Panama: $151 Million Electricity Contract Canceled

The State Power Generation Company (Empresa de Generación Eléctrica) has cancelled the contract with AES Panama to supply thermal energy, indicating the excessively high cost of supplying electricity.

Thursday, June 25, 2015

The early termination of the contract comes just three months after the company AES Panama began the tests to begin connecting the barge's electrical system .At the request of Egesa, the Varela administration approved the cancellation of the contract, invoking Article 73 of the Public Procurement Law 22, which allows "... the unilateral termination of contract in the public interest."

A source told Prensa.com that "... The agreement, for five years, became effective in January and to date has already accumulated about $13 million for energy generated which must be paid for by this administration, said a source. "

Prensa.com states that "... this newspaper learned that the price to be paid for the energy was very high. It was estimated that by the end of 2015 $60 million would have to be paid, which led to the early termination of the agreement in search of the best interests of the state. "

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