The Project’s Sponsors are InterEnergy Holdings (“InterEnergy”, or, “IEH”, a current IFC client and the main sponsor), and, Unión Eólica Panameña, S.A. (“UEP”).

IEH is a leading private sector power holding company in the Dominican Republic with a diversified portfolio of about 1,215 MW in installed generation capacity through its ownership in three subsidiaries: (i) a vertically-integrated distribution utility with more than 100 MW installed capacity, serving primarily isolated off-grid tourism areas; (ii) a 300 MW Independent Power Producer (“IPP”) selling electricity under a long-term PPA to the state-owned distribution sector; and (iii) a privatized generation company with 600 MW in total installed capacity at multiple locations selling electricity under long term PPAs both to its utility sister company and the grid.

UEP is a Panamanian company created by a group of Spanish and Panamanian investors to develop wind power projects in Panamá.

The Project’s shareholders are: IEH (75%), and, UEP (25%).

The total project cost is estimated at approximately US$435 million, which will be financed with debt and equity.

The proposed IFC investment comprises: (i) An A loan of up to US $66 million for IFC’s own account; (ii) A Managed Co-Lending Portfolio Program Loan (with the People’s Bank of China) of up to US$49.5 million; (iii) Syndicated B loans and Parallel loans of up to US$254 million from Development Financial Institutions and Commercial Banks; and (iv) Potentially, an equity investment of up to US$ 20 million.

89.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management	3.0
Guarantee
Loan	66.0
Equity	20.0

* These investment figures are indicative

The Project will be located in the Coclé province on the Pacific coast of Panama, approximately 150 kilometres west of Panama City. The site extends over approximately 18,500 ha of modified habitat comprised mostly of grasslands used for animal grazing, subsistence farming, harvesting of seasonal cash crops (e.g. rice), and commercial teak plantations. The project is located adjacent to the Pan-American Highway and Panama’s national electric grid.

- Supporting the Government of Panama''s efforts to promote development of renewable energy projects and displace expensive oil based generation, helping reduce energy prices and contribute to reduction in carbon emissions.
- Supporting an investment by an IFC investee company in a new market.
- Cocle is one of the least developed provinces in Panama. The Project is expected to bring employment (during construction) and help to create economic development.

- This would be the largest wind project to be constructed in Panama requiring significant debt, beyond what can be provided by commercial banks for Renewable Energy Projects in Panama.
- Supporting IFC''s investee company, Interenergy Holdings, in entering into new markets where they are not familiar and where IFC has extensive expertise. In doing so, IFC would be strengthening its relationship with IEH.
- Providing long term financing (first phase had only up to 8 year tenor financing) with a merchant risk component, and bringing lessons to the market from experience of IFC financing of projects globally (Mexico and Chile in LAC).

The project is categorized as B in accordance to IFC’s Policy on Environmental and Social Sustainability because of the limited number of specific environmental and social (E&S) impacts and risks of the project, which can be avoided or mitigated by adhering to standard practices, such as those described in the World Bank Environmental, and Health and Safety Guidelines (EHS Guidelines) and the applicable performance standards (PS). The most critical environmental, social, and health and safety (ESHS) risks and impacts of the project include: (i) earth movements, vegetation cover removal, and soil erosion associated with excavation and the operation of construction equipment, (ii) occupational health and safety (OHS) risks to construction workers, and (iii) OHS risks to maintenance workers, (iv) potential safety risks associated with blade throw (to nearby communities), and (x) permanent landscape modifications



The project requires no physical displacement and limited economic displacement associated with gaining access to land through 25 year leases for the WTGs, and purchase of one 5-hectare plot for the sub-station. Consultation and negotiations with land owners were amicable and land leases, and one land acquisition required for the electrical substation were achieved on a willing buyer-willing seller basis.



In respect to impacts on biodiversity, the project is more than 12 km away from any national park, Important Bird Area (IBA) or protected area, and is not in the path of migratory bird flyways. No adverse impacts on sensitive flora or fauna (including important bird and bat species) are expected. Finally, there are no indigenous peoples or areas of high archeological value in the project area of influence. As a result, Performance Standards (PS) 5, 6, 7 and 8 are not considered applicable to this project.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.