Credit Shortage for Panamanian Hydroelectric Plants

Restrictions on credit are affecting the development of Panamanian hydroelectric plant construction projects.

Wednesday, April 15, 2009

In Panama, the current 1,632 megawatt supply of electricity covers current demand with very little to spare, reason for which it seeks to increase supply by 47.4% for 2012.

Currently, there are projects in the stages of final analysis and construction for $2.264 billion, which would provide 996 megawatts to the country’s electrical system.

An analysis in Martes Financiero reported that several projects are having difficulty getting the necessary financing to continue. The $135 million Caisán hydroelectric project is highlighted as an example because it has requested an extension due to financing reasons. According to company officials, "It has become almost impossible to access funds in local banks because the requirement for participation in private investment or private equity has been raised from 35% to 50%.”

More on this topic

Hydroelectric Station to Issue Bonds for $90 million

September 2014

The subsidiary company of Panamá Power, operator of the hydroelectric El Alto, is seeking financing through a six year term bonds placement in the Panamanian stock market.

Hydro Caisán published on the website of the Stock Exchange of Panama the preliminary prospectus of the issue, which details the characteristics of the placement and the uses for the $90 million it seeks to raise.

Funding Support for Mini Hydropower Station

August 2014

CABEI has provided a partial credit guarantee of $669,000 to Financiera de Occidente to hedge financing of the mini hydropower project being developed by Ingenio Magdalena in Guatemala.

The Central American Bank for Economic Integration (BCIE) through the project "Accelerating Investments in Renewable Energy in Central America and Panama (ARECA)", has provided a partial credit guarantee to Financiera de Occidente SA (Fidosa), for an amount of U.S. $669,000 to hedge the financing for the development of a small renewable energy project using hydraulic technology.

$2.3 Billion in Hydroelectric Projects

June 2009

The hydroelectric sector in Panama is a boiling pot where scores of projects are cooked, garnished with failures and speculation.

Eighty-nine concession requests are pending, 43 projects have had permissions denied or canceled by the developers and another 31 projects are in different phases of design or construction.

Panama monitoring sale of Union Fenosa to Gas Natural

January 2009

Edemet Edechi, the main electricity company in Panama, is 51% owned by Union Fenosa.

The National Public Services Authority of Panama reported that it is closely following the $25 million sale of the Spanish company, Union Fenosa, to another Spanish company, Gas Natural.