At a cost of $23 million Dollars, Union Fenosa will replace power lines with underground cables in Panama City, Santiago and David in a four-year period starting in March 2011 and ending in July 2014, reported Sebastian Perez , the Director of Distribution for the electrical company. The bid for companies to perform the work will be held in November 2010. This project will increase the cost to consumers at a rate of 0.001 cents per kilowatt of electricity used by residential customers, or $1.00 for 1,000 kilowatts, explained Perez.

During the installation of the new cables and the replacement of the existing power cables on poles for underground cables, power will be interrupted by sectors for no more than four hours at a time, not days, said the representative of Union Fenosa. In Panama City the cables will be changed along vía Brasil, vía España, Avenida Federico Boyd and Calle 50, at a cost of more than $18 million dollars. In Santiago the work will be from Central Avenue to the Inter American Highway, covering 3.7 km at a cost of more than $1.8 million dollars. In David, the work will be done around the Cervantes park, covering more than 2.2 kilometers, at a cost of $836,443 dollars.

The excavated areas will have chambers that will prevent water from damaging the system during floods, meanwhile the transformers currently hanging from electrical poles will be at ground level next to the sidewalks and others for lack of space will be underground, said Perez. The impact is visual, and dramatically reduces damages caused to power lines by birds, trees, or lightening strikes that affect service, as well as drivers who hit the electrical power poles. The project being carried out by Union Fenosa will also involve cables for telecommunications, said the source. (La Critica)   

PANAMA CITY, Panama (PennWell) -- AES's 223-MW Changuinola I hydro plant in Panama is set to begin commercial operations in the first half of next year, wire services reported. The plant will use water from the Changuinola River in Bocas del Toro province. AES Panama is the country's largest hydro generator, with installed capacity of 482 megawatts. In other news, Brazil's 210-MW Serra do Facao hydropower plant is projected to come online within three months, the president of project developer Serra do Facao Energia consortium told wire services. The Serra do Facao hydro project initially was planned to come online in October 2010. The plant is located in the Brazil's center-western state of Goias.   

Panama's Energy & Environmental Engineering Corp. will invest a total of US$720 million in the construction of two wind farms that will add renewable energy to the national Panamanian grid. The projects, known as Anton Sur and La Colorada, are located near the city of Anton, in the province of Cocle, southwest of Panama City. Each of the two wind farms will have an installed capacity of 90 megawatts (MW). Permits for the projects are expected to be approved by December 2011. Construction of the facilities is expected to begin in early 2012, and should take about 18 months. The estimated investments for these projects are US$360 million each. Over the next few years, a large number of new wind farms will add a total renewable capacity of 2,359 megawatts. The new wind farms will include:

• *Penonome Toabre Phase I and II (150 and 75 MW),
• *La Chorrera (372 MW),
• *Donoso (600 MW),
• *Anton (105 MW),
• *Cerro Jefe (52 MW),
• *La Soñadora (100 MW),
• *Macano Roma (174 MW),
• *Santa Cruz (58 MW),
• *Marañon (50 MW),
• *Azuero (180 MW),
• *Santa Fe (81 MW),
• *Nuevo Chagres (42.5 MW),
• *Portobelo Ballestillas (59.5 MW),
• *Rosa de los Vientos (194 MW),
• *La Miel (25.5 MW) and
• *Cerro Azul (40.8 MW).

Overall demand for energy in Panama grew 12 percent in 2009, double the growth rate for 2008. The implementation of these projects will add more megawatts to the interconnected system, satisfy the increasing demand for electricity, and reduce Panama’s reliance on petroleum-based products, the project’s sponsors said in a statement.   

A study for the exploration of oil, natural gas and other petroleum products, to be held in Panama, was approved by the National Economic Council (CENA), reported yesterday by Deputy Economy Minister Frank de Lima. The company will identify potential areas near the Colombian-Panamanian border region, which could be exploited. "There are good indications of the existence of oil, and the commercial viability will be analyzed," he said. De Lima announced that as part of the study they will conduct drilling and geological analysis. The work will cost $ 476,765. (La Critica)   

Another step forward. Yesterday there was a ceremony to mark the start of the construction of a new Prison Complex that will be known as "La Nueva Joya" (The New Jewel.) In 36 months, more than 5,500 prisoners will be moving into the new facilities, according to Public Security Minister, Jose Raul Mulino, which will be a decent and comfortable structure and not "sheds to store people" as we have now. After the Cabinet Council approved the signing of the contract for this project on 9 June 2010, the Colombian company UM Panamá was chosen to build the new facility.

Ramon Alvarez, the representative of the consortium UM Panama, said the cells would have triple locks, and that the pavilions would be under the watchful eye of the guards. He also said the new facility would have the highest safety standards and would incorporate the latest technologies developed for use in prisons. He added that this facility would also play a role in the area of rehabilitation, since within the prison buildings they will build workshops, recreational facilities, and training facilities for the inmates chosen to participate in renewal programs. The representative of the consortium said the project will begin with an intervening stage during which the Panamanian authorities will fully supervise each of the instruments that will be included in the project, and during construction of the structures inspections of the project will be completed.

