Government Seeks Hydroelectric Recovery

Two decades after selling 49% of the shares of the Bayano hydroelectric dam to AES, the Panamanian government is preparing to begin negotiations to buy the shares held by AES.

Tuesday, October 29, 2019

The authorization for the government to begin negotiations was completed through Cabinet Council Resolution No. 106 of October 28, which endorses the start of the efforts, which aim to draw a roadmap to transfer the hydroelectric Bayano to the State.

Hector Alexander, Minister of Economy and Finance (MEF), told that "... the measure is part of a plan on the use of water for human consumption and of the Panama Canal Authority (ACP)."

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As soon as the hydroelectric plant is fully owned by the ACP, the authorities plan to make several investments in infrastructure to bring water from Lake Bayano to Lake Alajuela.

Alexander added that the plans are "... to build 80 kilometers of pipelines that would connect both lakes and that the ACP would make the investment. But at this moment I do not know the amount of that investment and what would have to be paid for the purchase of 49% of the shares of AES."

According to the latest official reports, between January and August 2018 and the same period in 2019 the generation of electricity from hydraulic sources in the country decreased by 40%.

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