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VOL. 13 #2 -- Jan./ Ene. 12-25, 2007
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Isthmian Update

Some of the news in Panama

Panama´s growth highest in Latin America
Panama´s economy will show the highest growth in Latin America in 2007 according to the projections of the International Monetary Fund (IMF) and the Economic Commission for Latin America and the Caribbean (Cepal). Cepal estimates that the economic growth of Panama this year will be 6.5% which is above that predicted for Argentina, Chile and Venezuela which headed regional expansion in 2006.

Colon Free Zone Booming
Commercial movement in the Colon Free Zone during the month of October reached US$1,517.5-million, reflecting an increase of 15.3% with regard to the same period of last year. This growth is attributed to an increase in the number of businesses there, that now total 1,750 companies installed and 685 represented, it was reported by the deputy general manager of the Free Zone, Juan Fidel Macias.

In spite of the customs conflict with Colombia, which caused losses of more than US$400-million, the Colon Free Zone reached its goal of commercial transactions, set in 2006, of US$13, billion.

The Colon Free Zone plans to duplicate the physical area by 2008. This involves adding nearly 500 hectares of land to the zone to attract new companies said, general manager, Nilda Quijano.

Treaty of Trade
Since 2004 Panama has been in negotiations with the United States for a free trade agreement. But, in the last round of negotiations in Washington D.C. the representatives of the US Commercial Office (USTR) and the Panamanian negotiators decided to change the name of the treaty. Now it will be referred to as the Treaty of Trade Promotion (TPC) and not the Free Trade Treaty (TLC) as it has come to be known since the conversations began.

Legislation for Tourism
The recently approved government Bill. No. 270 establishes that travel agencies and tourism operators will be classified as "wholesale commerce", which implies an opening of the market so that foreigners can establish this type of business in Panama.

International Interest in Canal expansion
Following interest shown in the expansion of the Panama Canal by French investors the French government has honored Panama Canal Authority (ACP) Administrator/CEO Alberto Alemán Zubieta with its highest order la Légion d´ honneur.

The president of Brazil, Luis Inácio Lula Da Silva, visited Panama early January attracted by the possible participation of Brazilian businessmen in the Panama Canal expansion and the interest of Panama in Mercosur and the production of ethanol.

Famous Visitors
Brad Pitt and Angelina Jolie visited Panama and immediately showed their interest in investing in the country. The couple, wearing comfortable and simple attire, arrived without their children.

Former US president James Carter, also visited Panama and said that he trusts that the trade treaty between Panama and his country will be ratified by the US Congress. Carter, who spent New Year at the house of the Foreign Minister, Samuel Lewis Navarro, on Contadora Island, visited Miraflores locks, accompanied by president Martin Torrijos, Lewis Navarro and members of the board of directors of the Panama Canal Authority.

Bank Merger
Banco General and Continental Bank, two sizeable banks of fully Panamanian capital have merged to create the BG Financial Group Inc. Federico Humbert, president of the board of directors and of General Business Investments (EGI), and owner of Banco General, and Stanley A. Motta, president of Continental Financial Group, owner of Continental Bank, signed an agreement to integrate their operations.

Construction capacity overload
Construction companies working with the government are arriving at the limit of their operating capacity because of the high investment in infrastructure in both the public and private sectors. This year, the Ministry of Public Works (MOP) showed the first indications of the problem. On four projects the companies had to place cash performance bonds.

Concern over Coiba Fishing
Representatives of environmental organizations denounced the intentions of the government, through the recently created Authority of the Aquatic Resources of Panama (ARAP), to modify the law that created the Coiba Island National Park to permit industrial fishing in the zone of exclusion where the development of this activity is at present prohibited.

Architects speak out about cancelled skyscraper
The reasons given by the Spanish businessman Adolfo Olloqui for suspending the construction of the skyscraper Palacio de la Bahia on Avenida Balboa, were refuted yesterday by Jesus Diaz Architects, the company which designed the original plans. Architect Jesus Diaz and engineer Oscar Ramirez stated that the businessman was alrealy fined for building a wall with specifications that were not adequate to bear the weight of the building. Olloqui told La Prensa newspaper that the skyscraper, planned to be 350 meters tall with 97 floors was "unfeasible" and that "the design was beautiful, but impossible to build".

Social security quotas
In 2007 businessmen will contribute US$20-million as a consequence of the increase by 0.50% of the management quota in Social Security payments established in law 51 that reformed the constitutional law of the Social Security Fund (CSS). Article 223 indicates that from January 1, 2007 the owners of businesses will pay an additional quota equal to 0.50% of the salaries that are paid to their employees, and that the money will be for the illness and Maternity Program.

