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Another big multinational firm is investing in Panama. Global Infrastructure Partners (GIP), an independent infrastructure fund manager, has announced plans to inject $175 million into a 670 MW natural gas cogeneration plant to be constructed in Colon.

The new facility is an example of Panama’s rapidly growing infrastructure and the commitment to a diverse power grid. The new facility, Generadora de Gatun (Gatun), is expected to be “the largest and most efficient Combined Cycle Gas Turbine (CCGT) power plant in the country,” according to a company statement.

Global Infrastructure is making the investment in Group Energy Gas Panama S de RL, a newly formed joint venture between InterEnergy and The AES Corporation, described as “two of the largest private investors in the Panamanian power and energy market.” Proceeds from the investment, “will be used to fund over $1.0 billion of estimated acquisition and construction costs of the project,” the company said.

Both InterEnergy and AES have established players in the region. It has been developing power projects in the Caribbean and Latin America for over 30 years and is the third-largest power generation company in Panama. The AES Corporation, established in Panama in 1999, currently owns and operates over 1,100 MW through three subsidiaries, AES Panamá, AES Changuinola, and AES Colon.

“The Gatun power plant is well-positioned to meet growing industrial power demand in Panama,” said Steve Cheng, Credit Partner at GIP. The facility is expected to play “a key role providing stability to Panama’s electric grid considering the significant renewable generation sources already in place,” he said.