Last week the European Investment Bank (EIB) signed a $300 million loan with Spanish multinational Naturgy 🇪🇸 & its Panamanian distribution companies, EDEMET and EDECHI. The loan will support the modernization and expansion of electricity distribution networks ⚡️in Panama. It is the EIB’s largest loan to a private-sector project in Central America.
The financing is backed by CESCE, Spain’s export credit agency. The guarantee mechanism—developed jointly by the EIB and Cesce—aims to support green projects led by Spanish companies abroad, reinforcing EU goals on climate action and environmental sustainability 🌱.
The investment will upgrade and expand Panama’s electricity distribution networks, improving grid reliability and efficiency, enhancing energy security for households and businesses, reducing operational costs, and enabling higher integration of renewable energy— particularly solar ☀️.
Naturgy & Panama
Naturgy has invested more than $500 million in Panama between 2022 and 2026 and expects to surpass $600 million in additional investments from 2026 to 2030. These projects focus on modernizing the electricity network, reducing system losses, and improving service quality. The company also operates four hydroelectric plants that supply clean, renewable power, supporting regional sustainability goals and aligning with the objectives of COP30.
Signing Ceremony Attendance
The signing ceremony was attended by the Chair of the EIB Group, Nadia Calviño who visited Panama last Tuesday, as part of an institutional visit to the country with the aim of strengthening the cooperation relationship. Besides attending the signing ceremony, she also visited the Panama Canal Authority (ACP).
Other attendees were the CEO of Naturgy, Francisco Reynés; the Chairman of the Spanish Export Credit Insurance Company (CESCE), Pablo de Ramón-Laca; the Vice-President of the EIB, Ioannis Tsakiris; the European Union Ambassador to Panama, Isabela Matusz; the Spanish Ambassador to Panama, Guzmán Palacios Fernández and various representatives of the Panamanian government such as Minister of Commerce & Industry Julio Molto, the Secretary of Energy Rodrigo Rodriguez and the Mayor of Panama City, Mayer Mizrachi.
This operation supports the EU-LAC Global Gateway Investment Agenda and contributes to strengthening the Central American Regional Electricity Market (MER). It also helps Panama advance its commitments under the Paris Agreement by boosting renewable integration and improving system performance.