The electricity market of Panama is likely to remained controlled by Spanish and Colombian utilities since Gas Natural Fenosa and Empresas Publicas de Medellin (Colombia), which currently operate power distribution companies in Panama under long-term concessions, have been the only companies to submit bids for the acquisition of a 51% stake in these distributors. A 39% stake will remain controlled by the State while 10% will be retained by employees and other stakeholders.
Gas Natural Fenosa, which has been active in power distribution in Panama since the acquisition of Union Fenosa in 2009, offered US$570m for the 51% stake in Empresa de Distribución Eléctrica Metro Oeste (Edemet), and US$230m for Empresa de Distribución Eléctrica Chiriquí (Edechi). These two distribution companies are operated under a concession contract awarded to Gas Natural Fenosa and that expires in October 2013.
As well, EPM offered US$150m for Elektra Noreste (ENSA); EPM has a distribution concession, which will also expire in October 2013.
With these bids, the current players should remain in place and new concession contracts for a 15-year period should be signed.
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