Isthmian Update

Some of the news in Panama

Economy spiralling, inflation rising
The Panamanian economy grew by 9.4 percent in the first quarter of 2007, and economists predict a growth of over 10% for the year. The Minister of Economy and Finances recalled that Panama “reached an index of economic growth of 8.1 percent last year, the highest for the past 15 years, and considered as one of the highest in the world”.

Non-traditional exports showed an increase of 21% in 2006-2007, which represented profits to the order of US$98-million, in comparison with the previous equivalent period of US$77-million, according to the report of the Non Traditional Agro Exporters Group of Panama (Gantrap).

Meanwhile, high food prices are increasing inflation that historically was only 1%. Now, inflation for this year is forecast at 3%, which signifies that prices will continue to climb. According to the INDESA Group, next year it will reach 3.2% and 3.5% for 2009.

Coffee from Veraguas
A cooperative of small farmers of the province of Veraguas, in the central area of Panama, recently exported 165 quintals of organic highland coffee to Germany. The party responsible for the export of the grain, Juan Franklin Hernández, indicated in a communiqué that the lot “was of an excellent fragrance and flavor”. It was produced and processed by the Cooperativa la Esperanza de los Campesinos R.L. of Santa Fe, a district located to the north of Veraguas, some 300 kilometers northwest of Panama City.

Looking for oil
A contract for exploration was signed for the exploitation of hydrocarbons in the Gulf of San Miguel. The agreement was signed by the Minister of Commerce and Industries, Alejandro Ferrer and Stephen Voss for Harken de Panama Limited, a subsidiary of the Global Energy Development Group PLC.

Clayton Land Sale
The National Assembly is selling at auction on Monday July 16, 15 hectareas of land at Clayton. The base is set at US$13,139,213.

Minimum wage
The government announced a salary increase for 22,000 officials who receive salaries lower than US$300 a month. The increase represents an additional annual disbursement of US$16-million. With the increase, the minimum wage of public servants will be superior to that paid in the private sector.

Bringing the private sector minimum wage up to the $300 a month approved for government workers would result negatively on small and medium business, say the guilds that represent the private sector, where 93% of the labor force of the country exists.

The big ships come
It was reported by “The Bulletin”, Panama’s shipping newspaper, that the second Post Panamax Maersk Line ship, the Maersk Sentosa, arrived at the Port of Balboa, as one of the six ships that will be arriving each week and connecting with the ports of Yantian, Hong Kong, Gwangyang, Lazaro Cardenas, and the Port of Balboa. The Port of Balboa is the first port in Panama to receive a Post Panamax ship weekly, providing a new direct connection for Panama, the Colon Free Zone and Latin America with the main markets of Asia.

Cleaning the bay
For a total of US$160-million, the governments of Japan and Panama signed an agreement for the financing of the second section of the first phase of the project to clean up the Bay of Panama. The project will improve the sanitary conditions in low-income areas as well as decrease the contamination in urban rivers.

30 day visa criticized
Stipulating tourist visas for 30 days will bring serious problems to the Department of Immigration said the president of the Democratic Change Party, Ricardo Martinelli, who considers that with this measure, buyers from the US and Europe are being held away. “They want to watch citizens of some countries of South America and because of this they have imposed visas for 30 days instead of 90 and this has affected American and European residential tourists who come to invest in Panama” he said.

Protest against Colombia
Panama will present a demand to the World Trade Organization against Colombia over the new restrictions that the government of president Alvaro Uribe has applied to footwear, clothing and textiles originating in the Colon Zone.

Election preparations
Preparations for the presidential elections of 2009 have begun. According to the Electoral Tribuna, the electoral register should number 2,294,500 voters. The National Assembly has approved the acquisition of a new system of electronic voting. It will be the German brand, Sennheiser, acquired through the musical distributing company, Alfaro.

