IIC Finances Photovoltaic Power Plant in Panama
Loan of US$11.9 million will fund first private-capital photovoltaic project in Panama
Washington, D.C., February 4, 2015 – The Inter-American Investment Corporation (IIC) approved a loan of up to US$11.9 million to Divisa Solar 10MW S.A. to fund the construction, development, and commissioning of a photovoltaic power plant with nominal capacity of 9.9 MWp in the province of Coclé, Panama.
The power that the project generates will be sold on the spot market through the Centro Nacional de Despacho, the country’s power wholesale market.
The total cost of the project is US$17.8 million, which includes building a 2.8-km transmission line for carrying the power to the connection point agreed upon with EDEMET, one of Panama’s three power distribution companies.
“Through this operation, the IIC supports the development of non-conventional renewable energy projects, thereby contributing to the diversification of Panama’s power grid. The project will help prevent the emission of greenhouse gases to the tune of 4,850 tons of CO2 equivalent annually, which amounts to the annual emissions of 1,000 automobiles,” said Margarita García de Paredes, IIC lead investment officer in charge of the operation.
Divisa Solar was created by ECOSolar with the specific purpose of developing, building, and operating the photovoltaic power plant in Coclé.
“From the start of our talks with the IIC, we realized that we shared the necessary values and principles to be able to carry out this pioneering project in Panama and Central America. With the IIC’s approval of this loan, a new horizon is opened up where values like respect for the environment and social inclusion manifest themselves in a tangible asset that is also capable of generating power that is competitive, reliable, and respectful toward the environment,” said Alberto Rabanal, CEO of ECOSolar.
ECOSolar is a solar power company with vast knowledge and experience in the solar power sector and in the Latin American region. As part of Grupo ECOS, ECOSolar manages solar investment vehicles with the goal of attracting investment and becoming an independent energy producer. The company invests in a number of solar farms and solar power companies in Mexico, Guatemala, Panama, Colombia, Peru, Chile, and Brazil and manages a portfolio of investment projects located throughout the region worth several gigawatts. Grupo ECOS was founded by Swiss investors committed to Latin America, and they focus specifically on that region. The group has a three-pronged approach, aspiring to sustainable development, as well as environmental and social responsibility. For more information, visit www.ecosolar.com.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). We help companies streamline their management processes and provide them with funding in the form of equity investments, loans, and guarantees, as well as technical assistance, advisory services, and innovative knowledge products. In 2013, the IIC approved 71 operations totaling $415.4 million. Since its inception in 1989, the IIC has approved approximately 800 direct loans to SMEs and financial intermediaries, for a total of $5.2 billion. An additional $3.0 billion has been mobilized through cofinancing and syndication agreements. For more information on the IIC’s activities, visit www.iic.org.
Contact: Margarita García de Paredes
Telephone: +1 (202) 623-3932 in Washington, D.C.