Arias, Fábrega & Fábrega acted as Panamanian counsel to the two construction period Terminal Use Agreeement lenders (TUA), Banco BAC Credomatic (US$18 million) and Banco Nacional de Panamá (US$25 million), in connection with an additional US$43 million project finance credit facility to Costa Norte LNG Terminal S. de R.L. and Gas Natural Atlántico S. de R.L., partly-owned subsidiaries of AES, for the construction of the LNG power plant.

Background information

During 2017, ARIFA acted as Panamanian counsel to the International Finance Corporation (IFC), the Central American Bank for Economic Integration (CABEI), Bancolombia S.A., Banco General, S.A. and Global Bank Corporation, among others, as senior lenders in connection with a US$291.5 million project finance credit facility to Costa Norte LNG Terminal S. de R.L. and Gas Natural Atlántico S. de R.L., partly-owned subsidiaries of AES, for the construction of the 380 MW LNG power plant and related LNG transport and storage terminal near the Atlantic entrance of the Panama Canal in Colón, Panama. The plant will be the single largest natural gas powered generation facility complex to be built in Panama, Central America and the Caribbean, representing close to 20 per cent of the total power generation capacity of the country. The first timer project is comprised of the power generation facility, and a LNG store facility and a port terminal.

The AES Colon LNG-to-Power Project transaction received the 2016 IJGlobal Award in the category of Latin America Power Deal of the Year. This award acknowledges innovation and excellence across the Americas energy and infrastructure finance markets.