Isthmian Update

Some of the news in Panama

Poisoning fall out
A civil suit for US$400-million has been launched against Rafter Laboratories, linked to the delivery of glycerin based medicines. Valetín Jaén, a lawyer for the owners of Medicom, S.A., the local importer, indicated that the demand is based on the damage caused to the business as well as the scores of Panamanians who lost their lives after consuming the contaminated medicines.

Death sentence for Drug Chief
Zhen Xiaoyu, former director of the State Administration of Food and Medicines in China, was condemned to death for corruption and negligence, said a news report from the official Chinese news agency, Xinhua. The decision of the court comes in the middle of a scandal over Chinese medicines exported to Panama and causing the deaths of 101 people from poisoning with dietilenennglycol, In a case not directly related with Zhen, the Chinese authorities have announced the future establishment of a harmful food products identification system for human health protection after the dietilenennglycol scandals.

Canal extension most important
The enlargement of the Panama Canal was chosen by the specialized magazine TEN, a new publication of Business News Americas, as the most important infrastructure project of the next decade in Latin America, followed by important works in Mexico, Central and South America.

Illegals detained in Panamá
A total of 291 foreigners have been detected so far this year without the necessary permits to work in Panamá. The great majority, are Colombians, Japanese and Brazilians.

Painter apologizes for involvement
The Panamanian painter, Pacifico Castrellón asked “pardon from the Peruvians" for having collaborated with the Revolutionary Movement Túpac Amaru (MRTA), a political move that led him to spend eleven and a half years in a prison in Lima. He wants "to be tranquil and have some time for reflection".

Panama approves of World Bank leader
Panama considers the nomination of Robert Zoellick as president of the World Bank a positive move. In his position as US Commercial Representative during the negotiations of the Commercial Promotion Agreement with Panama, Zoellick always maintained an attitude of respect for our country, said the Minister of Commerce and Industries, Alejandro Ferrer.

Compensation for poisoning victims
The State has begun disbursing more than US$6-million in compensations to the relatives of the victims of the Sharp Kidney Failure Syndrome (SIRA) that was caused by the use of medicines of the Social Security Fund that contained dietilenenglycol.

Coffee sale price a record
Panamanian coffees continue to beat world records. A lot of "geisha" coffee from La Esmeralda plantation was sold at US$130 a pound in an electronic auction, Best of Panama 2007.

Communications in danger
Cable & Wireless Panama (CWP) has warned the State that the earth fill being done by Group F in Amador has endangered an underwater cable "of great importance" for telecomunications between the US and South America.

Development threatens Panama ecosystem
Putting development ahead of the ecosystem means a future disaster for Panama according to Stanley Heckadom of the Smithsonian Tropical Research Institute. He said that 200,000 hectares out of 500,000 hectares of mangrove swamps have been destroyed.

Inter-American Highway Expansion
The expansion to four lanes of the 22 kilometers of the Inter-American Highway between Arraiján and La Chorrera is 65 percent complete. The project is costing the government US$65-million and is expected to be finished by the beginning of 2008.

Electricity prices stable for most
The electricity rate that will be in force from July 1 until December 31, 2007 will not increase for 95.2 percent of clients, says the National Authority of Public Utilities (Asep). The clients of Edechi will receive an average reduction of 6.4 percent, while those of Edemet will not see any variation of the present rate. A state subsidy of US$15-million will help avoid an increase.

Regulating gas prices not liked
Regulating the petroleum market in Panama does not seem to be a viable alternative for petroleum companies. For Juan Vasquez, general manager of Shell Central America, the regulation of prices is a mechanism that tends to limit the growth of the activity.

"No gold crown for health minister”
The former director of the Social Security Fund (CSS), Rolando Villalaz says the Minister of Health, Camilo Alleyne, should be cited by the Attorney General’s Office during investigations into the massive poisoning of citizens from contaminated medicines, since "he cannot have a crown of gold or friendship with the president to evade responsibility".

Price increase proposal to milk producers
An increase of US$0.03 a liter of milk, plus US$0.03 as an incentive are some of the most recent proposals of Estrella Azul to the Chiriqui producers who supply their processing plants.

