations for its restructuring, modernization, and improvement. The Executive Branch, in view of the report of the Intervention Commission, must issue the decisions that are necessary, deducing the responsibilities that may be applicable.
The Intervention Commission is authorized and instructed to present, within a maximum period of 90 days, to the President of the Republic, State Secretary in the Office of General Coordination of Government, State Secretary of the Presidency, as well as to the State Secretary of Finance a Plan for the Spin-off of the National Company of Electric Energy (ENEE), which must create a parent company and three (3) subsidiaries, each developing individually the activities of generation, transmission, and distribution respectively.
To authorize the allocation of necessary funds for the execution of the functions of the Intervention Commission and its technical assistance team, which shall come from the current budget of the National Company of Electric Energy (ENEE) and others that the State Secretary in the Office of Finance may identify.
The Board of Directors, the General Manager, Internal Audit Department, Administrative and Financial Management, which includes the Departments of Human Resources, Contracts, and Legal Department of the National Company of Electric Energy (ENEE) are suspended in the exercise of their functions, remaining at the disposal of the Intervention Commission during the validity of this Decree.
This Decree shall enter into force as of the date of its publication in the Official Journal "La Gaceta." Given in the city of Tegucigalpa, on the twenty-sixth (26) day of the month of December of the year two thousand nineteen (2019). JUAN ORLANDO HERNANDEZ ALVARADO CONSTITUTIONAL PRESIDENT OF THE REPUBLIC MARTHA VICENTA DOBLADO ANDARA STATE SECRETARY IN THE OFFICE OF GENERAL COORDINATION OF GOVERNMENT, BY LAW EBAL JAIR DÍAZ LUPIAN STATE SECRETARY IN THE OFFICE OF THE PRESIDENCY HECTOR LEONEL AYALA ALVARENGA STATE SECRETARY IN THE OFFICES OF GOVERNANCE, JUSTICE AND DECENTRALIZATION LISANDRO ROSALES BANEGAS STATE SECRETARY IN THE OFFICES OF FOREIGN AFFAIRS AND INTERNATIONAL COOPERATION REINALDO ANTONIO SÁNCHEZ RIVERA STATE SECRETARY IN THE OFFICES OF DEVELOPMENT AND SOCIAL INCLUSION MARÍA ANTONIA RIVERA PRESIDENTIAL DESIGNATE, IN CHARGE OF THE STATE SECRETARIAT IN THE OFFICE OF ECONOMIC DEVELOPMENT ROBERTO ANTONIO PINEDA RODRÍGUEZ STATE SECRETARY IN THE OFFICES OF INFRASTRUCTURE AND PUBLIC SERVICES JULIAN PACHECO TINOCO STATE SECRETARY IN THE OFFICE OF NATIONAL SECURITY FREDY SANTIAGO DIAZ ZELAYA STATE SECRETARY IN THE OFFICE OF NATIONAL DEFENSE ALBA CONSUELO FLORES STATE SECRETARY IN THE OFFICE OF HEALTH ARNALDO BUESO HERNÁNDEZ STATE SECRETARY IN THE OFFICE OF EDUCATION CARLOS ALBERTO MADERO ERAZO STATE SECRETARY IN THE OFFICES OF LABOR AND SOCIAL SECURITY MAURICIO GUEVARA PINTO STATE SECRETARY IN THE OFFICES OF AGRICULTURE AND LIVESTOCK ELVIS RODAS STATE SECRETARY IN THE OFFICES OF NATURAL RESOURCES AND ENVIRONMENT ROCIO IZABEL TABORA MORALES STATE SECRETARY IN THE OFFICE OF FINANCE KARLA EUGENIA CUEVA AGUILAR STATE SECRETARY IN THE OFFICE OF HUMAN RIGHTS ROBERTO ANTONIO ORDOÑEZ WOLFOVICH STATE SECRETARY IN THE OFFICE OF ENERGY NICOLE MARRDER AGUILAR STATE SECRETARY IN THE OFFICE OF TOURISM NELSÓN JAVIER MARQUEZ EUCEDA STATE SECRETARY IN THE OFFICES OF COMMUNITY DEVELOPMENT, WATER AND SANITATION (SEDECOAS) GABRIEL ALFREDO RUBÍ PAREDES STATE SECRETARY IN THE OFFICES OF RISK MANAGEMENT AND NATIONAL CONTINGENCIES
Related laws
- Decreto Ejecutivo No. PCM-067-2019 — Intervención de la Empresa Nacional de Energía Eléctrica (ENEE) (Decree PCM-067-2019, 2019)
- Executive Decree PCM-067-2019 through which the National Electricity Company (ENEE) is intervened — This decree temporarily intervenes in the National Electrical Energy Company (ENEE) because it operates with serious financial losses. A special commission takes full control of the company to stabilize it, modernize it, and reorganize it into three separate companies (generation, transmission, and distribution). (Decree 266-2013, 2020)
- Decreto Ejecutivo No. PCM-054-2020 — Creación de la Unidad Ejecutora del proceso de Escisión de la Empresa Nacional de Energía Eléctrica (ENEE) — This decree creates a special unit responsible for dividing the state electricity company (ENEE) into three separate companies: one for generation, another for transmission, and at least one for distribution. The unit will have experts in energy, finance, and law to coordinate the split, develop work plans, and transfer necessary assets and permits to the new companies. (Decree PCM-054-2020, 2020)
- Decree 128-2019 by means of which the Executive Power is authorized to issue Sovereign Bonds of the Republic of Honduras through the Secretariat of State in the Office of Finance (SEFIN) — Decree 128-2019 authorizes the Ministry of Finance (SEFIN) to issue sovereign bonds from Honduras in international markets for up to 900 million dollars to finance state projects. This measure allows the government to obtain resources for public investment and external debt management. (Decree 128-2019, 2020)
- Framework Agreement for the Competitiveness of the Agri-food Chain in the Cocoa Sector between the Secretariat of State in the Offices of Agriculture and Livestock and the Private Sector (2019 - 2022) — This agreement (2019-2022) between the government and private sector aims to improve the competitiveness of Honduras' cocoa supply chain, focusing on fine and aromatic cocoa producers. It commits both sectors to strengthen actions that increase the cocoa sector's competitive advantages while respecting human rights.