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The investment programme will finance the extension and modernisation of electricity distribution networks in Panama. In particular, the project will improve the electricity distribution network operation and capacity to enable the connection of new system users (some of which likely low-income households) and reduce technical and commercial losses.
The aim is to strengthen Panama's electricity distribution system while ultimately helping to meet the country's increasing electricity demand.
The envisaged Project schemes (still to be better defined) are not expected to require a full Environmental and Social Impact Assessment (ESIA) in accordance with Panamanian Law (Law 41 of 1998 "General Environmental Law of the Republic of Panama" regulated by Executive Decree No. 123 of 2009). If they were in the EU, they would fall under Annex II and then screened as per applicable criteria and thresholds present in national legislation. The investments are expected to be mainly in urban and sub-urban areas therefore no major environmental or social impacts are expected. The EIB will review during appraisal the environmental and social capacity of the Promoters, including their organisation, processes and procedures. The exact requirements and status of the permitting procedures will also be further assessed during appraisal.
The Bank will require the Promoters to ensure that implementation of the Project will be done in accordance with the Bank's Guide to Procurement. Based on Promoter's information, both concessions were awarded as a result of a transparent international tender, hence the Project's procurement procedures are expected to follow the requirements related to operations in private sector. Procurement regime applicable to the project and Promoter's policies, procedures and capacity in this regard will be further assessed during appraisal.