Well, it looks like the present government did not respect the request of the incoming President to hold off on awarding this huge concession. A unit of Brazilian conglomerate Odebrecht has won a concession to design, build, maintain and operate a 213 MW hydroelectric power station in Panama, company sources told Efe Friday.
State-owned utility Egesa awarded the project Thursday to the lone participant in the auction, Odebrecht Energy Luxembourg, which submitted a bid of $1.05 billion.
The Panamanian government was seeking a “strategic partner” for the construction of the Chan II hydroelectric plant.
Odebrecht Energy Luxembourg will hold a 77 percent stake in the project and the Panamanian government will have the remaining interest.
The government could boost its stake during the construction of the dam, which will be built in the western province of Bocas del Toro and is expected to start operating in 2019 or 2020, Panamanian daily La Prensa reported Friday.
The Odebrecht unit was awarded a 50-year concession to operate the plant.
Once the dam is up and running, it will account for 9 percent of the Central American country’s installed power generating capacity.
“This is a big project … the dam will be able to store water for more than 90 days, which is very important for the system” of national electricity generation, the daily Panama America reported, citing Panamanian Energy Secretary Vicente Prescott.
Hydroelectric plants meet 60 percent of Panama’s electricity demand.
The Panamanian government is striving to diversify the country’s energy matrix, including construction of a large wind farm by Spain’s UEP and small solar projects.
The delayed onset of the rainy season has caused water levels at the country’s main hydroelectric stations to drop sharply and forced President Ricardo Martinelli’s administration to adopt power-saving measures since March.
The goal is to avoid a recurrence of the energy crises that have racked Panama in recent years.
In 2013, the government responded to a severe drought and power shortage by temporarily shuttering schools nationwide. It also prohibited air-conditioning use for eight hours a day by commercial establishments and residences in a country where average temperatures exceed 30 C (86 F). EFE