International Finance Corporation Provides

$150 Million for Central Americas First

Integrated Liquefied Natural Gas Facility

In Washington, D.C.:
Vanessa Bauza, IFC
Phone: 202-458-1603
E-mail: vbauza@ifc.org

In Panama City:
Khadine Sanhueza, AES
Phone: +507 206-2682
Email: khadine.sanhueza@aes.com

Panama City, Panama August 2, 2016 IFC, a member of the World Bank Group, has completed
a $150 million financing package for the construction and operation of Central Americas first
integrated liquefied natural gas (LNG) to power facility. It will ease the dependence on imported
fossil fuels and help mitigate electricity shortages by introducing a clean, cost-effective and
reliable new energy source to the region.
The project, AES Coln, consists of a 380 megawatt gas-fired power plant and an onshore LNG
import and regasification terminal with an 180,000 cubic meter storage tank. The facility is
expected to displace at least 2,100 gigawatt hours of power currently generated from heavy fuel
oil and diesel, thereby avoiding about one million tons of carbon dioxide emissions each year. That

is roughly equivalent to taking more than 200,000 cars off the road. Once operational, the project
will offset about 4 percent of Panamas carbon dioxide emissions each year.
AES Coln has a total project cost of approximately $1 billion. Additional capital for the project
has been secured through other financial institutions, along with equity investments from the AES
Corporation and the Panama-based Motta Group.
We are honored to have IFC joining us in this transformational project, through which we
reaffirm our commitment to Panama and the region, said Gustavo Pimenta, CFO for AESs
Mexico, Central America and Caribbean Strategic Business Unit. AES Coln will generate
significant benefits to the country and contribute to its sustainable development by diversifying
the energy matrix with clean natural gas, while providing an avenue for the transformation of
other adjacent industries within the regional economy.
In addition to its direct benefits, natural gas offers synergies with renewable energy. The LNG
facility will provide cleaner and more affordable base load power to complement the inherent
variability of wind and solar energy. This will make it possible to integrate more renewable power
projects into the grid, while balancing electric system loads and ensuring a continuous supply of
electricity.
We are extremely pleased to be working with IFC on this important project to establish the first
LNG plant in Central America, said Stanley A. Motta, President of Motta Group. Bringing clean
power to Panama is a project we and AES have been working on for some time. We are proud to
see it become a reality.
Panama is projected to be Latin Americas fastest-growing economy over the next five years.
However, infrastructure investments, particularly to increase power generation, have lagged. The
Panamanian government projects a 5 percent annual increase in the countrys energy demands,
which will require significant investments.
This LNG to power facility is a game-changer for Panama, said Giancarlo Ortega, IFC Principal
Investment Officer. It leverages an expected growth in natural gas and provides a low-carbon
power source for Panama, which has been heavily dependent on seasonal hydropower and
vulnerable to fluctuations in oil prices. Introducing LNG as a fuel for electricity will significantly
transform the countrys energy matrix, supporting a critical component of its growth strategy.
Introducing LNG is also expected to have broad impacts beyond the power sector: This integrated
facility enables industrial users in shipping, transportation and other sectors to convert from using
oil products to natural gas. Located on Panamas Atlantic coast, the plant will become operational
in the first half of 2018. AES expects to generate approximately up to 2,000 direct jobs during
construction.
Since 2010, IFC has provided $1.3 billion for Central Americas power sector, including mobilizations
from other financial institutions. These projects include, among others, UEP Penonom II, the
largest wind farm in Central America; three solar power plants in Honduras; and the Reventazn
hydropower plant, which will bring electricity to half a million homes in Costa Rica. With this LNG

to power facility, IFC has supported the financing of over 1.25 GW of new generation capacity in
the region in that timeframe.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on
the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six
decades of experience to create opportunity where its needed most. In FY16, our long-term
investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise
and influence to help the private sector end extreme poverty and boost shared prosperity. For
more information, visit www.ifc.org

About AES Corporation

The AES Corporation (NYSE:AES) is a Fortune 200 global power company. We provide affordable,
sustainable energy to 17 countries through our diverse portfolio of distribution businesses as well
as thermal and renewable generation facilities. Our workforce of 21,000 people is committed to
operational excellence and meeting the worlds changing power needs. Our 2015 revenues were
$15 billion and we own and manage $37 billion in total assets. To learn more, please visit
www.aes.com. Follow AES on Twitter @TheAESCorp.
Since 1999, AES Panama and AES Changuinola, the AES affiliates operating in Panam, have
invested approximately $1,3 billion in assets and currently have 777 MW of installed capacity. With
the most recent addition of AES Coln, AES will have an additional 380 MW in its generation
portfolio and will continue to help reduce the dependency of the country on oil derivatives.

About Motta Group

The Motta Group is a Panama-based family-owned regional conglomerate that invests in and
actively oversees a broad portfolio of companies in aviation, financial services,
telecommunications, energy, media, logistics, real estate, and wholesale and retail distribution.
The most significant ones are Copa Airlines, the NYSE-listed flagship air carrier of Panama; Banco
General and ASSA Compaa de Seguros, Central Americas largest locally-owned bank and
insurance company, respectively; Cable Onda, Panamas top provider of pay TV and internet; TVN,
open television provider; AES Colon, Central Americas first LNG power plant and terminal;
Manzanillo International Terminal, one of Latin Americas largest container ports by volume;
Motta Internacional, the Colon Free Zones oldest company, whose Attenza duty free business is
present in more than seven countries in Latin America; and Juegos de Video de Latinoamerica, a
joint venture with NYSE-listed GameStop. The Motta Group is headed by Mr. Stanley Motta, a
recognized and successful entrepreneur.