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...   

A formula that allows the company PYCSA to include interest on the debt for the construction of the Northern Corridor as part of the recoverable amount, makes it practically impossible for the highway to return to Panama as stipulated in the contract. The Minister of Economy and Finance, Alberto Vallarino, said on TVN news that because of this measure it is mathematically impossible for Panama to recover the Northern Corridor. "This is an incentive for the company to remain in debt for life," he said. The audits of the Northern and Southern Corridors have been completed and right now the conclusions and recommendations are being prepared, which will be released after the Carnival celebrations. With regard to the companies with the concessions Vallarino also said that they would ask PYCSA to quit their claim on the concession for the length of road from Brisas del Golf to Tocumen, so that the government can finish this project. (Source: La Critica)   

Preliminary analysis indicates the the Metro subway system to be built in Panama City will increase demand for electricity by about 25 megawatts per month. Proportionally, the Metro system operating at full capacity would consume more electricity than currently being used by the Albrook Mall and the new Metro Mall. Statistics from the National Dispatch Center indicate Albrook Mall uses about 12 to 15 megawatts per month on average. When the Metro Mall was opened initially it consumed about 5 megawatts per month, but the mall is quickly expanding and with it the monthly electrical consumption. The Executive Secretary of the Metro, Roberto Roy, said that studies put the energy demand of the project at 25 megawatts, as long as the surface level train stations are not air conditioned. Faced with these facts, the operation of the underground Metro subway system will be closely linked to the capacity to generate electricity in Panama to ensure the trains will be able to operate continuously, and that the system will not be paralyzed in the short term due to shortages in the ability to produce electricity. "The investment of the Metro subway system is a social investment, it is a project of the State," said Roy in his appearance before the Deputies of the National Assembly. "This service should be provided at a cost that everyone can pay. It would be absurd to build the Metro subway system and then try to charge $2.00 - no one would use it," he said. In Panama, 60% of the electrical energy is produced by hydro electric plants and 40% by thermal or fuel burning plants. Demand for electricity in Panama in the third quarter of 2009 increased 6.2% compared to the same period in 2008.

According to the Comptroller General of the Republic, during this period 254.5 million kilowatts were billed, with 59.6% of consumption concentrated in the residential sector. Only the industrial sector showed a decrease in requirements of 2.2% in phase analysis. Last December, there was a new record for energy demand across the country, reaching 1,153 megawatts, as reported by the National Dispatch Center. That month, the available capacity of the system was of 1,256 megawatts, just 103 megawatts over demand. All these consumption numbers may vary drastically once the Metro project begins operation. The project hopes to start construction in July 2010. This project will have an estimated cost of between $800 million to $1.3 billion dollars. The Executive Secretariat for the Metro, who is charge of the project, has already allocated $30 million dollars for the start of the project, which will be paid primarily in severance to obtain the required rights of way. Last January 6, 2010 it was announced that the route of the first line will start at the bus terminal in Albrook and will end in Los Andes. Roy said the first subway line will have a length of 14 km. (Source: La Critica)   

Panama's National Institute of Aqueducts and Sewers (Idaan) reported this afternoon that users in the area of Punta Pacifica, including the hospital, were left without water service due to a sudden rupture in a 16-inch line. This failure forced the closure of the water circuit so that IDAAN could make the required repairs. The rupture was caused by a company that was working in the area installing underground cables. It is expected the repairs will take about eight hours to complete. Work started this afternoon at 1:00 pm. (Source: La Prensa)    

People living in La Chorrera will have to go without water service for four weeks, during which time IDAAN will supply and distribute water to residents using tanker trucks. The newly built water treatment plant at Mendoza has to be taken off line so that IDAAN can execute the final tests required to finish the construction and acceptance of the plant. (Source: Dia a Dia)

Editor's Comment: The new water treatment plant at Mendoza will have a capacity to produce 40 million gallons of water, and it has always been scheduled to come on line in February 2009. Work started on the new plant on 1 March 2008 and was built at a cost of $44 million dollars. The plant is located in the area of Mendoza in the district of La Chorrera, and was built as a joint venture between the Panama Canal Authority and Panama's National Institute of Sewers and Aqueducts (IDAAN). Raw water to feed the new plant is drawn from Gatun Lake and is fed via a pipeline to the water treatment plant that is six kilometers away. The company Biwater International will deliver the project on 14 February 2009. Once testing is done and the plant is accepted, it will provide water to some 200,000 inhabitants in the area of La Chorrera. I covered a gaggle in May 2008 when then president Martin Torrijos went out to tour the construction site. That article has a nice overview of this entire project.   

