The strategy Global Gateway is beginning to take concrete shape in Latin America and the Caribbean. After presenting its new cooperation framework with the region, Brussels is already working on a portfolio of 24 strategic projects and works related to transmission, interconnection, and generation , with a total estimated investment need of €6.84 billion .
The most noteworthy fact? The new developments now revolve around corridors, lines, stations, financing, and specific banking risk.
In that framework, the Colombia-Panama interconnection appears as the flagship project , since the work is considered the largest within the regional portfolio and would require a CAPEX close to 800 million dollars.
Energía Estratégica learned this during the third day of the EU Climate Dialogues 2 (EUCDs2) program , where community representatives detailed the map of works that the European Union seeks to support under its sustainable infrastructure strategy outside the bloc.
The line in question covers approximately 500 kilometers of route , with land and submarine sections, in addition to the need to link systems with different frequencies.
“Colombia-Panama is the most complicated case. It has a 50 Hz network on one side and a 60 Hz network on the other, different voltages, and underwater sections,” they explained.
In this case, negotiations between regulators remain open to define the operating model, the regulatory framework, and the conditions that will allow the project to reach financial closure.
For now, the start of operations is still projected for 2029 , although community sources acknowledged that the timeline is demanding.
“No national or international development bank can finance such a project alone because the risk exposure is too high,” the Commission stated. Therefore, Global Gateway's approach involves forming international teams of funders, with European participation, regional banks, and private capital.
Mexico and Brazil-Bolivia, signs of expansion
Although Mexico is not yet part of the 24 strategic projects in the regional portfolio, Brussels confirmed that there is an active dialogue with the Mexican government :
“We are working with them to see how we can support the challenge of infrastructure and the upgrade of the country’s transmission lines.”
The first sign is already on the table. Following the recent summit between the European Union and Mexico, the president of the European Investment Bank, Nadia Calviño , signed a memorandum of understanding with the Mexican Ministry of Energy.
In addition, a €150 million financing line with Bancomext was mentioned.
The Mexican case shows that the portfolio could expand as political, regulatory, and financial discussions progress.
Brazil-Bolivia is positioned as another sign of expansion. In this case, the objective is to reduce Bolivia's isolation and strengthen trade with the Brazilian market.
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The project envisions a line of approximately 500 kilometers and 500 MW, with an estimated investment exceeding 450 million euros.
Brazil , they explained, would move forward with the bidding process for its section, although the final pace will also depend on the decisions made by Bolivia and the definition regarding frequency conversion stations.
Caribbean: Isolated Islands and Ancient Networks
The Caribbean appears to be the most delicate case . There, the scale of the markets, the insular condition, the exposure to extreme weather events, and the state of the networks pose a challenge distinct from that of the large continental systems.
The first pilot project would be Saint Kitts and Nevis . The idea is to physically connect the two islands of the same state, separated by only a few kilometers, but currently without an electrical link.
If the model works, it could scale up to other neighboring territories and open the door to new cooperation schemes, with the participation of European companies, community public support and dialogue with the World Bank.
Meanwhile, the Dominican Republic and Puerto Rico are also being studied. However, the project faces a significant financial challenge due to the risk profile of the Puerto Rican utility.
The financial architecture of the Global Gateway under scrutiny
Of the total €6.84 billion, Team Europe is committing approximately €2.84 billion. Adding the contributions of regional entities, including the IDB, CAF, CABEI, and other development banks, the total amount mobilized reaches around €3.2 billion.
However, approximately half of the required investment remains to be covered. This portion will be sought through financing from other European banks, including institutions in Italy and Spain , as well as private equity contributions from the developers.
In parallel, the European Union plans to mobilize between 15 and 20 million euros in non-refundable resources for technical assistance, preparation of studies and progress towards the bankability of projects.
Central America, the laboratory of integration
“The case of Central America is special. It already has a certain degree of political integration and functions as a kind of laboratory,” they explained during the program.
In that context, the European Investment Bank approved a loan facility of 1 billion euros to support the region's energy commitment.
The package is complemented by contributions from France, Germany, Canada and regional banks and seeks to promote the second circuit of SIEPAC , in addition to binational lines and national works compatible with a regional vision.
Among the sections mentioned are Belize-Guatemala, Guatemala-El Salvador, Guatemala-Honduras, Honduras-Nicaragua, Nicaragua-Costa Rica and Costa Rica-Panama.
This is a crucial point. Brussels wants to prevent each country from planning its network in isolation . "If a country only considers national issues, it must also adopt this regional perspective," they emphasized.