Canal project presented to U.N.
After attending the summit of non-aligned nations in Cuba last week, Panama’s President Martin Torrijos travelled to New York to present the proposed project of the enlargement of the Canal to the General Assembly of United Nations.

The referendum at which the Panamanian people will say "yes" or "no" to the project will be held on Oct. 22. It is interesting to note that a referendum was called 29 years ago –on October 23, 1977 –by dictator General Omar Torrijos Herrera, father of the current president, to legitmize the negotiation of the Torrijos Carter treaties which handed control of the canal to Panama.

A public opinion survey by PSM Sigma Dos Panama revealed that 66% of Panamanians would vote "Yes" in the referendum on the enlargement of the Panama Canal, the sample size was of 2,430 people over the age of 18.

A war ship transits the Panama Canal. Panamanians will decide to expand the famous waterway via a referendum on Sunday, October 22.

The National Federation of Chambers of Commerce, Industries and Agriculture of Panama (FEDECAMARAS) considers "necessary and incapable of being put off" the modernization and enlargement of the Canal. The federation demanded the drawing up of a National Plan of Integral Development, endorsed by Law, that guarantees the best possible distribution of the resources contributed by the Canal to public finances.

A new national development plan for Panama and its monitoring system proposed by the United Nations should be ready by mid-2007. The plan is the result of repeated petitions of political parties and civil society organizations to take advantage of the canal expansion project to achieve greater equity.

Torrijos rating high
After two years of government, the administration of president Martin Torrijos registers a level of acceptance of 67.2%, according to the results of the latest survey of Ditcher & Neira of 1,200 people recently.

Teachers’ strike ends
After a five-week teachers' strike, schools went back on Monday. The teachers finally accepted the $90 pay raise that from the beginning the government had offered them. The only concession they won was to speed up payment. Instead of $50 next year and $20 in 2008 and 2009 they will now get $35 in 2006 and 2007 and $10 in 2008 and 2009.

For the time lost during the strike, the school year, which normally ends Dec. 22, will extend into January 2007. Many striking teachers had their pay docked for absence but it will be replaced if they work Saturdays this month and next.

Apart from the wage increase, the teachers won other concessions including: special facilities for teachers in areas of difficult access, increased insurance coverage and the creation of an Office of Occupational Health for teachers.

Gap to stay closed
The subject of opening the Darien Gap in not on the agenda of the government at this moment the Foreign Minister and Vice-president Samuel Lewis Navarro told Colombian officials, among them president Alvaro Uribe, who in recent days has insisted on raising this subject with the Panamanian government.

Foreign Companies Coming
In the first semester of this year 94 foreign companies have come to Panama, an increase over the same period of 2005, when 85 were recorded. This situation is due, in part, to the construction of various mega projects, among them, the proposed enlargement of the Panama Canal. Universal Fidelity LP is one company. Tim Hernandez, a company spokesman said they invested in the country because of its bi-linguality and the Spanish language also permits them to attend to growing numbers of Latin Americans in the United States. The arrival of Universal Fidelity LP will generate some 250 jobs.

Crime scene
Panamanians are mostly in favor of an increase of penalties for minors, as show by the latest survey carried out for La Prensa daily newspaper by the public opinion consulting firm Dichter & Neira, that showed 94% of the 1,200 people polled said the penalties should be hardened for adolescents who violate the laws, while barely 4.4% said no.

There is another side to the government’s approach to crime. As well as investing in new patrol cars or arms, or reinforcing police presence the government is betting on prevention to fight delinquency. President Martin Torrijos set in motion the Program of Integral Security – the second of his administration and the third since 2004 – that depends on sports, cultural and academic activities to reduce criminality among youth, as well as the reintegration into society of minors who have already fallen into delinquency.

Cristobal port growth
To modernize of the Port of Cristobal, Panama Ports Company (PPC) received seven patio cranes with the capacity to stow 6+1 containers high. These new cranes will permit the Port of Cristobal to offer two docks with six container cranes and thus attend simultaneously to two Panama container ships.

Oil refinery
"The subject of an oil refinery for Puerto Armuelles, Chiríqui province, is a priority and is advancing positively" says Minister of Commerce and Industries, Alejandro Ferrer. He indicated that the ministry has been visited by more than 40 international companies to explain the advantage of installing a refinery in Puerto Armuelles. He said that more time is needed to approve proposals for the US 7,000 million project.