The Brazilian construction company Norberto Odebrecht, S.A. has won the contract to rebuild Curundú. The evaluation commission recommended that the contract should be awarded to Odebrecht because their proposal to complete the Curundú Urban Renovation Project represents the best value to the Panamanian state, said Panama's Minister of Housing and Land Management, Carlos Duboy, in a press release. It was learned that, in the opinion of the commission, the company met all the requirements contemplated within the statement of work, and their bid received the best score and best value for the state. The project is comprised of rebuilding a 12 hectare area of land in Curundú, in the area currently known as Hollywood, an area that borders the Juan Demóstenes Arosemena stadium. The project calls for the construction of 1,000 housing units that will benefit approximately 5,000 residents of the area. During the administration of Martin Torrijos, Odebrecht won the contracts to build the Coastal Strip, to extend the Northern Corridor to connect Panama City with Colon, the Remigio Rojas irrigation system in Chiriquí, and the construction of a tunnel that is part of the project to clean up the Bay of Panama worth $139 million dollars. The company was also the target of criticism from then-candidate Ricardo Martinelli during his presidential campaign. (Source: El Siglo)

Editor's Comment: Good news. I love this project. I've walked the "streets" of Hollywood on several occasions, and every time I've been in there I had the same thought. It should be bulldozed and replaced with something much better. I first learned about Hollywood from a food friend of mine who was born and raised there. He took me there and showed me around in 1988 - at a time when it was generally dangerous to be a gringo military guy in many places in Panama City. But, accompanied by "Quimi" I was practically untouchable. "Quimi" grew up with dreams of being a professional boxer - and he learned the "ropes" fighting as a child. The old men in the neighborhood would create street boxing matches - pitting two little kids of about the same height and weight against one another. The organizers would pay the kids 25 cents per completed round with a 50 cent bonus for a knockout. My friend Quimi said he already had about 1,000 rounds under his belt before he ever fought in his first "official" amateur bout. He went pro but never found the fame or riches he was seeking. His claim to fame was that he could accurately imitate the stance and style of practically any boxer, and in that role he fought in the ring against Panamanian great Roberto Duran as his sparring partner. Quimi would study replays of Sugar Ray Leonard's past fights and then (uncannily) "turn into" or imitate Sugar Ray Leonard as a sparring partner for Duran. Anyway, it was through Quimi's eyes that I met Hollywood for the first time. He took me back to the little tin-roofed shack where he was born. As they often say in Curundú, the neighborhood doesn't necessarily make the man.   

By DON WINNER for Panama-Guide.com - Panama's National Public Services Authority (ASEP) has issued four resolutions granting provisional licenses to Unión Eólica Panameña S.A., for the installation, operation, and exploitation of four wind parks in Panama. The four wind parks are being called the Rosa de los Vientos, Marañón, Portobelo Ballestillas, and Nuevo Chagres. This new permission to develop wind power in Panama was granted through the issuance of four ASEP resolutions, AN No.3256-Elec on 20 January, and AN No.3231-Elec, AN No.3230-Elec, and AN No.3229-Elec on 13 January 2010 - all four resolutions are available on ASEP's website. The four projects call for the company to install a total of 265 wind turbines. The company will use 97 turbines generating 2 MW each, and another 168 turbines generating 850 kW each at the four sites. Once installed and operational, the wind parks will generate a total of 336.8 MW of electricity.

