Panama investment highlights

A report of the Economic Commission for Latin America and the Caribbean (ECLAC) placed Panama as the Central American country with the highest volume of foreign direct investment (FDI) captured in the first half of the year.

During this period, Panama received 1,416 million dollars, again beating Costa Rica, its closest competitor, which recorded 570 million dollars.
According to projections from the Comptroller General, the Panamanian economy could raise over 3 billion dollars in FDI in 2011, exceeding the
2,362 million dollars last year.

Among the factors that have driven FDI in Panama is the establishment of multinationals such as Wrigley and Fastenal (U.S.), Atlas Copco (Sweden), Unilever (Netherlands), Merck and Bauer (Germany).

According to the ECLAC report, foreign investment in the 18 Latin American economies grew 54% in the first six months of the year, confirming good economic performance of the region, despite the uncertainty of the European crisis and the U.S. deficit.

La Prensa
October 26th, 2011
Summary by Juliette Passer

30% progress on Panama Canal expansion

The expansion project of the Panama Canal is 30% complete, including dredging, dry excavation, design and construction of new locks. This work was done by a Belgian company - Jan De Nul Group, which won the contract in August of 2010 for $54.5 million.

Yesterday, the Panama Canal Authority (ACP) commenced the filling of the Pacific access channel to connect the new Post-PANAMAX locks with the Gaillard Cut.

It will take about three days to fill the area using 1.4 million cubic meters of water from Gatun Lake according to Jorge Luis Quijano, Executive Vice President Engineering and Program Management of the ACP.

This entry to the Pacific access channel is measuring 1.6 km long, 218 meters wide and its depth of excavation is to 9.14 meters above sea level. The rest of the Pacific access channel, with a total length of 6.1 kilometers, will be filled during 2013 once it has completed the excavation of 26 million cubic meters and the construction of earth and rock dam of 2.3 km that separates the Miraflores Lake.

October 20, 2011
La Prensa, Summary by Julitte Passer


You can see the process on the video by Jan de Nul - "Dredging the new Panama Canal" at:
http://www.youtube.com/watch?v=8S5Z807Ws4c

November is the month of Holidays in Panama – the list is below – make plans accordingly and enjoy a few days off!

November 2nd: Memorial Day (Día de los Difuntos)
Half Day up to 12PM

November 3rd: Independence Day (Separación Panama de Colombia)
Day Off

November 4th: Flag Day
Day Off

November 5th: Colon Day (conmemoración Patriótica de la Ciudad de Colon)
Day Off

November 10th: Uprising Day Los Santos
Day Off

November 28th: Independence Day (Separacion Panama de España)
Day Off


Happy Holidays to all from Juliette and the NY Panama team!

November is the month of Holidays in Panama – the list is below – make plans accordingly and enjoy a few days off!

November 2nd: Memorial Day (Día de los Difuntos)
Half Day up to 12PM

November 3rd: Independence Day (Separación Panama de Colombia)
Day Off

November 4th: Flag Day
Day Off

November 5th: Colon Day (conmemoración Patriótica de la Ciudad de Colon)
Day Off

November 10th: Uprising Day Los Santos
Day Off

November 28th: Independence Day (Separacion Panama de España)
Day Off


Happy Holidays to all from Juliette and the NY Panama team!

Panama Canal would bring the State $985 million this year.

In its 12 years of Panamanian administration, the Panama Canal will be delivering to the National Treasury 6 billion 556.1 million dollars.

In 2011, Panama Canal broke a record in freight volume, reaching 322.1 million tons in one year. This figure improved record by 7.1% from 2010.

Direct contributions from the Panama Canal to Panama budget this year will total $985 million, according to the latest estimates from the Ministry of Economy and Finance.

This figure will be $147 million above what was budgeted for 2011. The total contributions consist of $365 million in tolls ($21 million more than budgeted) and $620 million dividend ($126 million more than budgeted).

The improvement in the results of 2011 is due to increased traffic on the waterway, which also was a record. For next year, the Canal expects 332.5 million tons in freight volume.

Summary by Juliette Passer, La PRENSA, October 2011

More US investment is expected with the TPA between the U.S. and Panama, summary by Juliette Passer, Esq.

The Panamanian industry sector and government expressed hope that the ratification of the Trade Promotion Agreement (TPA) with the United States will attract new investment to Panama, but others expressed concerns that it poses a challenge for the agricultural sector of Panama.