El Valle market
Plans are to go ahead to improve the installations of the market at El Valle de Anton, a traditional tourist attraction.

Canal helps small towns
President Martin Torrijos announced an extraordinary credit of US $50-million for social investment in different small towns of the country. This forms part of the contribution from the Panama Canal Autority (ACP) to the State.

Drug scene
Panama continues to be used by the international drug cartels. Last week the security agencies confiscated 1,800 kilograms of drugs in four simultaneous operations in Chame, Colon, Veraguas and Darien. Eight people were arrested, including Panamanians and Colombians. This operation forms part of a series of seizure of more than two tons of drug over past weeks, including cocaine, heroin and crack in four provinces of the country.

Mass transit system
Seven companies classified out of the nine that participated in the pre-qualification for modernization of the mass transit system in Panama, it was reported by Leovigildo Herrera, deputy director of the Transit and Land Transport Authority (ATTT). He said that a team of consultants is also being hired to draw up the requirements jointly with the ATTT and the leading bus operators

Healthy banking
The Panamanian banking system has a low level of bad payment and the mortgage accounts receivable are extremely healthy in comparison with other countries, emphasized Juan Barragan, vice-president of credit of Continental bank. The banker commented that this "good health" is due to the system of direct discount in the Panamanian financial system, which eliminates what is called fictitious slowness and payments are more disciplined.

Plastic on the beaches
More than 129,000 pounds of solid waste were collected last year in the rivers and on the beaches of Panama. This trash prejudices the survival of the tortoises and sea birds that frequent the beaches.

Conservationists attribute the death of some animals to the consuming of plastics.

Rescue the courts
One of the main powers of the State – the Supreme Court has initiated a program to "rescue" its structure, which according to the criteria of its own representative, judge Graciela Dixon, is close to paralysis.

She has requested a budget of US$ 101,062,663 for 2007 – US $54 million more than in 2006 – which she claimed is sufficient to begin the rescue of the law courts.

Retiree loans
More than 50% of the US $308-millions that have been lent by financial organizations in Panama this year are loans to retirees. This is a market of interest to the finance groups because it is less risky, and if the retiree dies, they have life insurance that covers the total of the debt.

The North Corridor, looking northeast. El Corredor Norte, mirando hacia el noreste.

The government has ordered PYCSA, the company which operates the North Corridor, to resume work in January 2007 on the 14.5 Km extension of the road from Tinajitas to Tocumen to join up with the South Corridor.

This phase of the North Corridor was started six years ago but, PYCSA (Proyectos y Construcciones, S.A.) a Mexican company which won the concession to build the toll road became mined in legal and financial problems and work stopped.

It appears also that the right of way was not secured, but now the Ministry of Public Works has given assurances that 44 structures have been demolished along the way and 88 families have been compensated.

One problem which stopped work originally was a landslide at an access bridge which resulted in the death of four children.

PYCSA does not seem to have responded to the government's order. Lines of credit of $57 million which it originally had with state banks towards an estimated cost of $152 million for the project were cancelled.

The Visitor contacted the company for more details but nobody was available for comment.

Know what type of Real Estate you are buying

By: Steven Rich, MBA
Marketing Manager for Panama Offshore Legal Services

There is a lot of confusion when foreigners look to buy real estate in Panama. That’s because some sellers have actual "title" and others only sell their rights to "possess" a property. Moreover, deeds of title are different in Panama from the United States or Canada.

Let’s clear up this confusion. Panama recognizes three different types of real properties: Titled, Rights of Possession, and Concessions.

1. TITLED PROPERTY
Titled property is similar to "fee-simple" title in the United States and is the most secure form of real property ownership in Panama. The Constitution of the Republic of Panama guarantees the right to own private property. Titled properties measured and properly recorded in Panama’s Public Registry office verify one’s real property "title". These verifiable, guaranteed rights allow banks to issue mortgage loans for titled properties by registering liens against one’s title as collateral.