Some 650 people will work on the construction of this project, and it is expected that the first phase will be ready to receive inmates within about 18 months. This company has been involved in the building of more than four prisons in Colombia. COST - The cost of the project is more than $155 million dollars. The complex will cover more than 30 hectares of land. (Dia a Dia)   

Despite their best efforts, heavy rainfall prevented workers from completing the removal of a power line pole that fell over yesterday afternoon, blocking Calle 50. On Monday morning Calle 50 will be closed again, until all debris is collected and part of the power lines that fell in the street. Fortunately no one was injured, but this caused a traffic jam on the busy avenue. (Panama America)   

The Ministry of Public Works will open the new access ramp to the Northern Corridor at Villa Lucre next Monday, and at the same time announced the opening of the Northern Corridor towards the area of Tocumen for the benefit of drivers and the community in general. Public Works Minister Federico Suarez said that during the first year of their administration, he has taken more than six months to reevaluate projects to benefit the community. He said they would begin construction on the expansion of the road from two to four lanes from Davisa in Chitré to Las Tablas, as well as the road from David to Boquete in the Chiriqui province. Among other projects to improve, expand, or upgrade existing roads, the highway from Arraijan and La Chorrera to the Autopista will be expanded from the current four lanes to six - three in each direction. Suarez also reported work continues on the extension of the Coastal Strip to San Felipe, which will give a new face to the area of Terraplén. Another important project completed during the last twelve months was the dredging of the Xixaola river channel, resulting in decreasing the risk of flooding in surrounding communities. Another important project in the works is the construction of sixteen overpasses in the Panama City area which will complement the Metrobus project. (TVN Noticias)

Editor's Comment: The only thing missing in this presentation was Minister Federico Suarez saying "...so please don't fire me..." to Ricardo Martinelli. Tomorrow Martinelli will announce a series of changes to his Cabinet and it's apparent that Federico Suarez might think he's at risk. Of course all of the Minsters are trotting forward to the news cameras and microphones today to discuss what they have accomplished during their first year in office, and what they have planned for the future. The MOP has been unusually quiet - considering they normally spend most of the money. Suarez said he spent six months reevaluating existing plans and projects, which could also be described as "figuring out where the bathroom is." All of these guys are rookies, and if anyone is replaced then the first question from the new guy will be "...and, where is the bathroom..." - starting all over again. Let's see if Suarez survives his rookie year.   

Work on the interceptor tunnel as part of the mega-project to clean up the Bay of Panama which will be built by the Odebrecht company could start as soon as August 2010, with the arrival in Panama of a new Tunnel Boring Machine (TBM) - EPB Shield - made by the German company Herrenknecht. The tunnel should be completed by the end of 2012, with the help of this huge machine. The TBM is 177 meters long and 3.6 meters in diameter. It's worth more than $40 million dollars and has been named "Gloria" in honor of President Ricardo Martinelli's mother. The machine - painted with the colors of the Panamanian flag - will leave for Panama in the first week of July, to be assembled in about a month. The TBM was delivered on Tuesday in Schawanau, Germany, to executives of the Odebrecht company.

This machine will be used to dig a 8.1 kilometer long tunnel from Nuevo Reparto to the Coastal Strip, where it will tie in to the Balboa inter-connector. The tunnel will have an internal diameter of three meters and will be covered with concrete and PVC. In Nuevo Reparto a pumping station will be built to drive the water from the tunnel (at a depth of 25 meters) to the wastewater treatment plant, located near the mouth of the Juan Diaz river.

Editor's Comment: See what you can do when you have money to spend? Today most of the "rivers" that run through Panama City toward the Bay of Panama are, in fact, more like open sewage canals. The infrastructure under the city is crumbling, and every time a sewage pipe collapses the water backs up, overflows somewhere, and then just finds it's way to the "gray water" rain runoff. All of this then gets flushed into the Bay of Panama. The Republic of Panama has been a relatively poor nation for most of its existence. It's taken the country a full ten years, after the departure of the US military bases and the turnover of the Panama Canal to full Panamanian control, to get its act together to the point where major projects such as this can be funded by the healthy and growing economy. Governmental corruption is declining (slowly). If you had told me 24 years ago when Noriega was still in charge that eventually there would be a TBM boring a tunnel under Panama City to collect and process runoff water to clean up the Bay of Panama I would have said you were on drugs... It might take ten years or more, but eventually there will be swimming beaches on Ave Balboa - like there were in the 1930's and 1940's when Panama City ended just past Parque Urraca.   

