Credit Shortage for Panamanian Hydroelectric Plants

©image: acp.gob.pa

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%.”

Source: martesfinanciero.com

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