Region: Latin America and Caribbean
Sector: Energy and Power
Brief on IFC's PPP advisory support to the government of Panama on the privatization of its electricity generation and distribution companies created from the restructuring of its vertically-integrated utility, Instituto de Recursos Hidraulicos y de Electrificacion (IRHE).
IFC advised the government of Panama on the privatization of its electricity genera- tion and distribution companies created from the restructuring of its vertically-inte- grated utility, IRHE. The privatization resulted in an immediate private capital inflow of $600 million and 10 percent reduction in retail tariffs, as well as more than $1 billion in private investment in the privatized companies. The transaction was com- pleted in 1999.
Strategic stakes in the generation companies were sold for a total of $302 million: 49 percent of Fortuna was awarded to a Coastal Power and Hydro-Quebec consortium for $118 million, 49 percent of Bayano and Chiriqui was sold to AES Corporation for $92 million, and 51 percent of Bahia las Minas was awarded to Enron International for $92 million. Strategic stakes in the distribution companies were sold for a total of $301 million. Union Fenosa acquired Metro Oeste and Chiriqui for $212 million, and Constellation Power acquired Noreste for $89 million.
Updated: June 26, 2022