27 January 2006 – In a meeting yesterday with Panama’s President Martin Torrijos, the AES Corporation announced plans to construct a $320m hydroelectric power plant in Panama.
When completed, the 150 MW plant will increase AES’s total generation capacity in Panama to 620 MW, making AES the largest producer of electricity in the country, based on today’s market analysis.
The plant, Changuinola 75, will be located in the Changuinola River Basin, approximately 220 miles northwest of Panama City in the Province of Bocas del Toro. The project includes a ten-year power purchase agreement with Panama’s largest utility, Union Fenosa SA. AES has begun the engineering and geo-technical work and plans to begin construction in 2007. The plant is scheduled to be operational by mid-2010.
“This plant will provide a new, clean and low cost source of electricity for Panama at a time when the country is experiencing extremely high energy costs and high demand growth,” said Andres Gluski, president of AES Latin America, at today’s meeting at the Palacio de las Garzas (Presidential Palace) in Panama. “It will integrate the Province of Bocas del Toro into the national electric system of Panama, providing its people with a more reliable and affordable source of electricity. It will also reduce the nation’s traditional dependence on imported oil.”
AES has been doing business in Panama since 1999. The company currently manages and operates four hydroelectric power plants in Panama.