IDB Invest, Scotiabank, ENSA to Help More than 35,000 People in Panama
• The project will increase access to electricity especially in rural areas.
• It’s 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 $100 million loan to ENSA Grupo EPM (Elektra Noreste S.A.), an energy distribution company in the northeast of Panama, to increase access to electricity, especially for communities that lack access to electricity in rural areas. The financial package includes $50 million from IDB Invest and $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 the Americas. Latin and the Caribbean. The event included the participation of IDB Group Executive Vice President Jordan Schwartz; IDB Representative Tomás Bermúdez; Jorge Carrillo, General Manager of Grupo EPM; and 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 noted that "supporting the development of infrastructure services and boosting power availability, mainly in rural communities and vulnerable populations, is part of IDB Invest's commitment to scale the impact in the region through the mobilization of private resources in alliance with partners that share the goal of developing projects that improve the 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 use of smart and prepaid indicators.
Daniel Arango Ángel said that "the main objective of this financing is to continue the execution of our robust objective investment plan that focuses on bringing electricity service to the most remote communities within of our concession area and continue advancing with the public lighting plan, expand the network of smart indicators 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 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 bank’s sustainable approach that this year earned five awards from Global Finance magazine for our outstanding participation in sustainable financing and bond issuances. It is a source of pride to make financial tools and solutions available to our clients that facilitate their projects, allowing us to demonstrate our commitment to Panama’s development."
In addition, IDB Invest will provide technical advisory services to reinforce ENSA's gender equality strategy, promote innovative actions that will 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 deal is expected to contribute to five United Nations Sustainable Development Goals (SDGs): Affordable and Clean Energy (SDG 7), Decent and Economic Work (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Action for the climate (SDG 13) and Partnerships to achieve the objectives (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 to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
ENSA is a human team with more than 550 direct collaborators and 2,000 indirect employees in charge of distributing and marketing electric power to more than 510,000 clients in East Panama, Colón, Darién, 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 locally the AAA rating stable outlook, 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. 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 scotiabank.com and follow us on Twitter @Scotiabank.