The government has announced that it will revise all contracts awarded and projects that are not being run will be reassigned.
State institutions responsible for granting operating licenses to mining, forestry, clean energy generation and hydrocarbon projects, have a deadline of two weeks to complete the collection of all permits, licenses and concessions granted in the past two governments and present a report to President Juan Orlando Hernandez, who will decide whether or not to revoke the licenses that have not been executed in order to reallocate the revoked contracts to new investors.
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."
The Government has managed to get Elcosa to sign a contract under the same terms agreed with Lufussa, the other main thermal generator.
The agreement with Executives from Electricidad de Cortés, S.A. (Elcosa) means that this company will continue to provide a total of 80 megawatts at a lower price than originally required by the thermal generator.
Generators will be prevented from exporting energy if they dont agree on a price for the country similar to the regional reference electricity price.
An article on Laprensa.hn reports that the new president of Honduras, Juan Orlando Hernández, has said they have still "not reached an agreement with the thermal utilities companies who supply power to the country.
President Oscar Arias eliminated by decree the obstacle that would have denied water licenses to hydroelectric producers. At the same time he's seeking more private investment in the sector.
"With the decree the government has eliminated the problem and now there is no obstacle to increasing private participation in the electrical market," said Roberto Dobles, the energy and environment minister.
Right in the middle of an energy crisis, this country is allowing its hydroelectric power company concessions to expire.
The first concession to use water for producing electricity has expired This means the owner of the el Cedral plant in Ciudad Quesada must shut it down. This project has been providing energy in the north since the early 1960s.
As well, three other permits are due to expire this year.
The construction arm of the business empire of Mexico's Carlos Slim is among several companies that have shown interest in Guatemalan government plans to build five hydroelectric plans with a total capacity of 418 megawatts.
The government also hopes to construct five thermal plants, three of them fired by coal.