On June 26, 2026, Honduras enacted Decree No. 107-2026, approving the Law for the Strengthening and Protection of the Agro-Industrial Sector, Energy Projects, Tourism, Livestock, and Small Agricultural Producers. The new legislation establishes an enhanced legal framework aimed at protecting strategic sectors considered essential to the country’s economic development.
Key highlights include:
- Declaration of national interest, priority, and protection for projects covered by the law.
- Priority administrative processing and shortened timelines for various governmental permits and authorizations applicable to strategic projects, without affecting the legal framework governing environmental licenses.
- Enhanced legal protection against unlawful occupations, invasions, and blockades affecting strategic projects and infrastructure.
- Protection of the uninterrupted transportation of machinery, equipment, fuel, and other essential inputs required for the construction and operation of qualifying projects.
- Express application of the law to the energy sector, including energy infrastructure, easements, rights of way, transmission lines, substations, and power generation facilities.
The new legislation may have significant implications for investors, project developers, financial institutions, and project sponsors, particularly in infrastructure, energy, and project finance transactions, by strengthening the legal framework supporting the continuity and protection of strategic investments.
BLP will continue to monitor the implementation of this legislation and assess its impact on investment and infrastructure projects in Honduras.