CABEI to finance first natural gas Project in the region

The Central American Bank for Economic Integration (CABEI) approved a US$100.0 million loan to the AES Colón Project for the development of a liquefied natural gas-based power plant that will be constructed in Isla Telfers, Colón. The Bank’s contribution is an important part of the more than US$400 million that has been approved by other local and international financial entities.

The AES Colón Project involves a natural gas-based electrical generation plant with an installed capacity of 381 MW and includes its corresponding regasification terminal with a storage capacity of 180,000 cubic meters. As the first of its kind in Central America, the project represents a milestone in the development of regional energy markets due to its low investment and operation costs, its economies of scale and its limited environmental impact – it emits 95% less greenhouse gas than carbon and 34% less than bunker. 

In the Panamanian energy sector, demand is growing by 6.5% yearly as a result of the country’s robust economy and growing population. Currently the Panamanian energy matrix is 60% dependent on unstable energy sources. The AES Colón Project will support the system’s diversification and stability with a secure and sustainable energy source.

CABEI Executive President Dr. Nick Rischbieth stated that “by financing this natural gas project, the Bank is supporting long-term investment in the energy market with its regional character by increasing the Panamanian installed energy capacity, which will be connected to the Central American Electrical Interconnection System (SICA). 

AES President Mr. Miguel Bolinaga declared that “this project will permit us to support Panamanian growth with the conviction that we are contributing to adding value to the energy market and improving Panamanians’ quality of life.”

CABEI’s support reaffirms its commitment to Central American development by contributing directly to SICA’s regional agenda through energy efficiency improvement in Panama and the region as a result of using an environmentally friendly and competitive fuel.