Credit No Longer Available For Projects
Wednesday, July 15, 2009 15:45
Credit no longer available for Projects
The projects that are underway, developing the Hydro electric facilities for Panama have been dealt with a blow as the local credit sources and facilities have given way under current market conditions. According to the media these projects which are underway or within the planning and study phase are worth an estimated $2,2 billion.
Further reports suggest that the banks have tightened their lending to protect their liquidity in these difficult financial times, the banks a furthermore becoming more cautious specifically with the longer term projects such as the hydro plants.
Although an increase in debating regarding the impact of these projects has occurred, Panama’s annual power demand increases by 4% per annum and these projects are vital in meeting such a demand. Whilst indigenous communities of the Bocas del Toro region have raised their grievances of the fact that these projects infringe upon their territorial rights as well as their traditional way of life.
Options exist for external funding of such renewable initiatives, however according Eduardo Vallarino, the president of the Panamanian Association of Renewable Energy Producers, the bureaucracy and red tape prevent quick and easy access to such financing.
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