CIFI, a non-bank financial institution with more than 15 years of experience in financing infrastructure and energy projects in Latin America and the Caribbean, led the structuring and financing for the Panasolar project, a photovoltaic plant located in Aguadulce, Province of Cocle, Panama.
With a total project cost of US$15M, CIFI provided US$10M in senior debt, funds that will go towards the development, construction and start of the operations of the 10 MW solar PV plant. The project will interconnect to the national grid at the Llano Sanchez Substation, and will provide energy through private power purchase agreements (“PPA”) to local Panamanian companies looking to reduce their carbon footprint.
During the construction phase, the project will create around 50 direct jobs for the community and is expected to boost the economic activity in the nearby communities, like Vista Hermosa and Llano Sanchez. As an example of its support for the community, Panasolar built a water well and donated a new water pump improving the Nueva Esperanza’s water supply system.
The project also provided the necessary local personnel (bricklayer, welder and assistants) for the construction of a security fence for the Centro Basico General Erick del Valle located in Llano Sanchez.
At a national level, the project contributes with increasing the production of reliable and sustainable energy, promoting Panama’s actions contained within the “2030 Panama National Strategic Plan” to combat climate change.
The project is well advance, with over 75% of the works completed, and is estimated to start operation next January.
Borrower: Panasolar Generation S.A.
Sponsors: Enrico Desiata (Italia), Fundación FRED, Kerotris (Italia) & Honduran Renewable Energy Financing Facility (HREFF)
Project Cost: US$15M.