 
 
 

King of Cobra Castle

By David Dell


The castle, in the midst of a pine forest.

The things you see when driving through Panama! If you take your time the journey can be filled with one extraordinary sight after another. A case in point, is the Pino del Cobra Castle.

This classic example of architectural whimsy can be found at kilometer 300, on the Pan American Highway just after you cross the Cobra River bridge, and a few kilometers before Los Ruices. Tucked away in the pine trees is this stone and concrete structure complete with moat and cantilevered drawbridge.

I just had to find out the "when," and more importantly the "why" of this structure so I ventured into the grounds. The owner and builder, Jack Aulestia, met me. Jack Is still in good shape despite his 70 years of age. Between my Spanglish and Jack’s English I managed to solve the mystery.

Jack said that after retirement he had nothing to do. One day, he recalled a book he had read as a child about Robin Hood and his merry men. The pine trees on his property reminded him of England's Sherwood Forest –so there and then he decided to build his fairy tale castle.


The moat and drawbridge.

I asked him if it was the classic movie with Errol Flynn that inspired him? "No," he said, he had never seen the movie. This idea came solely from the book.

I doubt if his castle will ever grace the pages of Architectural Digest, but who cares; its setting amid the towering pines trees overlooking the Cobra River is perfect. "Are you thinking of selling this?" I asked, the answer was a clear and unequivocal, "no!"

Jack took me upstairs and showed me his study which opens onto the drawbridge. The drawbridge doesn’t move and doesn’t connect to the other side of the moat. At the end of the drawbridge there is a drop of 15 feet or so directly onto the rocks of the moat wall. So I imagine this would be the place to invite the wicked Sheriff of Nottingham to go for a stroll on some dark, moonless night.


The "King", Jack Aulestia.

Jack is obviously a man who reads a lot – his library was full of technical magazines and books including Scientific American and an English translation of Albert Speers book, "Inside the Third Reich." Speer, as the historically astute will recall was Adolph Hitler’s architect. Perhaps in the labyrinth’s of Jack’s castle there are some dark dungeons? I really didn’t feel like pursuing that line of enquiry.

Jack Aulestia is one of life’s rarities – he actually went and fulfilled his dream.

Too many of us die without our song being sung, without our poetry being read and without our soufflé ever reaching the oven.

Would the valiant Robin of Loxley feel at home among the pine trees of Panama? Would he and his merry men applaud this man’s dream? There is little doubt in my mind - they sure would.

 
 
 

Let the paddling season begin!

By Craig J. Weincek


The club sponsors the Ocean-to-Ocean Cayuco Race, an event unique to Panama.

The 54th annual cayuco racing season is about to get underway. Under the sponsorship of Club de Remos de Balboa (CREBA), the Balboa Paddle Club, a series of cayuco races are scheduled to begin on Jan. 27 with a seven-mile paddling race along the causeway. Three other races are scheduled, culminating in the world renowned Nissan Ocean to Ocean Cayuco Race that will take place March 30, 31 and April 1.

Cayucos are dug-out canoes, usually fashioned out of a single tree, that traditionally have been used by the indigenous indians of Panama as their main form of transportation. Recognizing the historical and ecological significance of these simple but utilitarian boats, the Boy Scouts of America, back in 1954, under the leadership of Wes Townsend, organized the preparation and racing of these primitive crafts into a merit badge activity, which grew in popularity.

However, in 1999 with the end of the American era in the Canal Zone and the subsequent exit of the boy scouts, a void was created that threatened a tradition that featured a sport that was unique to Panama. That’s when the Balboa Paddle Cub was founded in 2000 by a small but dedicated group of adult and teen-aged volunteers in order to fill the vacancy left by the scouts and keep the tradition alive. According to Pablo Prieto, the founding father of CREBA and a past participant, whose children also competed, "We are a non-profit club dedicated to the promotion of the sport of paddling and the conservation of the Panama Canal watershed."

Marisa De Arco, the President of CREBA, explained "Our mission is to foster the sport of paddling cayucos for both youth and adults through a team-oriented program that emphasizes endurance and healthy competition in an atmosphere of environmental consciousness and social responsibility."


The Cayuco Race that takes place between March and April.

By encouraging area youth and adults, both native and ex-pat as well as visiting athletes to paddle native indian dug-outs, the Balboa Paddle Club hopes to fulfill its vision, which is to encourage "an appreciation for native treasures unique to the Republic of Panama, including such things as indian lore, local flora and fauna and the Panama Canal."

Once again an ambitious series of four races are scheduled for Panama’s dry season.

The Balboa Yacht Club Cup, Jan. 27
Really a tune-up race, the teams of four, male female and co-ed start at the Balboa Yacht Club and then paddle for four kilometers up around Flamigo Island and back along the causeway.

