Financing secure for Agua Imara dam project in Panama
Fountain Intertrade Corp., a joint venture between the Norwegian state-owned hydropower investment company Agua Imara and Credicorp Group Inc, has secured USD 155 million in debt financing for the Bajo Frio hydropower project (58 megawatts).
The 15-year term loan is arranged by three European development finance institutions and one commercial bank: Netherlands Development Finance Company (FMO) (USD 47.5 million), the French development finance institution PROPARCO (USD 35 million), Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) (USD 25 million), as well as the Norwegian bank DnB NOR (USD 47.5 million).
“Agua Imara is proud to announce that the Bajo Frio project now has its debt financing in place. The four financial institutions have all deep understanding and experience in international project finance. This ensures our commitment to the Panamanian society to have Bajo Frio in operation before the end of 2014,” says Einar Stenstadvold, CEO of Agua Imara, according to a press release.
Bajo Frio is a greenfield run-of-river dam to be built on the lower part of the Chiriqui Viejo River near the city of David in Panama. Agua Imara owns 50.1 per cent of the project. The Norwegian company has indicated that while there is subsistence farming in the project area, there are no affected indigenous people and no major environmental issues have been identified.
Agua Imara, was formerly called SN Power AfriCA, a spin-off company of SN Power, formed to focus investments on hydropower projects in Africa and Central America.