• The Rosa de los Vientos wind park will be located in the areas of El Coco, Coclé, Cañaveral and Penonomé, in the district of Penonomé, province of Coclé, with an installed capacity generate 194MW, consisting of 97 wind turbines, each generating 2 MW.
  
  
• The Marañón wind part will be located in the areas of Juan Díaz and El Coco in the districts of Antón and Penonomé, province of Coclé, with an installed capacity to generate 40.80 MW, consisting of 48 wind turbines, each generating 850 kW.
  
  
• The Portobelo Ballestillas wind park will be located in the areas of Coclé and El Coco in the district of Penonomé, province of Coclé, with an installed capacity to generate 59.5 MW, consisting of 70 wind turbines, each generating 850 kW.
  
  
• The Nuevo Chagres wind park will be located in the areas of Coclé, El Coco, Cañaveral and Río Grande, in the district of Penonomé, province of Coclé, with an installed capacity to generate 42.5 MW, consisting of 50 wind turbines, each generating 850 kW.

The company will have twelve months to conduct their initial studies, after which the provisional permissions were be converted into a more permanent concession to build and operate these wind farms. According to the CIA Factbook, Panama currently has an electricity production capacity of 6.322 billion kWh. This project, using a .40% estimated capacity factor, should add approximately 1.18 billion kWh to the grid, representing a 17.6% increase in the total power generation capacity for the country. This is a very large and significant project which will reduce Panama's dependence on hydro and fossil fuel fired plants.

Copyright 2009 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.    

Panama will spend $300 million on a liquid natural gas, or LNG, terminal and $ 130 million on a gas-fired generating plant, the country's ministry of finance said in a statement Wednesday. The projects will help meet the country's growing energy demand, and reduce the use of liquid fuels, the statement said. The LNG terminal will allow the country to receive, store, and then regasify LNG cargos in Colon, which is near the Atlantic entrance to the Panama Canal. The projects will take around five years to complete. On Wednesday morning, the Chief Executive of Toronto-listed oil company Pacific Rubiales Energy Corp., Ronald Pantin, said the company plans to start exporting gas to Panama and elsewhere in the Caribbean in the near future. -By Matthew Bristow, Dow Jones Newswires.

Editor's Comment: Excellent idea. There goes another $430 million of additional government spending on significant infrastructure upgrades. Anyone keeping score? This should be great news for the people who live near the area where the terminal and plant will be built because it will bring additional jobs and spending for a least five years while the terminal and plant is being built, then long-term jobs to operate and maintain the facilities. Again, more good economic news for Panama. Keep it coming...   

This weekend Panama's National Institute of Aqueducts and Sewers (IDAAN) says they will cut water service to more than 4,000 customers who have not paid their bills. Specifically, teams will be dispatched to turn off water to houses and businesses in the areas of El Dorado, Tocumen, and Brisas del Golf. IDAAN sources say water service will be cut off for those customers who are more than 120 days in default, or those who are more than five months behind in paying their bills. They said currently IDAAN is owed a total of about $120 million dollars. However as a result of recent operations they have been able to collect about $1.2 million dollars of what they are owed. (Source: TVN Noticias)

Editor's Comment: Great. There have been several of these operations and they've collected just $1.2 million dollars - which works out to just 1% of the total amount in default. Want to collect this money in a hurry? OUTSOURCE! Give some enterprising company a contract to chase down customers who are in default, and pay them about 5% of whatever they can collect. That would work out to $60,000 for the $1.2 million already collected which ain't much, but it's also $6 million for the entire $120 million that's in default. Not a bad gig...    Click Here To Read The Full Article (1 words)

