IIC Approves A $3 Million Loan To Térmica Del Noreste, S.A. A Thermoelectric Power Generating Company

08/27/2002

On August 28, 2002, the Inter-American Investment Corporation (IIC) approved a $3 million loan to Térmica del Noreste S.A. (Ternor), the smallest thermoelectric power generating company in Panama. The project involves the purchase and modernization of thirteen small power plants in northeastern Panama that form the "isolated systems" not interconnected to the national electrical grid. This project will ensure the provision of continuous service in communities that currently receive electricity for just a few hours each day.

The project also involves replacing the existing diesel equipment with heavy fuel oil equipment in the largest plant, which accounts for approximately 45% of Ternor's total power generation. This technology change will enhance fuel efficiency, reduce fuel and maintenance costs, and lead to a more reliable system.

The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC's mission is to promote the economic development of its regional borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.

Contact: Steven Reed

Telephone: (202) 623-3981

Email: stevenr@iadb.org