Supporting the hydropower sector in Panama, a country with high renewable energy potential

Foutain Intertrade Corp. is a joint venture between Norway’s Agua Imara and Panama’s Credicorp Group Inc. (CCG). Agua Imara is specialized in the design, construction and operation of renewable energy projects, with a focus on hydropower, in Sub-Saharan Africa and Central America. CCG is a holding company with equity investments in the sectors of financial services, trust services, insurance and real estate.

Proparco’s loan will contribute to financing the construction and operation of a 58 MW run-of-river hydropower plant located on the Chiriqui Viejo River to the west of Panama, near the border with Costa Rica. The project comprises the construction of a 60-hectare reservoir, a 45 m-high dam, a 2 km-long open channel, two power plants, each with a capacity of 28 MW, a 2 MW turbine for the ecological flow and a 3 km-long transmission line.

This project will reduce Panama’s dependence on fossil fuels and will contribute to promoting renewable energies in a country with high hydropower potential. It will have a positive impact on the climate by reducing greenhouse gas emissions by 160,000 tons of CO2 a year. It will also contribute to reducing the cost of electricity. A reforestation program will be implemented to compensate for the loss of the flooded area.