Purchasing titled property is simple by following these procedures:

1. Negotiation: If you are dealing through a real estate agent, make sure all of the terms and conditions are clear and in writing. Make sure that the written contract clearly sets forth the payment amounts and dates. If you are dealing directly with the seller, all terms should be clearly understood before hiring an attorney to prepare the written contract.
2. Promise to Purchase Contract: Instead of a Purchase & Sale Agreement (common in the United States), the buyer and seller initially sign a Promise to Purchase (the property) Contract. A small down payment when signing a written Promise to Purchase Contract secures the property while the buyer conducts a title search to verify the seller’s ownership. In the meantime, the purchaser arranges for financing (if not paying fully in cash) and setting up a corporation (if applicable) to hold title. Register this contract at the Public Registry to prevent the seller from selling the property to another party prior to the Closing.
3. Title Search: Once you sign the Promise to Purchase Contract, you should hire a competent attorney to conduct an investigation of the seller’s title at the Public Registry. The lawyer will also verify that the property is free and clear of any encumbrances, liens, and other issues affecting transfer of title. Title Search also includes reviewing the catastral survey map. In many cases, a professional surveyor will verify the map points on the property to avoid future boundary conflicts. Finally, have your lawyer verify the main utility debts (water & sewer) with the government agency providing them (IDAAN).
4. Buy-Sell Contract: Upon conclusion of the Title Search, the parties sign a formal Buy-Sell Contract (also known as Public Deed of Title Transfer).
   The escrow agent pays the seller’s final balance and transfers title into the buyer’s name. I highly recommend using an established Escrow company to protect both parties.
5. Title Transfer: This process is known as the "Closing" in the United States. Property ownership officially transfers to the buyer when both parties sign the Buy-Sell Contract (Public Deed of Title Transfer) and registers it with the Public Registry. If title is in a corporation’s name and the buyer chooses to, the seller merely transfers the corporation’s shares to the buyer without transferring title. In order to facilitate the Closing by assuring the seller will be paid and the buyer will receive full Title; the attorney prepares a "Promise To Pay Letter" from a local bank. This letter guarantees full payment to the seller when the Title Transfer registers at the Public Registry.

Problem Solved: The "Promise To Pay Letter" solves a typical Closing problem. Sellers usually require full payment when they sign the Public Deed of Transfer prior to the actual registration of Title Transfer at the Public Registry. There have been instances when the seller received full payment, but the Deed was not registered (or the government rejected the deed). The buyer did not become the new owner because there was no record of the title transfer in the Public Registry. The "Promise To Pay Letter" guarantees payment to the seller by a local bank while assuring the buyer that payment is not made until actual transfer of title.

2. RIGHTS OF POSSESSION
This is similar to "squatter’s rights". This is where government owned property is "occupied" by a Panamanian (or entity) over time. Possession rights granted to the squatter through a simple certification document issued by either municipal mayors, sheriffs, or other government agencies such as the Agricultural Reform Department (Reforma Agraria). There are no property taxes because the possessor does not own the property. However, any structures built on the property may incur municipal and/or national taxes if they are registered. Possession rights become titled by purchasing the property from the government. However, certain coastal areas, national parks, or islands are "protected properties" where the possessor can apply for an administrative "Concession" over the land guaranteeing use of it.

To acquire possession rights over a property, it is important to follow these steps:

1. Promise to Purchase Contract: Pay a small down payment at the signing of the Promise to Purchase Rights of Possession Contract securing the property and providing enough time for the due diligence. During this time, the buyer coordinates payment arrangements for the closing. Contracts for the purchase of Rights of Possession cannot be registered at the Public Registry; therefore, a public notary should authenticate them.
2. Due Diligence: Unlike titled property that is easily verifiable through the Public Registry, the due diligence procedures on Possession Rights property is more complex. Panama has no central database of Possession Rights properties. Therefore, buyers of Possession Rights should take extra precaution during the due diligence process. Generally, the extent of the due diligence investigation that one can realize on Possession Rights property is the following:

   1. Verification of Certifica-tion of Rights of Possession: The Certification of Possession Rights validly issued from a competent government authority containing the possessors’ name and correct description of the property in terms of location, size (area), limits, boundaries, and neighbors on all sides.
   2. Verification of Survey: A survey stamped and signed by a professional, licensed, surveyor engineer. This identifies the possessors’ name, location and reflects the same information in accordance with the Certification of Possession Rights.
   3. Inspection: The main elements to verify are: physical occupation, no opposition by third persons, and good faith. Your surveyor identifies and marks the points of the property confirming these points with the neighbors to ensure that there are no future boundary conflicts. This requires a physical inspection. In addition, the property should be marked and fenced, delineating the boundaries.
   4. Permit Verification: In some cases, if the buyers’ intentions are to build a certain type of structure or project on the Possession Rights property (for example, a marina, port, hotel, airstrip, etc.), it is necessary to verify if there are any national or municipal regulations prohibiting those activities in the area.
3. Buy-Sell Contract: After verification, the seller expects the final balance at the signing of the Buy-Sell Contract. If you use an escrow agent, payment of the final balance is made once the Possession Rights Certification transfers to the buyers’ name. Contracts for the purchase of Rights of Possession cannot be registered at the Public Registry; therefore, a public notary should authenticate them.
4. Possession Rights Certification Transfer: The possession rights over the property officially transfers to the buyer in the Possession Rights Certification. This occurs immediately after each party signs the Buy-Sell Contract. If the possession rights are in a corporations’ name, the buyer agrees to purchase the corporations’ shares. Then there is no transfer of Possession Rights Certification, only a transfer of the corporation shares to the buyer.

3. CONCESSION PROPERTY
Concession property is similar to a land lease arrangement, common in Mexico or Hawaii. This is where the government grants a Concession to an individual or an entity for a specific purpose, such as a real estate development, hotel, or marina. Most Concessions in Panama are granted for a maximum of 20-year (renewable) periods.

Can you believe these two places are less than an hour apart from each other?

The Flower of the Holy Spirit, Panama’s Natural Flower, blooms from July to September.

The Flower of the Holy Spirit, the rare flower adopted by Panama as its national flower, is blooming in full splendor at present and can best be seen at El Níspero plant nursery and zoo in El Valle de Antón.

This exotic orchid, (Peristeria Elata) which gets its name from a group of petals that form what looks like the image of a white dove in its center, is usually found deep in the forests and highlands of Panama and blooms between July and September. The plant grows all the way from Mexico to South America, yet, interestingly, many Panamanians have only seen it in pictures.

El Nispero, which is one of the most popular attractions in El Valle de Antón, is a rather unusual location. Although many think of it as a municipal park, it is actually a private property, crea-ted by the Caballero family over 28 years ago. Its original purpose was to offer visitors specimens of the rich flora of the area (The site of a pre-historic volcano, El Valle’s soil is very rich in nutrients). However, friends of the family soon started to present them with exotic gifts: animals from far-away places. The hacienda soon became the home of colorful phaisans from China, peacocks, owls, storks and herons, serpents, crocodiles, and felines. The park is also home to the famous golden frog, which is endemic to El Valle and surrounding mountains.

With its spectacular natural and landscaped scenes, El Níspero is excellent for picnics and family outings. It opens from 7:00 a.m. to 5:00 p.m. admittance is $2.00 for adults and $1.00 for children.

Located in the province of Coclé El Valle is a two-hours drive from Panama City. To get there, visitors need to get on the Pan-American Highway and travel west to the beach community of San Carlos. The entrance to the mountain road leading to El Valle is 4 km past San Carlos.

Rodolfo Macías:

Macias’ rendition of the main square of a town in the interior provinces.

Panama’s best artists are not only found at the capital’s high-end art galleries. They are also found in many less obvious parts of the Republic, such as the small town of Aguadulce, in Coclé, the home town of Professor Rodolfo Macías Valderrama.

A member of the staff of the National Institute of Culture’s (INAC) School of Fine Arts in Aguadulce, Macías was trained in Colombia and Venezuela, where he studied everything from Italian engraving techniques and serigraphy to painting and events organization.

One of Macías’ murals in downtown Aguadulce.

Macías is, above all things, a muralist who cannot stand to see empty spaces. One day, he requested permission from the mayor of Aguadulce to paint murals on a number of old walls throughout town. With the aid of local businessmen, he transformed decrepit settings into colorful portraits depicting scenes of this picturesque agricultural region.

Prominent local personalities, such as former Panamanian president Rodolfo Chiari and poet Stella Sierra, as well as the late John Paul II have been gracefully depicted in Macias’ unique, country style.

One of Macias’ portraits can also be found at the Presidential Palace in Panama City.

Macías was educated in Colombia and Venezuela.

Mr. Macías at work.