Panama's Minister of Public Works, Federico Suarez, said today that despite the skepticism surrounding the project, all of the conditions are ripe for the new Metro mass transportation system to be ready in the time stipulated, within three and a half years. Suarez, who gave his remarks during an interview on RPC television, said the government was considering possible setbacks, mainly due to the weather, but for now it appears they can accomplish their goal of having an integrated mass transportation system with the new Metro and Metrobus, in three and a half years. "The companies interested in building the Metro so far have said that three and a half years is a good period of time in which to accomplish the project," said Suarez, who also explained that 14 kilometer long route, which will have a cost of between $1 billion to $1.5 billion dollars, and perhaps less than $100 million per kilometer. "We have an exact base number, but we can not make that number public because it would compromise the bidding," he said. The first line of the new Panama City Metro system will be a system of trains that will cover the route from the National Transportation Terminal at Albrook to Los Andes in San Miguelito, with trains running in both directions. Parts of the system will be underground, and on other parts of the route trains will run on elevated tracks. The underground section will go from Albrook to the intersection of Vía Fernández de Córdoba with Vía Transístmica (in front of the Plaza Ágora), passing by the Plaza 5 de Mayo, Ave. Justo Arosemena and Vía España, while the part that will be elevated will run for all of Vía Transístmica until Los Andes. (Source: La Estrella)   

The widening of the highway to four lanes from David to San Felix and from David to Boquete is one of the topics being discussed today during the meeting of the Executive Cabinet Council that is taking place at the Hotel Bambito in the highlands of the province of Chiriqui. Panama's Vice President and Foreign Minister, Juan Carlos Varela, said on RPC radio that president Ricardo Martinelli will give the order to the Minister of Public Works, Federico Suarez, to hold the bid for the construction of these roads within the next 120 days. Varela said the expansion of the road from David to San Felix is a costly project which could have a price tag of as much as $150 million dollars. The expansion of the road from David to Boquete could cost about $30 million dollars and that project should be tendered in the coming months. He added that the situation of the banana workers of Barú and the problems of Puerto Armuelles will also be discussed during the meeting. (Source: Panama America)    

Of the fifteen companies that expressed an interest in winning the contract to build a government housing project in the area of Curundú, only three were able to submit their bids on time. They were Norberto Odebrecht, Constructora Urbana CUSA, and Constructora MECO S.A. A fourth company was disqualified for not having submitted their proposal on time through their legal representative. The company with the lowest bid was Odebrech in the amount of $94,363,500 while CUSA bid $94,933,650 and MECO, SA bid $95,397,750. The Minister of Housing and Land Management, Carlos Duboy, said that after the proposals are presented it will take about 20 days for them to announce the winner, as required by law. Duboy said a committee will be formed comprised of qualified representatives, two from the MIVI, one from the Ministry of Public Works, one from the Ministry of Social Development, and an independent architect-planner. The members of this committee will score or rank the proposals, based on a formula of 65% technical and 35% economic factors. Officially the project was initially estimated to cost $83,475,000. This urban development project, which will specifically be built in Sector S of Curundú, will provide homes for approximately 5,000 people. (Source: Melquisedec Quintero for El Siglo)

Editor's Comment: Well, there's another $100 million bucks the government will be spending in the near future. Most of that money will be spent on materials, labor, operating costs, fuel, logistics, equipment rental, etc., so, it's a good thing in much of the money will go right back into the local economy. This plan calls for a makeover of one of the worst areas of Curundú. The slums and shacks that are there right now will be ripped down, and this new project will be built there in its place. When they are done, the houses will be sold to the residents for about $15,000 each. The government will make low cost loans available and help even the poorest person to qualify. And here's the bid difference -hopefully these will not just be handed out and forgotten like a lot of other low cost MIVI properties that turn into slums in a matter of minutes.

   

By Yuriel Sagel for the Panama America - The government of Panama is analyzing several alternatives for the construction of the new subway system, and a decision will be announced early next month, said the Secretary of the Metro Roberto Roy. One route would go under study since the 5th of May Plaza, located in Calidonia, to Los Andes in San Miguelito. One of the possible routes being studied would start from the 5th of May plaza, then follow Ave Justo Arosemena underground as far as the current headquarters of the Formación y Aprovechamiento de Recursos Humanos (IFARHU), and from there it would follow Vía España until Ave Fernández de Córdoba. From there, it would turn towards Transístmica and finish in Los Andes. This route was confirmed by Roberto Roy, who said it is one of the alternatives being studied. "The public must be patient, because this is a study we are doing, the results of which we will release soon," he said. According to Roy, the final decisions of the routes that will be taken by the subway will not necessarily be the cheapest, but rather those decisions will be based on quality, service and cost. He explained that the details of this effort are very technical, and they are currently analyzing the costs of at least three different alternatives.