The Government of Panama is making a thorough study of the environmental impact that could be caused by the installation of a new land based electrical connection with Colombia. The Energy Secretary of Panama, Juan Manuel Urriola, said progress has been made in this environmental study "so we can really know the potential impact, and we are not ruling out the environmentalists," he added. "The environmental impact study being done, because the other possibility is that a connection through the sea would cost $60 million dollars more," he said. Urriola said the electrical line would cost about $600 million dollars to install. (El Siglo)

Editor's Comment: The government of Colombia has been pushing for this for a long time. Panamanians are generally afraid of Colombia (and Colombians) and they see the Darien as one huge barrier against the potential for invasion. Really. The installation of this new high tension power transmission line between Panama and Colombia would allow for power to flow either way, as required, depending on the current conditions. For example, when the there is a drought in Panama and the reservoirs are drying up, Panama's capacity to produce hydro electrical power is diminished, so purchasing power from Colombia would be an option if this line were built. Likewise, when Panama is producing a surplus that energy could be sold to Colombia if needed. Strategically speaking, more and better infrastructure is almost always a good thing in the long run.   

The Social Security Fund of Panama will invest $250 million dollars in bonds to finance the purchase of the Northern and Southern Corridors, announced today the Director General of the Social Security Fund, Guillermo Sáez Llorens. The official made the announcement after meeting yesterday with President Ricardo Martinelli, who confirmed that the State will purchase the highways. Saez Llorens said this will be the best way to invest the Social Security Fund's money, because it will yield between 3.5% to 4% more in interest than the money is currently earning in a deposit account. Saez Llorens made the remarks while inspecting the hospital in Changuinola, Bocas del Toro province. (TVN Noticias)

Editor's Comment: Panama's Social Security Fund is "liquid" in that it has more money in the bank than it pays out - they are in the black. The government of Ricardo Martinelli wants to "buy" both the Northern and Southern Corridors that were built on contract by two different companies, who continue to operate the toll roads and to collect the income. Martinelli has determined that this is simply a bad business deal for Panama, and over the long haul it would be much better to just buy out the two companies and to send them packing. The Social Security Fund has money in the bank and this idea of using that money to invest in the roads had been bouncing around for months. Today, it's a done deal. Of course the normal crowd of ankle biters will scream and yell and moan and bitch about how they think it's a bad idea, and everyone will just basically ignore them. In the long term the Social Security Fund will have even more money in the bank than it has now thanks to the interest payments received on the bonds, so it's a good deal in that regard. Hopefully Panama has learned its lesson and they won't ever pull a repeat of the mistakes made in building these two roads. Have you ever driven in to Panama City from the area of Tocumen on the Southern Corridor in the morning during rush hour? It's literally paying money to sit in a traffic jam - not good.   

For more than 30 years the different administrations that have been in control of the government in Panama have all promised to build a road to link the provinces of Colón and Bocas del Toro along the extensive Atlantic coastline. To date, only the Inter American Highway crosses the length of the Isthmus of Panama from Chiriqui to the province of the Darien. However, the Northern part of the country remains cut off by land, and by sea access is cumbersome. Mario Miller, the Deputy in the National Assembly who represents the 1-1 District, said the realization of this and other mega-projects will promote sustainable and integrated development that will define both the present and future of Bocas del Toro.

230 km - The road would form the hub of communication in the Northern region of the country and would be more than 230 kilometers (143 miles) long, linking the town of Miguel de la Borda, in the District of Donoso, province of Colon, with the town of Rambala in the district of Chiriqui Grande, Bocas del Toro. In 2008, Carlos Ho, the Director of Special Projects of the Ministry of Public Works, estimated the project would cost $350 million dollars and take about three years to build. According to Miller, the project is one of the most ambitious goals on the agenda of president Ricardo Martinelli, and the proposal is being called the "Gran Costanera" (Grand Coastal.)

Meanwhile, the PRD lawmaker from the same province Benicio Robinson believes the project could bring development to the province, but he doubts the government is serious. "That is just another lie being told by this administration," he said. But Miller rejects this criticism and says the government has allocated $150 million dollars to start the implementation of the project.

Ancon asks to participate - Meanwhile, Alida Spadafora, the Director of the National Association for the Conservation of Nature (Ancon), made it clear she is not opposed to the governments decision to build the coastal highway project, but asks that first the project should be analyzed with caution. She said the opening of this route will have a direct impact on the Mesoamerican Biological Corridor, which links the region of Chocó, in the Darien, to Southern Mexico. A road of this type could affect different systems of mangroves and forest system that form the biological corridor. Therefore, she said she has asked the Minister of Public Works, Federico Suarez, for advance information on the progress of the project, and what their goals are, in order to make the appropriate comprehensive analysis of the economic, social and environmental implications of this road while taking climate change into account.

