Irregularities in the process and in the award of the Panama NG Power Project

Panama NG Power

The competitive act ETESA 01-13 in 2013, for the long-term contracting of the power and energy supply for electricity generation based on liquefied natural gas until 2036, has been subject to serious irregularities since its celebration. A criminal complaint was therefore lodged with the anti-corruption prosecutor of the Public Ministry, who stated that, because of a last minute addendum, only two weeks after the competitive act was carried out, by means of which they modified the requirements demanded of the bidders, excluding the other 20 companies except Panama NG Power, which suspiciously met an atypical term in this type of act.

The national and international media showed with concern the lack of transparency and legitimacy, in a public offering process with only one proponent for one of the most important investments in the energy sector in Panama’s history. The worry and suspicion were served.

Not only that, but also, Panama NG Power Company was licensed under the Interim License for the generation of natural gas-based electricity, not the Final License, in breach of the terms of the Act.

The controversial case of the Panama NG Power liquefied natural gas-based power generation project has been dotted with permanent irregularities and suspicions, some of which are:

  • Lack of transparency and legitimacy, in a process of public supply and competitive act, as national and international media showed.
  • Non-compliance with environmental legislation and Invalid original Environmental Impact Study.
  • Concealment of documents concerning power and energy contracts by the Public Service Authority (ASEP) and its director Armando Fuentes.
  • Public statements of the company, with data manipulated and without technical basis on cost differentials that the power distributors and that were denied by the Panama Electric Transmission Company (ETESA). Otherwise, the electricity tariff would be overcharged.
  • José Dapelo, the main partner, was banned from entering the country by the National Migration Service and was removed from his residence permit, due to numerous irregularities. He has also been splashed for the payment of bribes in Andorra accounts linked to the Papadimitriu family.