REPUBLICA DE PANAMA COMISION NACIONAL DE VALORES

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1 REPUBLICA DE PANAMA COMISION NACIONAL DE VALORES REPUBLIC OF PANAMA NATIONAL SECURITIES AND EXCHANGE COMMISSION AGREEMENT (Dated October 11, 2000) Modified by Agreement No dated December 20, 2004 ANNEX No. 2 FORM IN-T QUARTERLY UPDATE REPORT Quarter ending on March 31 st 2013 PRESENTED IN ACCORDANCE WITH DECREE LAW 1 DATED JULY 8, 1999, AND AGREEMENT No DATED OCTOBER 11, GENERAL INSTRUCTIONS TO COMPLETE FORMS IN-A and IN-T: A. Applicability These forms must be used by all issuers of securities registered with the CNV, in accordance with the provisions set forth in Agreement No dated October 11, 2000 (regardless if the registration is by public offering or other mandatory registrations). The Update Reports will be required as from January 1, As a result, issuers with fiscal closings in December must present their Annual Report in accordance with the ruled provided for in the aforementioned Agreement. Similarly, all interim reports of issuers with special fiscal closings (March, June, November, and others), which must be received from January 1, 2001, onward, will have to be presented in accordance with the provisions set forth in Agreement No However, issuers will have the option to present their reports to the Commission before said date. B. Preparation of Update Reports This is not a fill-in-the-blanks form. It is only a guide about the order in which information must be presented. The CNV will make the word processor File available, provided that the interested party furnishes a 3 ½ disc. In the future, the form may be downloaded from the CNV's Internet page. If any information required does not apply to the issuer, given its characteristics, the nature of its business or for any other reason, such a circumstance must be expressly stated along with the reasons for which it does not apply to the issuer. Two sections of this Agreement make specific reference to Agreement No dated May 19, 2000 (modified by Agreement No dated August 28, 2000), on the Registration of Securities. It is a responsibility of the issuer to check said references. The Update Report must be presented in an original and a complete copy, including the annexes. A complete copy of the Update Report must be presented to the Securities Exchange, listing the securities of the issuer. Financial information must be prepared in accordance with the provisions set forth in Agreements No dated February 28, 2000, and No dated May 22, When during the accounting periods reported

2 there were changes in the accounting policies, acquisitions or any other form of business venture that may impact upon the comparability of the figures reported, the issuer must make clear reference to said changes and their impacts on the figures. Should any additional clarification be required, you may contact officials from the Securities Registration National Directorate at COMPANY NAME OF THE ISSUER: AES PANAMA, S.A. SECURITIES IT HAS REGISTERED: Bonds in the amount of $300,000,000 with due date December 21, 2016, at an interest rate of 6.35% issued under rule 144/A Regulation S of the Securities and Exchange Commission (SEC) of the United States. TELEPHONE AND FAX NUMBERS OF THE ISSUER: (507) Tel.- (507) fax ADDRESS OF THE ISSUER: Costa del Este, Paseo Roberto Motta, Edificio Business Park V (Edificio Bladex), piso No. 11, apartado postal Panamá, República de Panamá. ADDRESS: maribel.alvarez@aes.com I PARTE AES Panama, S.A. (the Company ) was established on October 26, 1999, as a result of the merger between Empresa de Generación Eléctrica Chiriquí, S.A. ( Chiriquí ) and Empresa de Generación Eléctrica Bayano, S.A. ( Bayano ). Chriqui and Bayano were incorporated as a corporation on January 19, 1998, as a result of the privatization and restructuring process of the electric power industry in the Republic of Panama. At the time of its incorporation the Company operated a hydro power plant with an installed capacity of 150 megawatts in Bayano, a thermal plant with a 42.8-megawatt capacity located in the Province of Panama, which went out of operation in September of 2005 and on October 18, 2006, was transferred to EGESA (Empresa de Generación Eléctrica, S.A.) which assumed all of the obligations and responsibilities over the plant as per TG transfer contract, and over the hydro power plants of La Estrella and Los Valles with an installed capacity of 42 and 48 megawatts, respectively, which are located in the Province of Chiriqui. The Bayano hydro power plant expanded its installed capacity with the installation of a third unit of 86 MW in November of 2002 and it rehabilitated and expanded the capacity of existing units from 75 MW to 87 MW, between November of 2002 and February of The Company built Esti hydro power plant with an installed capacity of 120 megawatts, located in the Province of Chiriqui, which went into commercial operation on November 20, In addition, the Company started in March 2006 the repowering of two generation units from the La Estrella and Los Valle power plants (first stage) and then in March of 2007 in its second stage the following two units, increasing their capacity from 90 to 96 megawatts, in June 2006 in its first stage and from 96 to 102 megawatts in June 2007 in its second stage, completing the repowering project. As of September 30, 2012, AES Panamá Energy, S.A., a subsidiary 100% owned by The AES Corporation (the Corporation), owns 105,353,687 (49.0%) shares of the Company, the Republic of Panama owns 108,347,536 (50.39%) shares, and the employees and former employees of the Company own 1,016,205 (0.47%) of the shares and 290,097 (0.14%) shares are held in treasury. The Company generates and sells electricity in the Panamanian electricity market, which is governed by the National Public Services Authority (formerly known as the Public Services Regulatory Agency), the entity which regulates the energy sector in the Republic of Panama. This report is presented under the US generally accepted accounting principles (USGAAP), and it is stated in thousands of US dollars (US$), except where otherwise specified.