The Melia Panama Canal Cup, Feb. 10
This 3.6 mile circuit race, emphasizes teamwork and control as the paddlers must circle the course twice.

The Gamboa Rainforest Resort Cup, March 17
Held in the Chagres River in front of the Gamboa Rain Forest Resort, this race is actually a series of cayuco "drag races," with heats of three boats sprinting along a short course of just a quarter of a mile.

The Nissan Ocean to Ocean Cayuco Race, March 30, 31 & April 1
The grand daddy of all cayuco races, this year’s event could host over 90 teams, with a real international feel to it. In addition to many local teams, both native Panamanian and ex-pat, teams from Central and South America, the United States and even Europe come for the opportunity to have a totally unique, world-class sporting experience in one of the most unusual and scenically beautiful settings anywhere. The teams compete in two categories, the Trophy Class, 14 to 21; and the Open Class, 22 and over. Every team that completes the arduous coast-to-coast course receives a patch signifying their accomplishment. Meanwhile, a few of the strongest teams vie for Master Paddler honors which can only be accomplished by collecting all five colored beads signifying a victory in all five stages of the three-day water marathon. This prestigious award, which has proven to be a motivator for the kids, was created by Marcos Ostrander in the 1980s.

Prieto, who is the race coordinator is quick to point out that "we count on the support of the Autoridad del Canal de Panama (ACP) The Panama Canal Authority to conduct a safe event in canal waters that can be enjoyed by the participants as well as the spectators."

Another event planned that did not have a date as of press time is the annual Panama Canal Railway train trip to the Melia Panama Hotel. With the support of Dave Starling, the railway President, this train ride serves as a fund raiser to help support the club’s series of races. For more information, as well as date and time, be sure to check www.cayucorace.org.

The costs of promoting these races are considerable, not the least of which is the preparation of the boats, which start out as primitive dug-out logs and are streamlined by local crafctsmen and some of the competitors in a small workshop near the Diablo boat ramp. "We’re also looking for more sponsors," DeArco mentioned. "We’d love to build a clubhouse, which would give a place for the youngsters and volunteers to gather," DeArco said. "We’re trying to present a positive image for the sport of paddling and for Panama, so we can use all the help we can get."

"We think this sport is very beneficial to our kids," Prieto commented, "since it teaches discipline, commitment and teamwork. We also think that the international aspect of the ocean to ocean race helps to promote tourism and shows off the youth of Panama in a favorable light."

 
 
 

The dangers of illegal hunting


A macaw. The species is on the verge of extinction due to illegal hunting.

Compared with other countries of the region, Panama still has a healthy natural environment –the habitat of countless animal species. But deforestation and illegal hunting are rapidly diminishing the populations of many endemic wild critters.

Due to the abundance of species, it is relatively easy to purchase wild animals on the streets of places like San Felipe, in Panama City. Many visitors and expats are tempted to purchase some of these animals as pets, often ignoring the terrible damage inflicted to animals during and after the capture process.

Nestor Correa, a U.S.-trained biologist who is currently working on a doctoral degree in Zoology, is the head of Asociación Panamericana para la Conservación, a non-profit organization established in 2005 which seeks to educate the public on the problems caused by the illegal hunting and displacement of endemic animals.

He told The Visitor: "People ignore that in capturing a single bird, for example, hunters are forced to cut down entire trees, which obviously kills many nests in the process, as well as the habitats of many other animals. Another alternative is to shoot the birds. Once the animal is captured, its claws are either removed or damaged, which lessens the animal’s chances of survival. In order to bring a single bird into Panama City from the forests, dozens of injured toucans, macaws and other species are captured, many of which die on the way. Those that manage to leave the country have a very low survival rate."

Other sought-after animals are crocodiles, felines and small mammals which are unfit for life in cooler regions, such as North America and Europe.


A tapir, locally known as "Macho de Monte" (jungle man). An endangered mammal.

Through its Animal Rescue Program, Asociación Panamericana has saved dozens of wild animals in recent months, many of which were released into the wild by their former owners, often with captivity-related injuries.

Although most animals under the APPC’s care are successfully treated and released (the re-education of an animal for life in the wild is a difficult process, says Correa) some do not survive. Last December, after seeking the advice of international vets and animal conservancy experts, the Association took the decision to put a Crested Eagle "to sleep". The eagle, a rare bird of prey similar to the Harpy Eagle, was using one of its claws as a crutch after sustaining bad injuries in captivity in eastern Panama.

