Panama is working to increase its economic partnerships with China, which it hopes will finance more energy and infrastructure projects, President Juan Carlos Varela said in a recent interview.

Panama established diplomatic ties with China in June, following the Central American country’s break with longtime ally Taiwan. China is the second-largest user of the Panama Canal, after the United States.

Chinese companies could replace Brazil’s Odebrecht  in financing Panama’s Chan 2 hydroelectric plant. Panamanian Finance Minister Augusto Arosemena told Reuters his country would be working with the Chinese on hydroelectric projects in the future.

Panama said in December it would cancel a contract with Odebrecht, which has admitted to bribing officials there and in other countries to obtain government contracts, and prevent the company from participating in public bids.

Varela said he expected the main projects with China to be in energy and transportation.
The two countries are also working to bring direct flights from China to Panama after four Chinese airlines came to Panama last year.

“We set an agreement to start working on direct flights from China to Panama so they can connect with all of the Americas through Panama,” Varela said.

Besides its embassy in Beijing, the president said the country was planning to open a consulate in Shanghai and had applied to open another in the southern city of Guangzhou.