On the issue of payment of compensation for those persons who will be affected by the route selected and the construction of the Metro subway system, he said they had not yet reached that point. At this time Roy said he wants to avoid any speculation on this issue.

The project is scheduled to be built in several phases. Panama's Vice President Juan Carlos Varela said the first stretch of subway line competed will have a length of 14.5 kilometers and will be built at an estimated cost of $1 billion dollars - that is to say, each kilometer would cost about $68.9 million dollars.

Studies conducted in 2002 by the French company ALSTOM, estimated the cost of the metro at $100 million dollars. The company, experts in building infrastructure projects for power generation and rail transport, also did other studies 2002 for a monorail system that would cost about $70 million dollars, and a light train system that would cost about $50 million dollars.

Countries such as Brazil and Taiwan have offered credit to the government to finance the subway project, which also has the support of the Andean Development Corporation and the Inter-American Development Bank (IDB). In October 2009 it was determined that the Swiss-Mexican consortium POYRY/CAL, Mayor y Asociados, and the company Geoconsult would be responsible for providing consultation services during the process of design, bidding, and subsequently the execution of the construction of the project. Right now they are working on the planning phase, estimating costs, and technical feasibility. It is estimated that the public bid will be held in July 2010. The construction of the new Metro subway system is one of the flagship projects of the administration of Ricardo Martinelli, who seeks to replace the obsolete mass transit system based on used "Red Devil" school buses from the United States. The subway project would compliment the "Metrobus" project which is already running in the government to replace the buses being used in the capital city.   

By Denise Lara for Telemetro - A loud explosion woke residents of 81st Street, Carrasquilla, during the early morning hours on Friday, and when they left their homes they discovered that a leak in a water main had turned into a high pressure jet of water which caused damage to the pavement of the street, shooting water into the air, and soaking electrical cables in the area. Following the complaint made by Telemetro Reporta, a repair team from the IDAAN arrived on the scene to attend to the incident. IDAAN had to temporarily shut off the water supply to the area in order to carry out repair work. According to area residents, this damage could have been caused by the clients of the Grill 50, located nearby, who use the side of this dead end street as a parking area. The IDAAN took note of some damage caused by the pipeline rupture to one of the houses on Calle 81 and they will be responsible for the repairs.

   

By Mitzi Johani Carrera for the Panama America - The National Institute of Aqueducts and Sewers (IDAAN) requested technical support for the Panama Canal Authority (ACP) to find the causes of complaints from users about the "bad taste and odor of drinking water" in some sectors in the districts of San Miguelito and Panama City. According to Rodrigo Barragan, head of the water treatment plant in Chilibre, and the National Coordinator of Water Treatment Plants, the turbidity present in Lake Alajuela is normal for the season in December. Barragan said this month the water level rises, unlike the month of May when it decreases. He said the increasing the water level that has contact with leaves, weeds and branches may be causing the water color. However, he noted that since last Friday they have been conducting bacteriological tests in different parts of the capital city in response to reports from citizens and all have come out negative. Barragan ruled out that the discoloration in the water might be causes by a chemical used in the water purification process. He explained that the doses of aluminum sulphate, anionic polymer and cationic polymer, which is applied to the water, are completely odorless and applied at 10 times below the normal dose to avoid affecting people. People living the in the areas of Parque Lefevre, Los Angeles and Bethania all say the water is coming from their taps with a taste and smell of diesel since last week. What's more, in San Antonio, Cerro Viento and San Miguelito people have been reporting that the water has been "yellow" with strong smells for a week. IDAAN explained that due to the low production of water, the tubes fill with air and the pressure causes the water to have a whitish color that disappears within a few seconds.   

