IIC Supports The Panamanian Energy Sector By Granting A Loan Of Up To US$1.85 Million
09/12/2005Washington, DC - On September 13, 2005, the Inter-American Investment Corporation (IIC) approved a loan of up to US$1.85 million to the infrastructure and utilities company Térmica del Noroeste S.A. (Ternor). This is the second time the IIC is providing Ternor with financial support to expand its power generation capacity. In 2002 the IIC granted Ternor a US$3 million loan to purchase and update fourteen small power plants in remote areas of the Republic of Panama.
The IIC loan will be used to finance the purchase of a 1.3 MW MAN thermoelectric generator for the Santa Fe plant. Forty-six percent of the power sold in Panama is generated in this area. Purchasing this generator will enable Ternor to expand its energy generation capacity for the next few years and meet growing demand. Financing from the IIC will help enhance the competitive position of this small power company that operates in isolated communities in the Republic of Panama that are not connected to the national grid (provinces of Darién and Kuna Yala, and islands in the Gulf of Panama). Providing individuals and small companies with access to reliable sources of energy will prevent deforestation and the use of other, obsolete, and less efficient sources of energy and foster economic growth by promoting more profitable activities at the individual and community level alike. This project also complements the rural electrification program financed partially by the IDB in Panama.
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: John Beckham/Juan Fonseca
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