Company name
Térmica del Noreste, S.A.
Project number
PN1024B-01
N/A
E&S category
N/A
Country
Panama
Sector
Energy
Status
Completed
Disclosed date
05/29/2005
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
09/13/2005
Approval date
09/13/2005
Signed date
N/A
Sponsoring entity
N/A
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
N/A
Financing amount
USD $ 1,850,000
Currency
USD
Project scope and objective
The purpose of the project is to increase the available generation capacity at the main power plant (Santa Fé) by purchasing a unit in addition to the three existing units in operation. Going forward, this will ensure sufficient backup capacity for the company to meet growing demand in the remote areas it serves, which are not on the National Interconnected System.
Provide long-term financing: This second operation complements the IIC's first loan to Ternor granted in 2002 to finance the start-up of operations; that loan matures in 2010, as will the second.
Support a high value added industry: Power generation is a process that transforms resources and requires technology and infrastructure to do so. Its added value lies in providing power to remote communities with limited economic activity and in the multiplier effect achieved by improving the standard of living and opening opportunities for new productive activities in rural areas.
Strengthen a medium-size company: The project will help the company manage growth and provide it with reasonable backup power generation potential and the ability to meet future demand. This will protect many jobs, which is unusual for power companies because most power plants are not as labor-intensive as Ternor, which manages thirteen plants in several provinces and islands in the Republic of Panama.
Generate business for SMEs: Companies that transport fuel overland and by sea will benefit from serving Ternor's thirteen facilities throughout Panama. Companies that supply spare parts and occupational health and other services will also benefit from the company's day-to-day operations.
Promote best production practices: Acquiring new equipment with the same features as the equipment already installed at the main power plant (Santa Fé) will not only ensure consistent, smooth operations and provide technological upgrades but will also help the company become a model of steady growth and efficient power generation that will benefit overall governance and operating productivity.
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Contact information
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Client Contact
N/A
PHONE NUMBER
N/A
POST OFFICE ADDRESS
N/A
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesIndividuals or communities can submit complaints and concerns related to environmental, social, or corporate governance issues to the Management Grievance Mechanism by e-mailing mgm@iadb.org or by calling +1 202 312 4040.
As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org or calling +1(292) 623-3952.
For inquiries, comments and information requests about the project
Request informationLearn more about how we provide private-sector solutions in the region .
Environmental and social review
IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.
ENVIRONMENTAL AND SOCIAL REVIEW
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