Organization and Nature of Operations:

Pedregal Power Company is a Panamanian limited liability company (sociedad de responsabilidad limitada), organized in November 1999, with a term life of sixty years. The Company shares were originally owned 100% by Coastal Power Panama Investor, S. A. (CPPI), who transferred its shares to Coastal Power Panama Generation Ltd. (“CPPG”), a wholly owned subsidiary of El Paso Corporation (El Paso).

Actually, the company shares participation are divided as follows:                                                 55.00% by CBPF Pacora Ltd., 11.89% by Burmeister & Wain Scandinavian Contractor A/S (BWSC), 11.89% by Industrialisation Fund for Developing Countries (IFU), and 21.22% by Inkia Holdings (Panama Generation), LTD.

The Power plant is located at Pacora, Republic of Panama; its main activity is the generation of electricity.

At the beginning of the project the plant capacity was 49.9MW. On August 16, 2005, the local regulator Autoridad Nacional de Los Servicios Publicos (ANSP), previously known as Ente Regulador de los Servicios Publicos, approved the Company’s request to update its electrical generating license to 53.53 MW plant capacity. The Company sells electricity and electrical generating capacity to local distribution companies under the terms of purchase power agreements, as well as through spot market sales within Panama and to other countries in Central America.
The construction of this plant started in December 2001 and was completed within a year. During its construction, Pedregal generated up to 330 jobs, most of them assigned to inhabitants of Pacora. The plant started operations on January 11th 2003, and currently employs 38 diesel engine Panamanian experts. There are 4 employees assigned to the management part.
It is worth pointing out that this plant was voluntarily built with no need of a prior bid, which goes to show investors' trust in the Panamanian regulatory frame, macroeconomic conditions and social stability.
On the other hand, Pedregal Power Company is the first plant ever in the history of Central America to obtain a non-recourse category financing and with no need of a prior energy and power purchase-and-sale agreement.
This Power Plant has three state-of-the-art technology diesel engines built by the German company MAN B&W DIESEL. Such engines use Bunker C fuel and also have the latest state-of-the-art technology regarding low emissions to the environment. Besides, the project abides by the strict environmental rules of the World Bank and the National Environmental Authority of Panama.

Investment Partners:

1- Caribbean Basin Power Fund (CBPF) – LATIN POWERS III

Conduit Capital Partners, LLC* is a private equity investment firm focused on the significant investment opportunities presented by the independent electric power industry in Latin America and the Caribbean.

Launched in 2003, the Conduit team manages the funds formerly known as the Scudder Latin American Power Funds which were launched by Scudder, Stevens & Clark** in 1993.

For more than a decade, the Conduit team has built the portfolios and managed among the most successful international infrastructure funds. As long-term investors, Conduit has managed funds generating industry-leading returns – not only in this sector – but across the breadth of private equity investing.

Given stable democracies, energy market prices tied to the US dollar, and a demand for power critical to the growth of the developing economies of Latin America, Conduit serves as principal sponsor or developer of medium-sized power plants and pipelines in the region. This meets the needs of both global investors seeking investment opportunities and Latin American project developers looking for strong, capable partners.

2- Inkia Holdings (Panama Generation), LTD. - Inkia Energy

Inkia Energy is a multinational Corporation dedicated to power  generation and focused in developing energy generation projects in Latin America.

In the identification of energetic sustainable solutions, Inkia Energy combines  economic, social and environmental factors, investing in clean and efficient technologies and operating its plants with the highest industry standards.

The strategic plan of the group looking forward to 2012 consider investments that will help satisfying the increasing demand of energy in the Latin-American countries with the aim to improve the quality of life  of the population and to provide to the  economy enough energy to sustain its  development across a diversified, balanced, competitive portfolio, respectful  towards the environment.

Inkia Energy's portfolio relies on 1,015 MW of net power, diversified in 7 plants in 6 countries. Additionally, the group is developing new hydroelectric and thermal projects in the region for more than 1,000 MW.

3- Burmeister & Wain Scandinavian Contractor A/S (BWSC)

BWSC is a company registered in Denmark and is part of the Mitsui Group. It operates globally in project development: (i) as investor, (ii) contractor in Engineering and Construction and (iii) contractor in the Operation and Maintenance of thermo electrical plants. BWSC has interests in Central America, the Caribbean, Europe, Africa, the Middle East and Asia.
The investment in Pedregal Power Company is the first ever in Central America.

4- Industrialisation Fund for Developing Countries (IFU)

IFU was established in 1967 by the Danish Parliament, as a self-managed fund intended for promoting economic activities in developing countries, through joint ventures with Danish companies. IFU partners in commercially viable businesses through their own capital and/or loans. As a rule, IFU must not exceed the Danish partner's capital. IFU has been operating for over 30 years in a wide range of investments in joint ventures, both at a large and small scale. IFU is prepared to share their experience by serving as consultant during the planning and the initial phases of investment projects. Once the project has been developed, IFU becomes a member of the Board of Directors. Over the years, IFU has participated worldwide in more than 450 general partnerships in 71 developing countries, with investments that amount to nearly 700 million dollars.