The Opinion of the SPIA from Bocas - Jorge Pinto, the President of the Society of Engineers and Architects, Bocas del Toro Chapter, thinks this road project is unnecessary, and that beyond economic benefits, there will be a direct and considerable impact on the flora and fauna of the area once construction begins, which will only get worse once the road is opened. Which is why he thinks the road from Chiriqui to Bocas del Toro should be fully rehabilitated and not only at critical points. What's more, he said, the potential implications of this expensive project have not been adequately considered.

Those absent - But those were not even consulted and only know of the plans to build this project through commentary on the radio are the Ngäbes Buglés. Rogelio Moreno, Chief General in rebellion, said the construction of this road would affect communities such as Kusapín, Kankintú, Río Chiriquí, Ensenada, Santa Catalina, and others that are home to thousands of his brethren. "We have not heard anything about it and we want them to consult with us if the government intends to undertake this project which will affect the region." (la Prensa)

Editor's Comment: This road would open up the entire Atlantic Northern coast to development, generating billions of dollars in new Foreign Direct Investment. This area is beautiful, and in reality the road should have been build generations ago. Hop in your car and drive to Miguel de la Borda sometime to see for yourself. And, imagine being able to drive to Bocas del Toro is about three hours or less from Panama City. Can anyone say "lobster for lunch" ?   

The Inter-American Development Bank, the Andean Development Corporation, the European Investment Bank and Citibank have confirmed their interest in providing funding for the Metro mass transit project in Panama. If you add up the amounts these four entities are willing to loan, the Government would have access to the $1.5 billion dollars the project is estimated to cost. Although the Ministry of Finance also has not ruled out using State funds, most of the project will be financed with new debt. At the end of May 2010 Panama's total debt is just over $11.17 billion dollars. (La Prensa)   

The Cabinet Council authorized the Ministry of Government and Justice to sign the contract for the Design, Construction, and Equipping of the New Prison Complex - the "Nueva Joya" - which will be delivered as a "turn key" project by the consortium UM Panama, the only bidder that fully met the requirements established in the Statement of Charges during the Prequalification Public Ceremony, held on 17 March 2010. The signing of this contract, for the sum of $148.1 million dollars (plus 5% tax) for a total of more than $155.5 million dollars, is for the design, construction, and equipping of a "prison city" of first world quality that would have a capacity to house approximately 5,500 prisoners. The construction of the new prison will take an estimated 36 months, and is expected to generate a significant number of both direct and indirect jobs. (TVN Noticias)

Editor's Comment: Now, was that so hard? The Panamanian government is finally going to spend a significant chunk of change - more than $155 million dollars to be exact - to build a new prison facility. Prisoners have been warehoused at the "La Joya" and "Joyita" facilities for more than 20 years, and the conditions there are terrible. So, there goes another large government spending project, and as usual most of that money will stay right in the Panamanian economy, being spent on employees and labor, equipment rental, fuel, materials, services, etc. These are the kinds of projects that will continue to fuel the Panamanian economy for years to come. And more importantly, it's about time - and upgrade to the prisons was way over due.   

Employees from the company Norberto Odebrecht are now working in Curundú. The company has installed trailers that will serve as mobile office space for their people, who are conducting social, technical, and environmental studies of the area, as part of the project to renovate the troubled area in the heart of the city, which will cost a total of $94.3 million dollars. The presence of these simple trailers are the first tangible symbols of change for the impoverished neighborhood. (La Prensa)   

Panama's Secretary of Energy, Juan Manuel Urriola, announced the possibility of developing geothermal energy in Panama to produce electricity. Urriola said the country has a geothermal capacity and that the concept will be "placed on the table" for possible future development. Urriola concluded that overall, Panama's ability to produce electricity is in a "healthy condition" and that he thinks that due to planning they will be in good shape from now and for the next five years. (TVN Noticias)

Editor's Comment: For the past couple of years in a row, particularly during the dry season and with the increased emphasis caused by strong El Niño ENSO conditions in the Pacific Ocean, Panama's ability to produce enough electrical power in order to meet the needs of the growing economy have been marginal. Much of the country's power comes from hydroelectric plants, and when there are decreased amounts of rainfall due to El Niño conditions, the reservoirs dry up and there's simply not enough water behind the dam to turn the turbines. There are supposed to be enough of a "thermal" generating capacity - meaning plants that burn either bunker fuel oil or coal - to generate power to fill shortfalls. Panama has authorized the construction of literally dozens of new smaller hydroelectric plants to increase capacity overall, and is looking into alternative solutions such as wind power and now the possibility of geothermal in order to boost capacity. Panama as a nation is growing at a steady clip, and the basic underlying fundamental infrastructure has to expand at the same rate in order to meet the new demand. Geothermal is one of the "greenest" ways to produce electricity, using the heat of the earth to create steam which turns a turbine, and creates practically no greenhouse gases.   