Bus operators want higher fares
The bus operators’ leadership proposed to the National Assembly a norm that permits them to set new fares according to variations in fuel prices. The president of the Transport Chamber (CANATRA) Luis Rodríguez proposed the establishment of a preferential norm equal or similar to that established by other sectors, not greater than 9 percent for loans to finance the purchase of vehices.

Real estate expropriation
The expropriation of real estate located in the Casco Viejo (Old City) beloging to one of the members of the Real Estate Owner’s Association of Panama (API), was catalogued as a "violation of the right of possesing private property, a breach of the legal processes, legal insecurity and a negative message to those who are projecting local development.

Museum builders selling land for homes
The Amador Foundation that is building the Museum of Biodiversity, announced yesterday the process of tender to sell two plots of land of 7.7 hectares in Amador. Miriam Morales, the organizer of the project, said that the tender is programmed for September 14. "On these lands residential homes will be built and they will be covered by all the urban specifications laid down for this zone", she said.

Malnutrition costs Panama
Panama occupies third place among the countries of Central America and the Dominican Republic, with the smallest percentage of undernourished people. In spite of this, malnutrition programs have cost the country US$322-million.

Protection of coral and fishing
From now, on every tourist project involving extraction of coral and fishing in the Las Perlas Archipielago on the Pacific will be governed by a new law, naming the area as a special preserve of the marine-coastal management.

Free trade agreement
Negotiations on the free trade agreement with the United States are not yet crystallized, according to the Vice-minister of Foreign Trade, Carmen Gisela Vergara.

Media protests TV closing
The Panamanian mass media has united in sending a clear message rejecting the refusal of the Venezuelan president Hugo Chavez, to renew the licence of closed Radio Caracas Television (RCTV).

Court freezes properties
The Panama Maritime Court las has ordered the freezing of properties belonging to Petroterminal de Panamá (PTP) and other companies and owners of the ship that was working in the port of Chiriqui Grande, Bocas del Toro, on February 4 when an oil spill occurred. The freezing - of US$537-million, includes costs and expenses of the judgment.

Return of trams
The company Soluciona S.A. has won the public tender for the consultancy on accessibility, public transportation and rehabilitation of the tramway system in the Casco Viejo (Old Section) of Panama City. The transport system operated until 1902, when it was suspended and dismantled.

Action on traffic jams
With an investment of US$70-million, the Ministry of Public Works (MOP) has placed in motion the construction of nine traffic bridges, to reduce traffic jams in the city.

Medicine Recall
The Ministry of Health (MINSA) has ordered withdrawal of the medicine Viracept, also known as Nelfinavir, after lots of this product were discovered to be contaminated with a toxic substance that represents an imminent danger for patients with HIV-AIDS. "All the containers of Viracept at present available in the market, including those that the patients may have in their homes should be returned to the pharmacies", indicated the communiqué.

Visa confusion
The Minister of Tourism, Ruben Blades, denied that the time allowed tourists to stay in the country has been reduced to 30 days, and that Panama requires vaccinations to allow entry to the country. He warned that "unscrupulous people" are circulating rumors through the Internet to damage the country.

Reforms questioned
The spokesman of the Movement of Users, David Ramírez has rejected insinuations by taxi and bus group leaders that the laws of public transportation do not require reform.

Old Union Club to be five-star hotel

The building, abandoned for many years, is a landmark in San Felipe.

By Karla Jiménez Comrie

The building that used to house the old Union Club, and later on the Club de Clases y Tropas, will soon be transformed into a five star hotel. The structure is located in Calle 1ra San Felipe, in the heart of the Casco Viejo.

The land was previously owned by the Decameron Group and they were the first to propose the construction of a hotel complex on this site. In 2006 it was sold to the American entrepreneur, Paul Stallings, proprietor of the Hotel on Rivington, in Manhattan.

It is estimated that the construction of the complex, the first of three hotels that are expected to be built in the area, will start early in 2008.

The Executive Director of the Oficina del Casco Antiguo (OCA), Ariel Espino said that one of the basic requirements is the restoration of the original facade to its former glory. Although little is known about its interior design, it is expected that the hotel will have 140 rooms.