3 A. Liquidity March March Cash flow of operation-related activities Net Profit 5,306 1,225 Adjustments made to reconcile net profit with net cash provided by operation-related activities 6,952 4,961 Changes in operating assets and liabilities (6,724) 15,272 Net cash provided by operation-related activities 5,534 21,456 Net cash (used in) investment activities (754) (26,170) Net cash provided (used) in financing-related activities (3,600) (66) Net increase (reduction) in cash 1,180 (4,780) Cash on hand at beginning of the year 40,202 36,182 Cash at the end of the year 41,382 31,402 As of March 31, 2013 and 2012, net cash of the Company was $ 41,382 and $ 31,402, respectively, representing an increase of $9,980 over the same period last year. As of March 31, 2012, the net income increased $4,081 over the same period of 2012 as a result of higher sales by $28,309, derived of the increment of the energy contracted for 2013 and higher generation by 150 GWh compared to the same period in 2012, when some power plants were unavailable, Bayano (January and February) and Esti (January to June). In the current assets the net cash used for operation is due to higher accounts receivables for 2013 derived from the contract with the related company AES Changuinola, S.A. Cash flows used in investing activities show a decrease of $25,416 with the previous period, mainly due to Esti tunnel repair ended in in June Cash flows used in financing activities show an increase of $3.534 mainly due to liability payments over 90 days related to the Esti tunnel repair. B. Capital Resources As of March 31st, 2013, the Company has made equity investments that are held in construction in progress related to minor infrastructure investments C. Operating Results

4 Revenues Sales: As of March 31 st, 2013, electricity sales reflect an increase of $28,309 compared to the same period in 2012, primarily due to increased energy contracted for 2013 and as a result of an increase of 40.1% on the sale spot price. The total generation until March 31, 2013 was GWh, 65% more than the previous year, mainly due to the entrance of Esti power plant. The reservoir level of Bayano closed with meters, 5.1% less than in 2012 and water intake were m3 /s, 29.9% more than the previous period. Below is a table comparing the results of the company: Commercial Information Unit VAR % VAR Energy Sales under Contract GWh % Energy Sales IC Contract (spot market price) GWh % Spot Market Net GWh (128.84) (122.46) (6.38) 5.2% Energy Sales on Spot Market GWh % Energy Purchases on Spot Market GWh % Energy Purchases IC Contract (spot market price) GWh (22.82) -53.6% IEnergy Purchases IC Contract (Contract price) GWh % Total Company Generation GWh % Energy Balance GWh Compensation Fund for the Tariff Stabilization GWh 43.7 Spot Prices Unit VAR % VAR System Spot Prices US$/MWh % Sale Spot Prices US$/MWh % PrePurchase Spot Prices US$/MWh % Operating Information Unit VAR % VAR Bayano Water Level msnm (2.98) -5.1% Bayano Rainfall m3/s % Bayano Generation GWh % ESTI Generation GWh % La Estrella Generation Gwh (20.20) -39.3% Los Valles Generation Gwh (19.17) -34.4% Spot Market Revenues Unidad VAR % VAR Spot Sales Revenues K$ 5, , , % Spot Purchase Expenses K$ 37, , , % Tariff estabilization Fund Compensation K$ 9, Costs and operating expenses Purchases: As of March 31, 2013, energy purchases increased by $17,635 compared with the same period 2012, mainly due to higher GWh set for this year in the contract with its affiliate AES Changuinola, S.A, additionally purchase volume on the spot increased 15% in 2013 compared with the same period of 2012, from GWh to GWh and higher spot price of 6%.

