ABSTRACT
Prior to the mid-1960s, the major sources of electricity were thermoelectric generators concentrated in the metropolitan areas. Except for isolated generators in the Western and Central Provinces, many of these were owned and operated by the US-based Panama Power and Light Company (PPL). By the 1950s, the monopoly allowed PPL to provide services at higher rates than in a competitive market while simultaneously reducing cost by not investing in the modernization of plants and equipment. The nationalization of Panama Power and Light and the subsequent centralization of energy resource management in Institute for Hydraulic Resources and Electrification's (IRHE) hands cleared the path for construction of the Bayano Hydroelectric Complex. By 1971, IRHE had solicited bids from international engineering firms for the construction of the dam. The engineering firm chosen to carry out the main work was Yugoslavian--Energoproject. This company hid submitted the lowest bid, based on their offer to give a discount if IRHE accepted certain modifications in the design.
