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The Panamá Canal is important to world energy markets as a major transit center for oil shipments and a potential choke point . Control of the canal will revert from the United States to Panamá at noon on December 31, 1999. Government / Legislation Instituto de Recursos Hidraulicos y Electrificación (IRHE) Panamá is restructuring its electricity sector. IRHE, the state power company which was created in 1961, has been divided into four generation companies, three distribution companies, and one transmission company for sale. Fifty-onepercentofthesharesofthe distribution companies have already been sold; 39% will be retained by the government, and 10% will be sold to the unionized IRHEworkers. TheGOPwillretain49%ofthesharesin thefourgenerationcompanies, 49%willbesold,andthe remaining 2% will be transferred to the workers. The GOP will retain control of the transmission company which will act as the main buyer, acquiring power from the private generators for delivery to the distributors, with the exception of large buyers who can purchase directly from the generators. The IFC is guiding IRHE in the privatization process, including preparation of tender documents. Law No. 6 (February 1997) The new electricity law promotes competition, allows private investment in generation, and provides for service improvements in the electricity sector by splitting IRHE into eight new companies. All but the transmission companies will be privatized. The Law establishes a maximum of 20% of the national installed capacity for any individual private project or company. Additionally,thetotalparticipationofprivate generationislimitedto45%ofthecountry’stotalinstalled capacity. Panamáimposesnorestrictionsontheimportofelectric powerequipment. Geothermal Resources in Latin America & the Caribbean 89PDF Image | Geothermal Resources in the Caribbean and Latin America
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