Panama Power contract ended

JUST WEEKS before leaving office former President Ricardo Martinelli signed a five year contract with AES Panama. The company began generating power earlier this year, and was paid approximately $13 million for two months.

Now it will receive another $20 million as compensation for the termination of the project. he decision to cancel the contract, was adopted by the Cabinet Council at the request of state power company Egesa Manager Harold Castrellón.
The early termination of the contract will save $142 million, said Egesa.
The plant, which cost $70 million, generates 72 megawatts.
“The government has officially communicated to AES the early termination of the contract on the grounds that its economic conditions are not suitable to the interests of the Panamanian people,” said Castrellon.
The plant can continue operating, but must sell its power under more competitive circumstances, reports La Prensa.
AES thanked the government for handling the situation with “transparency and professionalism” and said the plant will continue to operate.