The European Investment Bank (EIB) through EIB Global, its international partnership and development projects branch, and Naturgy Energy Group through its distribution companies in Panama, EDEMET, S.A. and EDECHI, S.A., have signed a 300 million dollar (approximately 260 million euros) framework loan to support the modernisation and expansion of electricity distribution networks in Panama. It is the largest loan ever signed by the EIB for a private company project in Central America.
The loan is guaranteed by the Spanish export credit agency Cesce. This guarantee has been developed jointly by the EIB and Cesce to support green projects led by Spanish companies outside Spain, contributing to the climate action and environmental sustainability goals promoted by the European Union at home and abroad.
The project will improve electricity supply reliability and efficiency in the country, connect new users, including low-income households, and enable greater integration of renewable energy sources. The agreement is an example of public-private collaboration to support energy transition and sustainable development in Panama.
The signing was attended by EIB Group President Nadia Calviño; Naturgy Chairman & CEO Francisco Reynés; Chairman of Compañía Española de Seguros de Crédito a la Exportación (Cesce) Pablo de Ramón-Laca; EIB Vice-President Ioannis Tsakiris; EU Ambassador to Panama Isabela Matusz; and Spanish Ambassador to Panama Guzmán Palacios Fernández.
Various members of the Panamanian government also participated in the event. Minister of Economy and Finance Felipe Chapman; Minister of the Presidency Juan Carlos Orillac; Minister of Trade and Industry Julio Moltó; Minister of Foreign Affairs Javier Martínez-Acha; Minister of Canal Affairs José Ramón Icaza; as well as Mayor of Panama Mayer Mizrachi; Secretary of Energy of the Government of Panama Rodrigo Rodríguez; General Administrator of ASEP Zelmar Rodríguez Crespo, as well as the board of directors of Naturgy Panama.
“With this financing, the EIB is supporting the modernisation of Panama’s energy infrastructure and strengthening regional energy integration. This is an example of how partnerships are key to providing citizens with access to cleaner and more secure energy,” said EIB President Nadia Calviño.
“This loan will strengthen Naturgy’s investments in Panama, and reflects our commitment and vocation to remain in the country. The new investments in Panama’s electricity grid will help improve the quality of service to our customers, security of supply and promote a more efficient, secure and sustainable energy model,” said Francisco Reynés, Chairman & CEO of the Naturgy Group.
Meanwhile Cesce Chairman Pablo de Ramón-Laca highlighted “the leadership of Spanish companies in the execution of relevant projects for the economic development of Panama”. He also underlined the importance of the agreement with the EIB, which “expands Cesce’s capacity to support and back the internationalisation of Spanish companies”.
“This partnership with Naturgy and Cesce reflects the EIB’s role as a catalyst for sustainable investment connecting Europe and Latin America. With this project, we are promoting the modernisation of the Panamanian electricity system and facilitating access to cleaner, more efficient and affordable energy for thousands of homes and businesses. It is a clear example of how the Team Europe approach and the Global Gateway initiative are making a real impact on people’s lives and contributing to a more sustainable and resilient energy future,” said EIB Vice-President Ioannis Tsakiris.
Modernising Panama’s electricity infrastructure for growth
This initiative represents a significant step forward in the development of Panama’s energy infrastructure. The investment programme will expand and modernise distribution networks across the country, reducing technical and commercial losses, while increasing the capacity and resilience of the electricity system. It will also facilitate the connection of new users and support the integration of renewable energies, especially solar energy. By improving grid operational efficiency and reliability, the project is expected to help reduce electricity costs and strengthen energy security, particularly for the benefit of the most vulnerable communities. This investment will contribute to long-term energy security, economic growth and climate change mitigation in Panama, while promoting European participation in Latin America’s sustainable energy transition.
The agreement makes a significant contribution to EIB Group’s climate action goals as set out in its Strategic Roadmap for the period 2024-2027 and the second phase of the Climate Bank Roadmap for the period 2026-2030.