The old, dilapidated walls of the building known as the "Renta 10" located in Calidonia, one of the rental buildings built by the Social Insurance Fund between 1944 and 1948 for low-income families, began to be demolished yesterday. It took more than ten years to evict the 100 families who lived there, due to the economic compensation process. Its last inhabitants left the old structure in 2009. This building was the first of the "Rentas" built on Calle 22 and was designed by Architect Ricardo Bermúdez in 1944 under a concept of strict functionalism. (La Prensa)

Editor's Comment: More than 65 years ago the government of Panama got into the business of being a landlord, building these kinds of buildings and renting them out to low income families. Now the concepts have evolved and modernized, and instead of the government being the owner, they will still build properties with state funds, and finance the mortgages with government owned banks, provide incentives, low cost loans with subsidies and things like that, but the actual ownership and title to the property will be transferred to the tenant. They can sell or transfer those rights, within reason and according to law and contracts, however after living there for twenty years or so they will own the apartment outright, be responsible for its maintenance, etc. Many of the horrible looking buildings in Chorillo and Curundu are government owned slums. No one pays to maintain them, and why should they? There is no pride of ownership if you're not an owner, if you have nothing invested, and nothing to lose. In my humble opinion all of those old structures should be torn down and replaced with modern structures. The government can build and sell them at cost, and since they are not trying to make a profit they can offer them at much more affordable prices to low income families who would not be able to qualify for any other kind of home, loan, or housing. I am in favor of the government giving a "hand-up" as opposed to a "hand-out". The people who lived their entire lives in the "Renta 10" now have nothing to show for it, because they spent their entire time as renters. The government took in all of the money, which was then stolen by corrupt government officials. It's a very bad system that should be abolished immediately, or as soon as practically possible. And, ten years to clear out a building that's been condemned? That's ridiculous...    

On Monday the Executive Secretary of the Metro in Panama, Robert Roy, gave the official digital version of the Statement of Work for the building of the Metro Line 1 of Panama to the representatives of the three consortia that passed the pre-qualification process and who will bidding to win the contract. According to the bidding process, on Monday May 17 the representatives of the three consortia, together with the Secretariat of the Metro, will take a tour of the sites where the project will be built. In addition, the will also hold clarification meetings 18, 19 and 20 May, according to the needs of the consortia participants. (Panama America)   

The project to build a new Metro system in Panama City, the flagship project of the Martinelli administration, will generate about 3,000 new jobs, announced yesterday the executive secretary of the Metro, Roberto Roy. Foremen, masons, electricians, engineers, transportation specialists, and electrical engineers will be some of the vacancies that will have to be filled. However the secretary of the Metro said that between 30 to 50 foreign professionals who specialize in handling this type of infrastructure, will be hired, because Panama does not have this type of qualified personnel. The project is expected to begin operations in early 2014. (La Critica)

Editor's Comment: That makes sense. If there are any Panamanians in the room who have experience and who have already built at least one world-class subway system, please raise your hands... Of course Panama is going to have to bring in some outside expertise to work on this project, but the bulk of the labor will be done by Panamanians, and most importantly all of the money will be spent here. About half of the line will be underground, running under Via Via España for the most part, and then later it will be above ground or elevated. That should be a real hoot - traffic in the middle of the city will be screwed for years while construction is underway.    

Panama's Civil Aviation Authority (CAA) submitted a draft of a plan to build a new airport in the central provinces yesterday, outlining the anticipated costs for the project. Yesterday the National Assembly reported the presentation by the CAA that totals about $100 million dollars. Although the National Assembly did not specify the location of the new airport, on Thursday president Ricardo Martinelli said it would be located in the town of Aguadulce in the Coclé province. Rafael Barcenas, the director of the CAA, said that so far this year they have invested approximately $40 million dollars in infrastructure. Barcenas spoke before the Communications and Transportation Commission of the National Assembly and presented a report on his management of the CAA. He said his primary objective is to budget and complete projects that were started (under the previous administration) but never finished. (La Estrella)

Editor's Comment: Somebody spoke to me about this article, saying rumors of the imminent arrival of Disney and Mickey Mouse to Panama is prompting the investment. Hey, I thought that was going to happen in Gorgona... (grin) But wow, $100 million dollars? That's a whole lot of airport so it's going to be international and capable of receiving tourists who want to enjoy Panama's Pacific beaches, providing easier and faster access than Tocumen. Aguadulce is a good spot. From there you can hit the already developed Pacific beach areas, shoot down to the Azuero, or head off towards Santiago. The value of real estate in that area just went up. Gentlemen, start your engines...   

