Termica del Noreste S.A. II

repaid

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.