Strengthening EU-Latin America cooperation in energy infrastructure
The operation is part of the European Union’s Global Gateway Investment Agenda in Latin America and the Caribbean, within the flagship initiative to strengthen the Central American Regional Electricity Market (REM). It contributes to meeting Panama’s Nationally Determined Contribution (NDC) under the Paris Agreement by enabling the integration of new renewable energy capacity and improving overall system efficiency. The project is an example of the EIB’s key role as a financial partner for European companies expanding sustainable infrastructure investment in Latin America.
In the same area, the EIB presented a new 1.15 billion dollar financing initiative to support investment in electricity grid integration across Central America at the recent EU-CELAC summit in Colombia. A financing package that will boost the construction and upgrading of transmission and distribution infrastructure and promote renewable power generation in Costa Rica, Panama, Honduras, Guatemala, El Salvador and Belize. The operation aims to support the region’s progress towards its energy transition and decarbonisation goals, while promoting access to reliable and affordable electricity supply.
General information
About EIB Global
The European Investment Bank (EIB) is the long-term lending institution of the European Union and is owned by the EU Member States. It finances investments that promote EU policy objectives.
EIB Global is the specialist branch of the EIB Group dedicated to increasing the impact of international partnerships and development finance, and a key Global Gateway partner. It aims to support around 115 billion dollars (100 billion euros) of investments by the end of 2027. EIB Global brings the EIB Group closer to citizens, companies and institutions through its offices around the world. Media photos of the EIB headquarters are available here.
EIB in Latin America and the Caribbean
The European Investment Bank has been providing financial support to projects in Latin America and the Caribbean since 2022, facilitating long-term investments on favourable terms and providing the necessary technical support to ensure that these projects achieve positive social, economic and environmental outcomes. Since the EIB began operations in Latin America in 1993 and the Caribbean in 1978, it has provided total financing of more than 20 billion dollars (17 billion euros), supporting approximately 350 projects in 30 countries in the region.
About the Global Gateway Investment Agenda
EIB Global is a key partner in implementing the European Union Global Gateway Investment Agenda, which aims to support strong projects that contribute to improving global and regional connectivity in the digitalisation, climate, transport, health, energy and education sectors. Investment in connectivity is one of EIB Global’s core activities, building on the Bank’s 65 years of experience in this area.
About Naturgy
Naturgy is a multinational energy company with a diversified portfolio of businesses and geographies. In addition to Spain, the group operates in Latin America (Mexico, Brazil, Argentina, Chile and Panama), the United States, Australia and the rest of Europe. The company supplies gas and electricity to more than 18 million customers in these countries, operating in both regulated and liberalised markets, mainly in electricity generation, distribution and marketing; and gas infrastructure, supply, distribution and marketing. The group has 18.4 GW of electrical power output worldwide with a diversified mix that includes 7.7 GW of renewable capacity.
Naturgy’s commitment to Panama
Naturgy has maintained a historic pace of investments of 500 million dollars, committed in the IMP 2022-2026 tariff review. For the period 2026-2030, subject to ASEP approval, more than 600 million dollars is estimated to be spent on quality improvement projects, demand growth, loss reduction and network modernisation. From late 2024 to now, the company has completed 14 substation and distribution line projects for a total of 46 million dollars. Naturgy Panama is also currently executing 24 other strategic projects with an associated investment of 215 million dollars.
Naturgy is driving the energy transition in Panama by producing clean, sustainable and renewable energy with its four hydropower plants, which take advantage of the country’s hydroelectric capacities and demonstrate its commitment to the COP30 objectives.
Over the last year, with the approval of the Regulatory Authority, Naturgy’s efforts have led to a significant improvement in service quality, among other indicators. Since the implementation of the company’s Quality Plan, unplanned SAIDI has been reduced by 23% and unplanned SAIFI by 25% (Sept 24-Sept 25).
About Cesce
Cesce is the Spanish export credit agency. With a wide range of insurance and guarantees, it supports Spanish companies to make their international activity safer and more competitive.