5 Transmission costs: Transmission costs do not show significant variations. Operation and maintenance: The operation and maintenance expenses increased US$1,624 generated mainly by the increase of wages and benefits, service contracts, regulation rate and control monitoring of the ASEP and maintenance ASEP. Depreciation: Depreciation expenses show an increase for 2013 of $1,098 due to an increase in the generation assets from the capitalization of the Estí tunnel repairs in June Administration: The management fee expense did not change significantly. Other income and expenses: The Other income did not change significantly. Interest income decreased $765 primarily due to lower debt held AES Changuinola, S.A related to the sales-purchase contract of Firm Capacity and Energy. On the other hand, the interest expense increased $620 due to capitalized interest during 2012 for the construction of the Esti tunnel. As of March 2012 were capitalized interests by $692. D. Analysis of prospects Conforme a los resultados del primer trimestre del año 2013 y a las proyecciones comerciales a nivel de margen variable, se espera que este año los resultados sean inferiores a los alcanzados en el año anterior principalmente debido al reconocimiento y registro en el 2012 de las compensaciones recibidas por la indisponibilidad de nuestra planta Esti por parte de la compañía del seguro. Así mismo, la extensión de la temporada seca para el 2013 afectara los resultados de la compañía. According to the results of the first quarter of 2013 and the variable margin projections, it is expected lower results than those achieved in the previous year mainly due to the recognition and registration in 2012 of the insurance compensation received for the unavailability of our power plant Esti. Furthermore, the extent of the dry season in 2013 affected the results of the company. PART II FINANCIAL SUMMARY A. Presentation applicable to issuers from the commercial and industrial sector:

6 FINANCIAL BALANCE 1Q13 4Q12 3Q12 2Q12 Total Sales or Revenues 95,499 88,949 80,203 69,502 Operating Margin 12,517 26,245 23,972 4,233 General and Administrative Expenses 77,135 56,080 54,601 60,206 Net Profit or Loss 5,306 33,261 17,497 7,741 Shares issued and outstanding 214,717, ,717, ,717, ,717,428 Per Share Profit or Loss Depreciation and Amortization 5,847 6,624 1,630 5,063 BALANCE SHEET 31-Mar Dec Sep Jun-12 Current Assets 163, , , ,947 Total Assets 599, , , ,500 Current Liabilities 75,871 63,226 84, ,516 Long Term Liabilities 339, , , ,379 Preferred Stock N/A N/A N/A N/A Paid-in Capital 155, , , ,481 Gain 30,951 25,645 36,884 19,387 Total Equity 184, , , ,605 FINANCIAL RATIOS Dividend/Share N/A N/A N/A N/A Total Debt/Equity Working Capital 87,883 76,862 77,611 62,431 Current Ration Operating Profit/Financial Expensess PART III FINANCIAL STATEMENTS The Financial Statements for AES Panama, S.A. are attached in Annex 1. PART IV FINANCIAL STATEMENTS OF GUARANTORS OR COSIGNERS Not applicable. Not applicable. PART V TRUSTEE CERTIFICATION PART VI DISCLOSURE In accordance with the provisions set forth in agreement of the National Securities, it is expressly understood that this document has been prepared under the belief that its content will be made available to the investment public and the public in general.

7 1. Means of disclosure The Website of the Company is 2. Date of disclosure From of June SIGNATURE Derek A. Porter General Manager