TVN Noticias - Colombian Coal will serve as the fuel to generate electricity in Panama once the conversion of the power generation plant Bahía Las Minas located in the province of Colón has been completed, according to the manages of Suez Energy. The Franco-Belgian company Suez Energy, with a 51% stake in the plant, expects the conversion work on the plant which began two years ago to be finished in April 2010. The conversion of this plant, with a cost of nearly $150 million dollars, will allow for the burning of coal in place of the traditional bunker fuel to generate electricity. It is estimated the plant will burn about 1,000 tons of coal per day to produce electricity, with an installed capacity of 120 megawatts. Currently the price of Colombian coal ranges from around $52 per ton, down from $150 per ton in the middle of last year. The Directors of Suez Energy have already developed the contacts to guarantee the supply necessary for the functioning of the power plant.   

By ELIANA MORALES GIL for La Prensa - The construction company Norberto Odebrech maintains its streak of luck with the current administration. Now they have won a new contract worth $11.4 million dollars to channel the Caldera river in Chiriqui. As was the case with the contract to extend the coastal strip, this contract was let directly (without a public bidding process.) The Ministry of Public Works decided to give the job to the Brazilian company on 5 October 2009, and the decision is supported by a resolution from the Executive Cabinet issued in August when it was determined that a state of emergency exists in the districts of Bugaba and Boquete in Chiriqui, because of the devastation caused by floods. The new contract in in addition to another contract awarded to extend the coastal strip worth $52 million dollars. In the past administration the Brazilian company won several lucrative contracts to include the construction of the coastal strip, the construction of the highway from Panama to Colon, the Remigio Rojas irrigation system, and the construction of an eight kilometer long tunnel that is part of the program to clean up the Bay of Panama. All told, the total value of these contracts was $729 million dollars.   

FOCUS News Agency - Panama City. The Panamanian government is planning to build a bridge or a tunnel across the Panama Canal near the Atlantic coast, the Panama Canal Authority (ACP) said on Wednesday, Xinhua informed. The authorities will invite bidders for a contract in January. The winning company must analyze and present the feasibility of building a bridge over the Canal or a tunnel across the Canal. Both alternatives will be studied independently, the ACP said. "It is estimated that the presentation of the studies will last seven months," and a committee formed by engineers will be in charge of evaluating the proposals, and it is possible to hire external advisors to guarantee efficiency, the ACP said. Panama began to modernize the Canal in 2007 and is scheduled to finish the work in 2014 at the latest, to celebrate the 100th anniversary of the Canal. The project will cost about USD 5.25 billion. (Editor's Comment: Long range strategic plans have always called for a highway to connect Bocas del Toro with Colon along the Atlantic coast. This would open up vast tracks of land that are now practically inaccessible to development. This is good news, especially for those who picked up cheap ROP along Colon's "lower coast." Expect to see a lot more about the development of the Atlantic side of Panama in the coming years, much more as a matter of fact. The really smart money gets in right now.)   

By Eric Sabo - Nov. 13 (Bloomberg) -- Panama may sell as much as $500 million of bonds to finance construction of a subway and other infrastructure projects, Finance Minister Alberto Vallarino said. “We have enough money for the budget now,” Vallarino said in an interview today in Panama City. “But if the timing is right, we will take advantage of it.” Panama is preparing to return to overseas credit markets after Standard & Poor’s boosted the outlook on its BB+ credit rating to positive on Nov. 9, putting the Central American country on the cusp of investment grade. The ratings company said faster economic growth, boosted by the $5.25 billion expansion of the Panama Canal, and tax increases are helping keep the budget deficit in check. Panama last sold bonds in international markets in March, when it issued $323 million in a reopening of 7.25 percent securities due in 2015. Latin American governments and companies are selling debt abroad as the global economic recovery fuels demand for the securities. Panama is rated Ba1 by Moody’s Investors Service and BB+ by Standard & Poor’s. Both ratings are one level below investment grade. Vallarino said that he expects Panama to win an investment grade rating next year after President Ricardo Martinelli, in power since July, pushes through additional tax reforms to offset budget deficits. Economic Outlook - The economy will probably expand 3 percent in 2009, before reaching as high as 5 percent growth in 2010, Vallarino said. Credit-default swaps, contracts investors use to protect against non-payment, show Panama trading as investment grade. The cost of protecting Panama’s debt against default for five years is 1.37 percentage points, according to data compiled by CMA Datavision. By comparison, it costs 1.41 points to protect securities issued by South Africa and 1.49 points to protect bonds sold by Greece, countries that S&P rates at least three levels above Panama. A basis point equals $1,000 on a swap protecting $10 million of debt against default. Credit-default swaps, conceived to protect bondholders against default, pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to its debt agreements. Panama filed a form with the U.S. Securities and Exchange Commission yesterday saying it may sell up to $2.5 billion of bonds and warrants overseas.   