The Agreement comes at a time when Panama is experiencing a boom with an average economic growth of 8.5% over the past five years and prospects for growth of over 9% for 2011.

"We will facilitate what we have to do to help our producers and farmers so they can compete with quality products with good prices," said Ricardo Quijano, Minister of Commerce and Industry of Panama. "We will give the necessary support ... so that agricultural producers can have access to new technologies, new products and thus be competitive."

Maritime sector and services, including areas such as finance and logistics are the most excited about the TPA, because the Agreement improves the conditions for the investment of American capital, which would hopefully bring new businesses and create more local jobs.

Minister Quijano considered Panama's geographic position and the growth of logistics operations for transportation of goods by sea, land and air as favorable combination of factors coupled with the U.S. trade pact with Panama for consolidating its platform for export.

October 15th, 2011, Telemetro (Channel 13), summary by Juliette Passer

We have trade agreement with Panama!

We have trade agreement with Panama! summary by Juliette Passer
LA PRENSA, OCTOBER 13TH.

The U.S. Congress approved yesterday the trade promotion agreement (TPA) with Panama after a marathon session that ended four years of stagnation in the White House.

After two intense debates Panama won approval of the agreement. In the House of Representatives it received 300 votes in favor and 129 against, while the Senate had 77 votes in favor and 22 against.

With this, the Agreement is ready to be signed by President Barack Obama, who called the approval of agreements with Panama, Colombia and South Korea as "a great victory for workers and businesses."

The United States is Panama's main trading partner, and the Agreement opens to Panama access to a market of 300 million potential consumers. The TPC in Panama involves a demanding agricultural sector competitiveness and improving the quality of education. It is expected that more American companies come to the country, that the financial sector will make its way in America, and Panama to provide preferential services in that market.
"This is an achievement of all Panamanians and administrations that have preceded us. The Panamanians have to prepare to take the benefits of this treaty, which shall enter into force soon,” said President of Panama Ricardo Martinelli.

Federico Humbert, President of the Panama Chamber of Commerce, described the ratification as a historic moment for the country. But he warned that the changes have to occur in all sectors.

"Hard work lies ahead, the implementation period should last about 18 months, in which both government and private sector must press ahead to support our producers, to ensure that when the treaty enters into force they are ready to reap the benefits that it can give us ...", said Humbert, who was also Ambassador to Panama in the United States.

On Tuesday October 18, Minister of Commerce, Ricardo Quijano, will be traveling to Washington to begin the process of implementation of the treaty. It is expected that in eight months it will take effect.

Panama is a more competitive country, summary by Juliette Passer

Panama advanced this year four positions in the rankings of Global Competitiveness and was among the 50 most competitive economies in the world. The country, according to the World Economic Forum, coming from the 53rd position joined the 49th position, and became again the second most competitive nation in Latin America in 2011, surpassed only by Chile, which held the 31st position.

Summary and photo by Juliette Passer

Millions are invested into the western suburbs of Panama City

According to the main Panamanian newspaper, LA PRENSA, investors found fertile land to put their money west of Panama City. Arraijan -specifically, in the past was known as a dormant town - they have now developed commercial and hotel projects whose main attraction is its proximity to the capital city, but without the typical traffic chaos and bustle of the City of Panama.

Between 2009 and July 2011 the value of construction in Arraijan added $200 million, of which $97 million was invested in nonresidential projects. Regis Gaston, President of the Panamanian Chamber of Construction (CAPAC), estimated that commercial property investments will continue to increase towards the west.

He noted that there is already a captive population in Arraijan and La Chorrera, and so now employers are focusing on commercial projects. But beyond the dollar investments, the President of Capac argues that it is urgent to expand the road infrastructure to expedite travel between the capital and the area west and vice versa.

The Panama Canal Authority (ACP) included $ 20 million in its budget for 2012 for the design of a fourth bridge over the waterway. The bridge, according to information from the ACP, will be designed to withstand the weight of a light rail. On the grounds of the former Howard Military Base, the firm London Regional is planning to invest $705 million over a period of 40 years. Of this total, the company has already invested 15%, and by 2015 the figure expected to reach $405 million.

At least 70 companies, mostly multinationals, already operating in Howard and by the end of the year the company expects to deliver the first residential units with sales recorded over 50%. This project pushes the development of surrounding areas, as is the case of Farfan, where Empresas Bern is building a hotel of 621 rooms and a residential complex. The combined investment is exceeding $120 million and is scheduled for October 2011 opening of the hotel, which will be managed by the Westin chain.