The contract endorsement by the Comptroller General of the Republic to give the order to proceed to the company Constructora Norberto Odebrecht with the project to rebuild the area of Curundú is still pending. Panama's Housing Minister Carlos Duboy said on Channel 13 Telemetro news this morning they had expected the project to being in March, but now they hope to have a ceremony to place the cornerstone next week. The project to rebuild Curundu includes the construction of more than 1,000 homes in a 24 hectare area which will benefit more than 5,000 people. Duboy said the construction of this project began with much uncertainty on the part of residents, mostly over concerns that people who currently live in other areas will benefit from the project, but the Minister confirmed that "Curundú will be for the residents." The minister said residents will pay from $40 to $50 per month for a 45 square meter residence, and the project should be delivered between 2011 and 2012. (La Estrella)   

About $3.9 billion dollars will be invested over the next four years for the construction of 22 new sources of power generation in Panama. These projects will generate approximately 1,061 megawatts (MW) to be added to the current installed capacity of about 1.208 MW - which is very close to the actual demand of 1,153 MW. The biggest investment will be in new hydroelectric projects that will be built at a cost of more than $1.7 billion dollars. In addition two wind farms will be built with an investment of $1 billion, and another $1.2 billion will be spent to build new thermal (bunker fuel burning) generation plants. Currently there are 19 hydroelectric projects under construction with a total installed capacity of 723.60 MW, 2 wind projects (330 MW) and one thermal plant with an approved licensed (8 MW), according to the Public Services Authority (ASEP).

There are already a total of 52 concessions for power generation through hydro, 25 grants and 20 temporary licenses for wind projects, and 3 provisional licenses thermal projects. The companies responsible for building and operating these projects are both foreign and domestic, chosen mostly by competitive bidding. "The expensive projects are usually foreign investment and the less expensive projects are generally domestic investment," said Rodrigo Rodriguez, National Director of Electricity for the ASEP.

Projects: The most expensive hydroelectric project currently being built is located in Changuinola and being built by the company AES Changuinola S.A., with a cost of $600 million dollars. This project is 60% complete and is scheduled to begin operations in May 2011 with a generating capacity of 223.00 MW. The second most expensive project is valued at $193.28 million dollars, located on the Río Chiriquí Viejo under the auspices of the company Ideal S.A. This dam will generate 85.90 MW and as of March 2010 is about 25% built. The schedule for this project says it should begin operations in December 2011. The same company, Ideal S.A., will also build the third most expensive hydroelectric generation project, also on the Río Chiriquí Viejo, at a cost of $127.8 million dollars. This project is about 75% built and will generate about 56.80 MW. Meanwhile, the company Fersa Panama SA will build two wind farms located in the province of Coclé. (Panama America)   

Panama will initially spend $1 million dollars, as the start of a project that will eventually build houses for 800 low income families in the area of Curundú. Panama's Minister of Housing and Land Management, Carlos Duboy, told local media the majority of residents who will be able to benefit from "Proyecto Curundú" are people with "informal" jobs, who will be required to pay a monthly fee commensurate with their income. Duboy also said each person will receive a title as the owner of the apartment, in exchange for paying a nominal fee to the mortgage bank. He said the first apartments of the project should be ready in 2011. The government will hold a ground breaking ceremonial laying of the cornerstone after Easter. He went on to say the project includes sports fields, churches, parks, and even Internet sites. (Source - La Estrella)

Editor's Comment: In earlier articles the government has said they expect to spend about $30,000 to build each apartment. Since they will build 800 units, the total cost should be about $24 million overall. It's being done on contract, and eventually it will be a money maker for the state. The government is simply acting as a broker to get the financing and to have the houses built. Once the contractor finishes the homes the units are turned over to the residents. The residents get both title and a mortgage. They can continue to live there as long as they pay the mortgage, and the monthly fee will be very low, like maybe $100 bucks a month or something like that. The new owners will also be able to sell the unit to someone else in the future should they choose to do so. The government just gets the units built, then passes the debt to the banks, who then breaks it up into 800 smaller manageable units and passes it down to the residents. When it's all said and done the "cost" to the government will be negligible, and the blight that is Curundu today will be significantly cleaned up. The residents (as owners) will have a stake in keeping it up and maintained - if they don't then their property will lose value.   

The Cabinet Council authorized the signing of a syndicated credit agreement (through several banks) for $75 million dollars to finance the project to improve and expand the Tocumen International Airport in Panama City. The contract will be signed between the corporation called Tocumen International Airport, as the borrower, and Banco Nacional de Panama, the Caja de Ahorros, and the Bank of Nova Scotia. The National Bank of Panama will participate as an agent. The cabinet also endorsed during its meeting last night a proposal for the approval of the Convention for the Promotion and Reciprocal Protection of Investments between the Government of Panama and the State of Qatar, signed in Doha on 1 March. Furthermore, the Cabinet Council gave a green light to start talks towards gaining possession of the former Embassy of Great Britain (Avenida Balboa) to install a burn center there. This proposal was supported by the first lady, Marta de Martinelli, who was given an opportunity to speak. The initiative is also being driven by the Minister of Health Franklin Vergara. (Source - La Prensa)   

