The European Investment Bank (EIB) has approved a 300 million dollar credit to two Naturgy subsidiaries in Panama to expand the capacity of electricity distribution networks in the west of the country. This was announced on Tuesday in the Panamanian capital by the head of the financial body, Spanish Nadia Calviño. Naturgy operates under a concession and a mixed scheme (49% of the shares belong to the State) in Panama through the Empresa de Distribución Eléctrica Metro-Oeste, S.A. (Edemet) and the Empresa de Distribución Eléctrica Chiriquí, S.A. (Edechi), which are the beneficiaries of the credit and supply 58% of the more than 1.3 million customers in the country, according to official statistics. "This is a project that is guaranteed by the Spanish Export Credit Insurance Agency, and it will improve the reliability and efficiency of Panamanian electricity networks, it will reinforce the security of the supply and access to electricity for companies and families," affirmed Calviño at a press conference together with the Panamanian Minister of Economy and Finance, Felipe Chapman. Both officials emphasized that the loan only concerns the private operators, who requested financing from the EIB that was approved after passing a "triple filter of economic and financial sustainability, technical sustainability and environmental sustainability".
"This is not a loan to Panama, it is a loan to two private companies to address an investment in an expansion of the capacity of electricity distribution networks," stated Calviño. Chapman added that "while the Panamanian State is a shareholder" of Edemet and Edechi, the private operator "is the debtor and the one who has the obligations" with the EIB.
"Today here in Panama we are going to sign a loan of 300 million dollars to modernize the national electricity distribution network," said Calviño. "Panama is the most important market for the European Investment Bank's loans in the Central American region," affirmed Calviño without providing a figure, so she did not rule out that the multilateral bank will open a permanent office in the country. When asked about the EIB's interest in the plans for a train that would connect the capital with the border with Costa Rica, Calviño stated that the bank "is providing technical advice to analyze the economic, financial, environmental, social and technical feasibility of the project", on which "there is not yet any decision taken" by the institution. Once the feasibility studies are completed, "we would like to explore with the European Investment Bank" some financing, affirmed Chapman in turn, after highlighting that the railway is a State project of high priority for the Mulino government.
Calviño and the Vice President of the EIB, Ioannis Tsakiris, are on a high-level mission in Panama aimed at strengthening cooperation between the Bank and the government and business sector of the country in support of sustainable growth, climate action and inclusive development, indicated a communiqué from the multilateral organization.