By Zelideth Cortez for La Critica - Construction on the new metro system will begin in July 2010. The Executive Secretary of the Secretariat of the metro, Robert Roy, announced that next month they will ask companies who are interested in participating in the construction project to submit their "expression of interest" statements. Apparently everything is going full speed ahead because yesterday afternoon there were 410 envelopes presented, as well as another 600 proposals for the design of the new metro's logo. The proposals will be evaluated by an Evaluation Commission consisting of Ignacio Mallol, Astrid Salazar, Mariana Núñez, Orosman De la Guardia and Stephan Proaño. The president of this group, Ignacio Mallol, noted that the "visual aspects will be taken into account, based on aesthetics, creativity and originality of each presentation. On December 20 the winning logo will be displayed.   

Panama America - The problem with the water supply in the capital city has already been resolved according to the National Institute of Aqueducts and Sewers (Idaan). The Public Relations office of the institution issued a statement after yesterday, Friday, 75% of the population of the capital and San Miguelito received contaminated water from their taps. The agency said that in order to avoid similar situations in the future they are taking all possible security measures and certified that the water being supplied by the institution is now fit for human consumption. This turbidity occurred when the pipeline between Villa Zaita and Tinajitas was opened to do some work, but sediments had accumulated in that section of the pipeline, causing the contamination.   Click Here To Read The Full Article (1 words)

By YARITZA GRICEL MOJICA for La Prensa - Residents of Panama City, as far out as Pedregal and San Miguelito, yesterday had to depend on bottled water, because the water coming from their taps was brown and full of sediments. Authorities from the National Institute of Aqueducts and Sewers (Idaan) recommended that people not consume the water that was reaching their homes through the aqueduct, because it could cause them stomach pains, vomiting and diarrhea. Manuel González Ruiz, Director of Idaan, explained the problem occurred after work began to install flow controllers (a device that controls the force that moves water) in the existing line, and the parallel line was opened, which was not clean. Ruiz González said "the general contractor COPISA - Constructores Profesionales de Ingeniería S.A. - which is responsible for the work being done on the pipeline, had reported earlier that the new line had been cleaned, disinfected, and was ready to operate", which is why they decided to go ahead with the scheduled repairs.

This situation was what caused 75% of Panama City, as well as Pedregal to the East and the areas around San Miguelito to receive water that was not suitable for drinking. In order to flush the dirty water out of the system, Idaan opened fire hydrants and recommended that people also keep their taps open to flush local lines. Idaan staff have also established checkpoints in various parts of the city to monitor turbidity levels. At noon yesterday, dirt levels were high, and the tests conducted did not reflect residual levels of chlorine, indicated the water was not fit to drink.

For their part, the Department of Epidemiology of the Ministry of Health advised the population to boil water until Idaan announces it is completely clean and safe to drink. Health officials also reported that as of yesterday there had not been any cases reported of people who were made sick after drinking the dirty water.

Caesar Berbey, Idaan legal adviser, said he would do an investigation to determine the level of responsibility for Copisa. However, he announced the penalty for what happened could involve a fine due to the loss of millions of gallons of water. "Copisa has been working with Idaan since 2004, therefore we hope that on Monday we will be able to reach an understanding," he said. The lawyer said that the National Authority of Public Services could also make an inquiry, since that entity is responsible for monitoring water quality in the country.

