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Panama’s energy infrastructure is set for a significant upgrade following a landmark $300 million loan agreement between the European Investment Bank (EIB) and Naturgy Energy Group. This substantial financing, guaranteed by the Spanish export credit agency (CESCE), is dedicated to the modernization and expansion of the nation’s electricity distribution grids.
A Strategic Partnership for Grid Enhancement
The agreement, announced in mid-November 2025, represents the largest EIB loan ever extended to a private company in Central America. The funds will be channeled through Naturgy’s Panamanian subsidiaries, EDEMET and EDECHI, to directly address critical infrastructure needs. The primary objectives of the investment include enhancing grid reliability, boosting operational efficiency, and increasing resilience against climate-related challenges.
This initiative is a core component of Naturgy’s broader investment strategy in Panama. The company has already committed $500 million for the 2022-2026 period and has outlined plans for an additional $600 million investment from 2026 to 2030, pending regulatory approval. This long-term commitment underscores a dedicated effort to ensure a stable and sustainable power supply for the country.
Boosting Service Quality and Sustainability
Key outcomes expected from the project include a significant reduction in both technical and commercial energy losses, as well as the connection of new users to a more robust and efficient network. By strengthening the distribution grid, the project also facilitates the integration of more renewable energy sources into the national power system, aligning with regional sustainability goals.
Leaders from the partner organizations highlighted the project’s importance. EIB President Nadia Calviño described the investment as a key step toward providing “cleaner and more secure energy” for Panama. Echoing this sentiment, Naturgy CEO Francisco Reynés emphasized that the financing reinforces the company’s commitment to improving service quality and promoting sustainable development within the country.
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