Opportunity
Union Eólica Panameña (phase 1) and InterEnergy Holdings (phases 2 and 3) were seeking project finance from local and international lenders for Panama’s first wind farm and the first utility-scale use of Goldwind’s wind turbines. They needed help to provide comfort to the lenders that all risks were properly mitigated.
Solution
For phase 1, we provided financial, economic, technical, energy yield, environmental and social review of the project to the lenders, followed by construction and operations monitoring. Our environmental and social review included assessment against the requirements of the Equator Principles and IFC Performance Standards.
For phases 2 and 3, we provided ad hoc owner’s technical advisory services for all disciplines, project management support and monthly construction monitoring services.
Outcome
Penonomé wind farm reached financial close. All three phases are now in full operation.
Key lessons learned include the need for a majority of revenues for a project to be under long-term contracts to provide comfort for debt service coverage, and the need to plan for and provide time to arrange and complete long term project financing from development banks.