Meanwhile, the general manager of Copisa, Juan Medrano, said that yesterday were putting a bypass (graft) to install some water flow controllers in the old pipe. That is why they opened the new pipeline, which - and he did not specify why - was full of sediment. He clarified that they were not working directly on the pipeline. Medrano added that yesterday they met with the director of Idaan to determine the actual causes of the problem and to reschedule the work on the line.

   

La Prensa - The Institute of National Aqueducts and Sewers (Idaan) advised the public to avoid drinking tap water. This, after complaints from residents of the district of San Miguelito and the capital city upon seeing sedimentation in the water. The agency also asked people to leave taps open to flush the system, detailed a statement. Work Being Done - Idaan announced that the irregular situation with the water supply was due to the tests being conducted on a new supply line, and the installation of a new flow control valve. Given this situation, IDAAN and the company COPISA opened turbines, hydrants and valves to clean out the pipes quickly. The institution reported that they expect the water color to return to normal this afternoon. Meanwhile IDAAN is expected to give a press conference at 3:30 pm to further explain the murky water in San Miguelito and the capital city.   

La Prensa - For Panamanians, the hope of being able to swim again in the rivers and beaches of Panama City is no longer an impossible dream. The president, Ricardo Martinelli, presented yesterday with his counterpart from Costa Rica, Oscar Arias, the order for companies to proceed with the second phase of the project to clean up the Bay of Panama and Panama City, that during its execution will generate more than 3,000 new jobs directly and as many as 16,000 jobs indirectly. The project, which dates from the previous administration, is today, along with the future construction of the Metro mass transportation system in Panama City and the expansion of the Panama Canal which is already underway, spearheading the modernization of Panama. The project is also a prerequisite for the improvement of environmental health conditions in the metropolitan area. More than one million inhabitants of the city of Panama and San Miguelito will benefit. (Editor's Comment: Phase One was the installation of many miles of pipelines in and around Panama City, which has been completed for the most part. Now they will begin to build the water treatment plants that will receive the runoff before it goes into the ocean.)   

Panama America - This Wednesday the order to proceed was delivered to the Oderbrecht company for the extension of the coastal strip at a cost of $52 million dollars. The project, which will extend the Coastal Strip from the location of the seafood market to the Presidency of the Republic, will also include the construction for a site for the vendors who are currently located in the area known as the Terraplén. The second phase of the coastal strip also includes the construction of a single pier that would allow for better working conditions for the people who use the existing facilities on a daily basis.    

By Zelideth Cortez for La Critica - The Swiss-Mexican-Panamanian consortium "POYRY y Cal y Mayor y GeoConsult" won the bid to advise the Government of Panama in the design and construction of the new metro subway system in Panama City. The Inter-American Development Bank, Andean Development Corporation and the Secretariat of the metro evaluated four proposals. The Executive Secretary of the Metro, Robert Roy, said the winning consortium submitted the best technical proposal for a budget of B / 2 million for the consulting contract. In nine months it is hoped the conceptual design of the metro system will be ready, as well as the preparation of documents that will be used to call for bids for the construction of the system. The representative of the Inter American Development Bank, Marcelo Antinori, said that after 2 weeks of evaluation, about 48 companies submitted expressions of interest and in the end only four groups remained in the running; JG Cajiao and Assoc-Mintra, SENER Ingeniería y Sistemas SA--TMB, and the winners COTEBA PÖYRY and Cal y Mayor and Geoconsult. Already three possible routes have been chosen for the construction of the first section of the new metro system.The budget for the Secretariat of the metro for next year will be used in three major areas: to clear the routes, to pay compensation for any lands that might have to be acquired, and consulting. Robert Roy said that regardless if the metro system is underground or elevated, this first phase will have about 13 or 14 stations, so it is expected the government will have to launch a process of negotiations with the owners of property near the construction of the project.