PN-L1054 : Pando-Monte Lirio Hydroelectric Power Project

The Project is among the highest development priorities of the GOP, which is to promote sustainable economic growth, and expand the country's electricity generation capacity through renewable sources. The Project will yield important development benefits, such as: (a) contribute to the reduction of Panama's dependence on imported fuel, which has recently experienced high price volatility resulting in higher and more volatile end-user tariffs; (b) help diversify the country's energy matrix, which has been increasingly dependent on thermal generation in recent years, by developing the country's large hydroelectric potential; (c) help boost the country¿s competitiveness by providing an essential input to industry; (d) replace highly polluting hydrocarbon-based fuels such as bunker oil, diesel and marine diesel with a renewable source of energy, thus reducing the impact of greenhouse gas emissions; and (e) contribute to the expansion of the regional electricity market by connecting the Project to the MER.