Espino explained that because the land of the property is fairly big, the owner will have the opportunity to add an annex, but he would have to respect the historical setting of the area. "We don´t want a replica of an old monument, but we need to avoid eccentric modern buildings. The idea is to find a middle point between the ages".

Facade of the soon-to-be luxury hotel.

For the O.C.A., to have a five star hotel within the Casco Viejo is a great opportunity to give impetus to tourism in the capital. It would be convenient for the traveler, who wants to spend a longer period of time exploring the historical sites without the time restrictions imposed by tour operators.

A little bit of History.
The Union Club opened its doors in 1917 for Panamanian high society. Its design was the brainchild of the American architect, James Lloyd Wright, who also worked on the blueprints of the celebrated Santo Tomás Hospital.

At the end of the 60s, the power brokers moved to Paitilla and the building became the recreation center of the Guardia Nacional.

After the U.S. Invasion of Panama, the site was abandoned. In 2001, a few groups of artists used its ruins as a background for social events and festivals.

COPA unveils dramatic $300m expansion plan

COPA is to invest around 300 million dollars in 2007 as part of its expansion plans. The president of the airline, Pedro Heilbron said that the objective of this exercise is to transform Panama into the "center of interconnections for the Americas"

The investment plans include: buying airplanes, opening new routes and technological development. Heilbron explains that COPA's strategy is the logical response to the economic boom that the Isthmus is experiencing which, together with the widening of the Panama Canal, is expected to attract a larger number of visitors every year.

Over the next few months, COPA will open four new destinations within the region with direct flights from Panama to Washington, Cordoba in Argentina, Punta Cana in the Dominican Republic, and Guadalajara in Mexico.

With these new routes the Panamanian airline will operate more than 126 flights daily.

Heilbron added, that his company will also increase the weekly flights to cities like San Jose in Costa Rica, Guatemala, San Salvador, Lima and Miami.

The Minister of Commerce and Industries, Alejandro Ferrer said that thanks to COPA, Panama is becoming a major platform for air transportation.

The Panamanian airline has flights to 40 different destinations, in 21 countries and in 2006 carried around 3.34 million of passengers.

Historical building-New Hotel

20 millions will be invested in the Hotel Central.

The hotel where Count Fernando de Lesseps and the French builders lodged, while planning the construction of the Panama Canal, will be rebuilt and restored by the Spanish group, AB Hotels of Barcelona.

The Hotel Central had its golden age when the French Universal Canal Company used the building to lodge its engineers when they started the canal´s construction between 1880 and 1889. Lesseps failed to complete the project and the United States negotiated the rights in 1904 and finished it. The Panama Canal took 10 years to build, and was opened in 1914.

The head of the new project, Valentín Monforte, said the old Hotel Central complex, located in the historical neighborhood of San Felipe, in Casco Viejo, will become an opulent establishment with 140 rooms, and social areas, a convention center and spa.

The renovation works will cost around 20 million dollars and will start in two months. It is expected the project will be finished in two years.

Giant container ship docking in Balboa

Post panamax vessels are those that are over the maximum dimensions allowed in the Panama Canal.

A gigantic “post panamax” ship from the shipping line Selecta Maersk will dock in Panama on June 15 in the Balboa Port. Post Panamax vessels are those that are over the maximum dimensions that are allowed in the Panama Canal.

In preparation for the event, the Panama Canal Authority (ACP), Maersk and Panama Ports, sent a team to the Lazaro Port in Mexico to observe the maneuvers of the ship, so they can feed that information into the simulator when they arrive in the country.

The captain of the ACP, Rogelio Altafulla said that the vessel, which will come as part of regular operations of loading and unloading, could have a capacity of 7,000 TEUS (Twenty Foot Containers) and will stay in the port for more than 12 hours.

Continental ups flights to Houston

Continental Airlines has increased the frequency of flights from Houston, Texas to Panama from 28 to 40.

The additional flight from Panama to Houston will depart six times a week instead of four.

Passengers will have the option of taking a flight that leaves Tocumen bound for Houston at 1:59 p.m or take the early flight at 9:35 a.m.. This route is available everyday, except Wednesday.