Green port
The signing of a convention for the conservation of the ecosystem in the area to be developed for the expansion of Colon Container Terminal in Coco Solo, took place between that company and the Smithsonian Tropical Research Institute. The agreement establishes an area that will be utilized as a landscape road for the passing of tidal water from the container patio into the Bay of Manzanillo so as not to affect the ecosystem and also to carry out a land sedimentation movement to avoid damaging the black mangrove

Bolivia for ZLC
Bolivia does not rule out seeking acces to the Central American and Panamanian market through a commercial franchise in the Colon Free Zone (ZLC). Bolivian ambassador, Edgar M. Soliz said, “We are seeking to strengthen the commercial interchange with Panama and the region, promoting minerals, organic products, wood and textiles, for the benefit of both parties”

Noriega properties for sale
All the properties of fomer general Manuel Antonio Noriega are at present for sale, it was confirmed by Luis Porras of the Ministtry of Economy and Finances, when he proceeded to clean and fumigate the former residence of the one-time”strong man” in the exclusive suburb of Altos de Golf, San Francisco.

Vying for refinery
Panama is among the Central American countries such as Costa Rica, Guatemala, and Honduras which are interested in becoming the site for a refinery in Central America valued at US$7,000- million, it was reported by the Office of the Secretary of Energy of Mexico. Mexico is the driving force behind the project and has promised to supply 80,000 barrels of crude oil daily for refining in the next eight years.

Las Nubes:

Residential project in El Valle enters phase 2

Key personalities of the Las Nubes Proyect pose at the ceremony to launch the second phase. They are (L to R) Johny Roux, director Sra. Carmen Moses, marketing and publicity manager, Carlos Moses, Juan Raúl Moses and René Martinelli, directors.

THE SECOND phase of Las Nubes was launched last week by the property developers Inv. Moses Realty. This is a mountain community in El Valle de Antón, more than 3000 feet above sea level, giving it a spring-like climate of 20 to 30 degrees centigrade all year round.

The project is located in the mountain chain of an ecological corridor and is one of the best places in Panama to observe exotic migratory birds.

Johnny Roux Moses, representative of the developers, said that the architecture and design take into account the topography of the land. All the materials are natural: stone, wood and imported bricks.

There are four types of houses and sizes of plot vary from 1000 m2 to 4000m2. They have three or four bedrooms, kitchen, living room, dining room, den, terrace, maid´s room, bathrooms and garage.

Las Nubes is a private community with security. Around a hundred houses will be built. Ninety per cent of the first phase has been sold. Phases two, three and four have already started.

The project will have walking trails, excursions, special activities and bird watching platforms. They are also planning to build an "ecological" hotel with SPA and gymnasium.

Oil spill at Chiriqui Grande provokes big legal battle

The spill of crude oil at the port of Petroterminales de Panama (PTP) at Chiriquí Grande in February has caused a legal and civil furore.

The residents of the area, who are mainly fishermen decided to sue PTP for $500 million damage to the environment and their main source of income. Guerra y Guerra, the attorneys acting on behalf of the 16 affected communities put forward the complaint to the Maritime Tribunal.

The tribunal decided to seize 5.4 million barrels of crude oil with a value of $300 million, that were stored at PTP. The oil however, is the property of Castor Petroleum, a client of the PTP, who want their oil back. They are asking the Supreme Court of Panama to overturn the decision of the Maritime Tribunal.

Meanwhile, the operations at the Petroterminal have shut down and the workers are demonstrating in protest.

Sports

Japanese flyweight champ retains crown against “La Araña”

The Japanese boxer, Takefumi Sakata defeated the Panamanian Roberto "La Araña" Vásquez by two points and retained the fly weight world crown of the World Boxing Association (WBA).

Sakata triumph was unanimous. The judges voted: 116-112, 116-113 y 115-113.

The champion won with conviction, when he managed to fight back after a few bad rounds. Vasquez, was winning at the beginning, but Sakata showed that he was a superior boxer.

Sports

Panama penalized at Panamerican Games in Río

Participation of Panamanian athletes in the XV Panamerican Games in Rio di Janeiro, from July 13-29, has been put in jeopardy by disputes among the directors of Panamanian Olympic Committee, POC, amid accusations of appropriation of money destined to pay for the sportsmen´s trip. This provoked the suspension of Panama from the International Olympic Committee, barring the Panamanian delegation from carrying its flag, sing its national anthem or wear its colors.

The Panamerican Games start today Friday and up to our press time, no solution has been found. Athletes are unhappy, especially Irving Saladino, number one in the world in the long jump, who refuses to compete without his flag.