Interconnection would cost US$200mn

A 400km electric power interconnection line between Panama and Colombia, currently being studied by both governments, would cost some US$200mn, according to Julian Villarruel, director of Colombia's energy and mining planning unit Upme. The project, which is still in pre-feasibility stage, would start operations at the same time as the Siepac project to interconnect the seven Central American countries by 2007, he told BNamericas. "We are carrying out technical studies and reviewing our options from an environmental standpoint to decide the best way to proceed," Villarruel said. "We have to decide what part of the line will be on land and what part will be under water." The best route is reported to be an undersea cable running from Colombia's Gulf of Uraba following the coast to the north of Bayano in Panama. The line would deliver cheaper Colombian power to Panama, and could allow consumer bills to be cut by 20-30%. According to a previous report, Panama would use 180MW and ship the other 120MW on to Costa Rica and from there to Central America. A Colombia-Panama interconnection would not require major changes in either country's regulatory structure, Villarruel said. "Colombia has a regulatory framework that is pretty competitive and we think we just need to harmonize our systems, but no more than that, and then adjust the markets in both regions," he said.