As part of the company's recapitalization plan, the Panamanian government will provide up to $48 million to the Bahía Las Minas project.
The state has had to adopt, for the third time in five years, an agreement to support the thermal electricity station and try move a complicated investment plan forward.
"With the 49 % stake held by the state , the government of Ricardo Martinelli pledged up to $48 million on a plan to recapitalize the company. " " ... Suez Energy International Luxembourg SA will have to provide up to 52 million dollars as the majority shareholder."
Although the market is not growing significantly, there is still investment being made in new terminals for the storage and supply of the fuel.
"Recently the fuel terminal Melones, located in the Pacific and rated by experts as "state of the art" went into operation. The investment in this project has been estimated at between $60 million and $90 million.
$165 million have been invested in the coal conversion project operated by Bahia Las Minas (BLM).
The project, in which the state holds a 49% stake, is more than a year behind schedule because of problems in the construction of the boiler.
"BLM was forced to buy more expensive energy in the local electricity market in order to fulfill the supply contract with Elektra Noreste SA (ENSA), effective January 1, 2010”, noted an article in Prensa.com.
Generating companies have presented their surplus energy offers to distributors around the country.
As established in the Energy Policy implemented by the Martinelli administration, energy generating companies have made available to distributors 100% of their surplus that has not been previously contracted, for use in the second quarter of the year.
GDF Suez Energy’s $140 million coal reconversion energy plant would start operating by the end of June.
The project will generate energy using coal imported from Colombia. The raw material will be unloaded at the storage facilities of “Cemento Panamá”, in the port of Bahía las Minas, close to the plant.
Today, GDF Suez began testing the 120MW plant, adding that they have enough coal reserves to operate for one month.
"Banco Nacional" will finance the project "Bahía Las Minas", so it can finalize its construction.
In addition to funding by Banco Nacional, the company will contribute an additional $40 million to finish the boiler.
Philippe Delmotte, General Manager of "Bahía Las Minas", considers that "... with these $80 million, we'll have enough funds to finish the project. The boiler, capable of outputting 120 MW, could be ready in April 2010".