EMCE and Lufussa managed to sign new contracts with the government of Carlos Flores (1998–2002), which included tax exemptions for up to five years and the payment of fixed and variable charges, the former independently of whether energy was actually being produced, as it is typically the case in Power Purchase Agreements.
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Under the Presidency of Carlos Flores, decrees No. 85-98 and 267-98 were approved in 1998 by the Honduras Congress with the aim of promoting the development of renewable energy-generating plants.
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