EIB Global, the international partnerships and development arm of the European Investment Bank (EIB), and Naturgy Energy Group have signed a $300 million CESCE-guaranteed loan to modernise and expand Panama’s power grid. The agreement, the largest loan EIB has signed for a private company in Central America, aims to improve the reliability and efficiency of electricity supply, strengthen energy security, and increase access to electricity for households and businesses, particularly low-income communities.
The loan, guaranteed by Spain’s export credit agency CESCE, supports green projects led by Spanish companies abroad and aligns with the European Union’s climate action and environmental sustainability objectives. The project will facilitate the integration of renewable energy sources, such as rooftop solar panels, into the grid, while enhancing operational efficiency and reducing technical and commercial losses. It exemplifies public-private cooperation to promote sustainable development and the energy transition in Panama.
The signing ceremony was attended by senior representatives from EIB, Naturgy, CESCE, the European Union, the Spanish government, and Panama’s government, highlighting the strategic significance of the initiative. EIB Group President Nadia Calviño emphasized that the financing strengthens regional energy integration and provides cleaner, more secure electricity to communities. Naturgy’s CEO Francisco Reynés underlined the company’s commitment to Panama, noting that the investment will enhance service quality and promote a more efficient and sustainable energy model.
The project contributes to the EIB Group’s Climate Bank Roadmap and Strategic Roadmap for 2024-2027, supporting the EU Global Gateway Investment Agenda in Latin America and the Caribbean. It also aligns with Panama’s Nationally Determined Contribution (NDC) under the Paris Agreement by facilitating the integration of renewable energy and improving overall system efficiency. This initiative complements a broader €1 billion EIB financing programme aimed at integrating power grids across Central America, supporting decarbonisation, renewable energy generation, and improved access to affordable electricity.
Naturgy, with extensive operations in Latin America and a diversified energy portfolio including 7.7 GW of renewable capacity, has been a major investor in Panama, committing over $500 million for grid improvements in the 2022–2026 period and planning additional investments exceeding $600 million for 2026–2030. The company’s recent projects have significantly enhanced service quality, reducing unplanned outage duration and frequency. CESCE’s guarantee underlines Spain’s support for international expansion by Spanish companies, combining risk coverage with climate-positive investment.
Overall, the EIB-Naturgy partnership exemplifies the Team Europe approach, combining public and private resources to promote sustainable infrastructure, modernise electricity systems, integrate renewable energy, and strengthen EU-Latin America cooperation in the energy sector.
