Panama state-owned utility Egesa has awarded the concession to develop a 213MW hydroelectric power project in Panama to Odebrecht Energy Luxembourg, a subsidiary of Brazilian business conglomerate Odebrecht Group.
Odebrecht had to demonstrate its direct involvement in three other hydroelectric projects implemented in the form of design, supply and construction in the past 15 years. The company also had to provide a bond performance of US$75 million to support the development of the Chan II hydropower station.
The total investment is estimated at US$1.05 billion. The project involves the design, build,finance, operation and maintenance of the facility for a period of 50 years. It is expected to start operating in 2019 or 2020.
Odebrecht Energy Luxembourg will hold a 77 % stake in the project and the Panamanian government will have the remaining 23%.
The project, dubbed Chan II, will be located in the western province of Bocas del Toro. The project will account for 9% of the Central American country's installed power generating capacity. The 213MW plant could store enough water to produce electricity during 90 days.