The National Economic Council (CENA) approved $218.5 million dollars for the Ministry of Public Works (MOP) to extend the Madden Highway as far as the "Four Stops" in Colon. The Deputy Minister of Economy and Finance, Frank De Lima, said when this draft Addendum is signed with the Concessionaire Madden (Odebrecht) the institution can finish the interconnection from Madden to Quebrada Loopez, and then from there to the Four Stops in Colon. Meanwhile, for the IDAAN the CENA approved a request for an exemption for a requirement to hold a public bidding process, in order to sign an agreement with the Bocas Fruit Company LLC for $937,393 for the supply of electricity in IDAAN facilities located in Almirante and Changuinola. The CENA also approved a draft lease with investment and preferential rights for the Ministry of Economy and Finance, to sign a contract with the company PETROPORT, SA, for the lease with option to buy 12 hectares of land in the area of Isla Telfers, in Cristóbal, in order to expand the petroleum free trade zone. (Source - La Critica)

Editor's Comment: Right now the new highway towards Colon ends just before Sabanitas. This $218.5 million dollars will be spent to extend the road as far as the "Four Stops" just outside of the City of Colon proper. Great. The more highways the merrier. You can now fly on that new road to Colon and get there in no time flat (on the highway) then you immediately drop back down into the muck where the road ends.   

The government of Panama will complete the section of the Northern Corridor which will connect the area of 24 de Diciembre to the Brisas del Golf, as announced today by President Ricardo Martinelli. He said the interconnection of the Northern and Southern corridors are among the projects that will be completed by his administration. (Source - Telemetro Reporta)

Editor's Comment: Excellent. Right now you can't get to the Tocumen Airport from the Northern Corridor. If you are on the North side of the city, you have to fight your way through city traffic to get to the other side (and vice versa.) Panama City grew from it's start in Casco Viejo steadily over the years towards the West, with growth hemmed in on the Southern side by the Pacific Ocean and on the Northern side by the Panama Canal Zone. Another example of these limitations - the first community on the other side of the bridge is Arraiján, located precisely five miles from the centerline of the Panama Canal. As a result of these limiting factors all of the major roadways in Panama City run East-West. This is true for Ave Balboa, Calle 50, Via España, Via Transistmica, and Tumba Muerto. There are no good fast North-South routes. If you're in El Dorado for example and you have to get to Punta Paitilla, then you're faced with having to cross all five of those major East-West roads, and the priority is given to them, so it takes forever to work you way through the middle of town. Then add payday, some new screwed-up "intelligent" traffic light that doesn't work, thirteen people who decided to protest today, and a minor fender-bender and your entire day is shot by having to drive four miles. Panama should keep building as many roads as possible, and make them free from tolls. There is all kinds of land available for development close to the city, if people could just get there.   

Nine scanners purchased by the National Customs Authority for $24 million dollars in December 2007 from the Chinese company Nuctech were never installed. The expensive equipment has been left to rust in the parking lot of the institution, while Customs inspectors continue to review commercial cargo manually at most checkpoints throughout Panama. The current Director of Customs, Gloria Moreno de Lopez, confirmed the situation with the scanners and said that for the moment goods passing through customs checkpoints are being inspected in an "intrusive" manner. Lopez Moreno said in September last year they began to operate the first scanner at the customs checkpoint at Guabalá in the province of Chiriquí, but it broke down after only three months. Other pieces of equipment are in the same situation. The National Customs Authority said they would sue for the guarantee for this equipment, however the sales contract from the company states the performance bond was only valid for "270 days, plus 60 months maintenance." La Prensa tried to obtain a comment from the former Director of Customs Vilma de Luca, but telephone calls to his office and email went unanswered. (Source - La Prensa)   

The government of Panama is planning to spend more than $800 million dollars in the next four years on infrastructure improvements to develop tourism and they hope the result will be a great benefit for the people. The spokesmen and representatives from the different areas where these infrastructure projects are planned say the government should consult with the public to ensure they are necessary and to make sure they will not cause any kind of irreversible ecological damage. According to the Government's Strategic Plan for 2010-2014, the investment and regulatory changes in the tourism sector should be geared toward those destinations with greatest potential to eventually become world class luxury destinations. Among those areas where the government plans to immediately begin developmental projects are the coastal area south of Farallon and the Pearl Islands. Meanwhile, among the areas where projects are planned in the intermediate term include Isla Colon in Bocas del Toro and Boquete - these two areas are included in the Western Strategy. Finally, Pedasi and Santa Catalina are among the long-term opportunities, and according to the document these priorities came about as a result of the preferences of both luxury tourists, as well as the inherent characteristics of the destinations.

