Daniel Arango Ángel, Executive President of ENSA Grupo EPM, Fernando Paniagua, Vice Minister of Finance in charge of the Government of Panama, Martha Durán, Executive Vice President of EPM Finance and Investment, Jorge Andrés Carrillo Cardoso, General Manager of EPM Group, Jordan Schwartz, Executive Vice President of the IDB Group, Soledad Rovira, General Manager of Scotiabank Panama and Tomás Bermúdez, IDB representative in Panama.
The project will increase access to electricity especially in rural areas
It is signed within the framework of PPP Americas, an event that brings together the main public-private initiatives in Latin America and the Caribbean
IDB Invest and Scotiabank Panama have granted a US$100 million loan to ENSA Grupo EPM (Elektra Noreste SA), an energy distribution company in the northeast of Panama, to increase access to electricity, especially for communities that lack this service in rural areas. The financial package includes US$50 million from IDB Invest and US$50 million from Scotiabank Panama.
The project, which will serve to support the investment plan to modernize and expand the electrical networks in ENSA’s concession area, has been signed within the framework of PPP Americas, the most important biannual discussion event on Public-Private Partnerships in Latin America and the Caribbean. The signing included the participation of Jordan Schwartz, Executive Vice President of the IDB Group, Tomás Bermúdez, IDB Representative in Panama; Jorge Andrés Carrillo Cardoso, General Manager of EPM, Daniel Arango Ángel, Executive President of ENSA Grupo EPM and Soledad Rovira, General Manager of Scotiabank Panama.
The project will improve and expand electrical services to rural and urban areas of ENSA’s concession area, benefiting more than 35,000 users, of whom nearly 5,000 lack access to electricity.
In this sense, Jordan Schwartz, Executive Vice President of the IDB Group, highlighted that “supporting the development of infrastructure services and increasing electricity service, mainly in rural communities and vulnerable populations, is part of IDB Invest’s commitment to scale up the impact in the region through the mobilization of private resources and in alliance with partners who share the goal of developing projects that improve people’s quality of life.”
Likewise, the project will support ENSA in the digitization of its electrical network, incorporating new technologies that will allow the company to achieve a more efficient distribution network and the deployment of smart and prepaid meters.
In this regard, Daniel Arango Ángel, Executive President of ENSA pointed out that, “this financing has as its main objective to continue the execution of our robust investment plan that focuses on bringing electricity service to the most remote communities within our concession area and continue advancing with the public lighting plan, expanding the network of smart meters and prepayment, in addition to other actions that have the firm purpose of continuing to guarantee a quality service to all our customers.”
Soledad Rovira, General Manager of Scotiabank, stressed the importance of being part of a social and sustainable initiative that will bring great benefits to the population in terms of access to basic services and improvement in quality of life. “This agreement is an example of the sustainable approach that the bank has and that earned us 5 awards this year from Global Finance magazine for our outstanding participation in financing and issuance of sustainable bonds. It is a source of pride to make financial tools and solutions available to our clients that facilitate their projects and that allow us to demonstrate our commitment to the development of Panama”.
In addition, IDB Invest will provide technical advisory services to reinforce ENSA’s gender equality strategy, establishing innovative actions that adopt and further promote inclusion practices in its workforce. Likewise, the project will support the incorporation of a gender perspective in ENSA’s work with the communities, particularly when implementing new electrification projects and new connections.
The operation is expected to contribute to five United Nations Sustainable Development Goals (SDGs): Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Climate Action (SDG 13) and Partnerships for the Goals (SDG 17).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects so that they achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of US$16.33 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that respond to the needs of its clients in a variety of sectors.
About ENSA
ENSA is a human team of more than 550 direct collaborators and 2,000 indirect employees in charge of distributing and marketing electricity to more than 510,000 clients in East Panama, Colón, Darién, the Guna Yala Region and the Pacific islands. Its concession area represents 43% of the country’s electricity customers, with a population of 1.8 million people and a service territory of 29,000 square kilometers with 12,000 km of distribution lines.
ENSA has a solid financial reputation at a local and international level, which has allowed Fitch Ratings, one of the most important risk rating agencies worldwide, to issue and ratify the BBB stable perspective rating internationally, and the AAA stable perspective rating locally, being one of the best ratings within the Panamanian business sector. ENSA is a subsidiary of Grupo EPM.
About Scotiabank Panama
Scotiabank is a leading bank in the Americas. Inspired by our corporate purpose, “For Our Future,” we help our clients, their families, and their communities succeed through a full range of advice, products, and services in the personal and commercial banking, wealth management, private, corporate, and investment banking, and capital markets sectors. With a team of more than 90,000 employees and more than $1.3 trillion in assets (as of April 30, 2023), Scotiabank is listed on the Toronto Stock Exchange (TSX: BNS) and the New York Stock Exchange (NYSE: BNS). For more information, visit http://www.scotiabank.com and follow us on Twitter @Scotiabank.