Angel Gonzalez Diaz, the Secretary General of the Bocas del Toro Alliance, said they are not against progress, but they are against projects that would destroy the natural resources of the province and negatively affect the development of tourism. "It is not true that all roads are good for the province, there are projects that we consider harmful to the region," he said. Diaz emphasized the projects should be consulted with the people who live in the region, and decisions should not be taken in Panama City without knowing what the people and the organizations who live there want. "In Panama things are always imposed upon us, and it is very important to consult with the locals," he said. Without hiding his anger said, "I do not know where they got the idea that we need so many roads, but they should fix the roads that already exist and stop creating more conflicts over the lands of protected areas. What we need is that the existing roads are of good quality." He added that "the Government should not further impact the area of the archipelago, but they should conduct some projects in Almirante to allow for more development and at the same time they should be complemented with projects in Bocas del Toro and Changuinola in the development of the whole province. For example, he cited one idea from the Bocas del Toro Alliance is that, instead of fixing the airport on Isla Colon, the government should construct a larger airport in the area of Almirante where there is much more space than on the island, and in this way it would help the region emerge from the economic depression currently affecting the area, he concluded.

Meanwhile, Nereida Moscoso, a private sector representative in Pedasi, said that for the moment the roads in the region are sufficient, but water treatment is urgently needed because there are several multi million dollar projects under construction in the region. (Source: Panama America)    

Panama's president Ricardo Martinelli will depart the country on Sunday, 28 February for a working trip to Qatar and Israel, announced the Ministry of State Communications through a press release. Accompanying the president on this trip will be Vice President and Foreign Minister Juan Carlos Varela, Deputy Foreign Minister Melitón Arrocha, the Administrator of the Tourism Authority of Panama, Solomon Shamah, the director of the National Police, Gustavo Perez and adviser to the president Larry Maduro. "Martinelli will visit the Industrial City of Ralaffan, the largest gas complex in Qatar, constructed to exploit the development of the oil and gas industry in that country," the press release said. The President will arrive in Israel on Monday, 1 March, where he make a working tour that will include a meeting with this Israeli counterpart, Shimon Peres, with whom he will deal with issues of cooperation in security, agricultural development and technology transfer. In both countries, the President will promote investments in Panama, as businessmen from Israel and Qatar have expressed interest in developing projects in Panama, according to the Ministry of Communication. (Source: La Estrella)

Editor's Comment: I spoke to someone who participated in the early phases of the "refinery boom" that was supposed to occur in Panama several years ago under the administration of Martin Torrijos. He told me "they wanted way too much bribe money, so we said 'screw it.'" Hopefully Martinelli will be able to convince those same people to come back and to take another look at building a refinery in Panama. It still makes good sense on a macroeconomic level. And, Panama wants to spent money in Israel to upgrade security and counter drug elements. So it's to Qatar first for the refinery, then off to Israel for the UAV's. Check.   

Panama's National Institute of Aqueducts and Sewers (IDAAN) cut water service today to about 700 customers in the former Panama Canal Zone areas of Clayton, Albrook, Curundú, Diablo and Paraíso who owe the institution more than $300,000 combined. Rolando Bocanegra, Head of Marketing for IDAAN, confirmed the massive service cutting operation to customers who not paid their water bills in years, because they have been using the excuse that they have been making payments to the Inter-Oceanic Region Authority ( ARI) as part of their lease. Bocanegra said the measure could upset the middle class and professional customers who live in these areas, even through they have been publicizing the information about the delinquent payments and the need for customers to establish a plan to get caught up. He said that in these areas often times there is just one water meter installed for a group of houses, however they have been telling the home owners since last year that they will have to make adjustments and to have new water meters installed at their own expense. Thus far the nationwide program to cut water service to those who owe money to the IDAAN has resulted in payments of more than $2 million dollars of the total debt, which is currently more than $120 million dollars owed. There are more than 500,000 customers nationwide. (Source: La Critica)   

Petroleum exploration and production company Global Energy Development plc revealed on Friday the signing of a rig contract with Saxon Energy Services de Panama SA. Pursuant to the contract, Global Energy will drill the Rio Verde 2 exploratory well on an identified geologic structure and previously acquired 3D seismic by the company, within the Colombian Rio Verde contract. At the beginning of March this year the company stated that the rig will be mobilised, the well drilled to a proposed depth of about 12,500 ft targeting three different formations, completed and tested before May 2010. Saxon was also the previous supplier of the rig and other related services for two other wells drilled on the contract area by Global Energy. Financial details were not mentioned.

Editor's Comment: It would seem to make sense that Panama might have some petroleum reserves that might be tapped. Both Venezuela and Colombia have oil, so maybe some of the same geological features might be available in Panama, particularly offshore. There has been talk along these lines forever. I think many of the projects that were supposed to come together under the administration of Martin Torrijos never came about because government officials wanted bribes for everything, so serious international developers simply walked away. Now, with Ricardo Martinelli at the helm, we might see things like the refinery projects coming back to life. Let's see. Oil in Panama would be a great thing for the country. Jobs, tax revenue, serious and significant amounts of new foreign direct investment, and eventually lower domestic fuel costs, lower domestic energy costs, manufacturing spin-offs, etc. Drill, baby, drill...