For more information on the APPC’s animal rescue program, call: 202-5995; www.panamericancon.org



List of endangered species/ Animales en peligro de extinción

 
MAMMALS / MAMIFEROS
Nombre Común Nombre Científico
Nombre Común Nombre Científico
Venado Cola Blanca Odocoileus virginianus
Venado Corzo Mazama americana
Venado Corzo Chocolate Mazama gonazoubira
Tapir o Macho de Monte Tapirus bairdii
Puerco de Monte Tayassu pecari
Saino Tayassu tajacu
Conejo pintado Agouti paca
Manatí Trinchechus manatus
León o Puma Americano Felis concolor
Tigre o Jaguar Felis onca
Manigordo u Ocelote Felis pardalis
Tigrillo o Margay Felis wiedii
Tigrillo Congo Felis yagouaroundi
Poncho o Capibara Hidrochaeris hidrochaeris
Perro de Monte Speothos venaticus
Jujuná o Mono Nocturno Aotus trivirgatus
Yerré o Mono Araña Ateles fusciceps
Mono Tití Saguinus geoffroyi
Mono Colarado Ateles geoffroyi
Mono Ardilla Saimiri oerstedii
Mono Aullador Alouatta palliata
Mono Cariblanco Cebus capucinus
Ñeque Dasyprocta punctata
Oso Caballo Myrmecophaga tridactyla
Oso Hormiguero Tamandua mexicana
Tapacara Gato Balsa Cyclodes didactylus
Armadillo Dasypus novemcinctus
Armadillo Rabo de Puerco Cabassous centralis
Gato de Monte Urocyon cincereoargenteus
Gato manglatero Procyon cancrivorus
Nutria, Gato de Agua Lutra longicaudis
Gato Solo Nasua nasua
   
   
 
BIRDS / AVES
Nombre Común Nombre Científico
Nombre Común Nombre Científico
Paisana Ortalis-cinereiceps
Pava Negra o Norteña Chamaopetes unicolor
Guichichi Dendrocycna autumnalis
Pato Real Cairina moschata
Quetzal Pharomabhris mocino
Aguila Arpia Harpia harpyja
Perdiz Serrana Nothocercus bonapartei
Guacamaya Azul y Amarilla Ara ararauna
Guacamaya Verde Ara ambigua
Guacamaya Bandera o Escarlata Ara macao
 
Guacamaya Roja Ara chloroptera
Loro Moña Amarilla Amazona ochrocephala
Guaquita Ara severa
Gallito de Monte Odontophorus guajanensis
Anade Real Anas platyrhynchos
Pato Crestudo Sarkidiornis sylvicola
Pato Rabudo Anas acuta
Pato Cuchara Spacula clypeata
Pato Calvo Mareca americana
Pato Pechiblanco Aythya affinis
 
  
REPTILES
Nombre Común Nombre Científico
 
Nombre Común Nombre Científico
Tortuga Verde o Blanca Chelonia mydas
Rana dorada Atelopus varius zeteki
Tortuga Cahuama Caretta caretta
Tortuga Mulato Lepidochelys olivacea
Caimán Aguja Crocodylus acutus
Babilla Caimá crocodilus fuscus
Tortuga terrestre Geochelone (testudo) carbonaria
Tortuga Carey Eretmochelys imbricata
Tortuga Canal Dermochelys coriacea
Boa Constrictor constrictor
Iguana Iguana iguana
   
 
 
 

How to develop property in Panama

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

Let the construction begin! Hundreds of real estate projects are beginning construction this month with the start of Panama’s dry season. I see many foreigners coming to Panama seeking real estate investment opportunities. Some come to only purchase one or two properties. Others come to make serious profits by developing Panama’s vast landscape. Whether you plan to develop a small real estate project or a hundred private home lots, you need to understand the laws and process for real property development in Panama.

PERMIT PROCESS: For building apartments, condominiums, or homes; you need to go through Panama’s Permit Process for which you must hire experts.

EXPERTS: The type of experts you need to hire to get residential lot development permits are:
1. A surveyor. The first step is to get the property surveyed topographically by a Panamanian licensed topographer / engineer. The Spanish name for this expert is agrimensor.
2. A Panamanian licensed architect to design the Master Plan.
3. A Panamanian engineer to prepare the construction drawings.
4. A Panamanian licensed environmental engineer to prepare an Environmental Impact Study.

COSTS: Currently, surveyors charge in the range of $200 per lot or per hectare (2.4 acres per hectare) for regular linear surveys (outlining the perimeter, size and borders of the property). Topographical surveyors charge from $150 up to $500 per hectare, depending on the location of the property, condition of the property, and the specifics needed (such as identifying specific species of trees, depth of rivers, etc.). It is important to hire a surveyor that is reliable, and provides accurate data with computerized surveys (usually done using a program called AutoCAD).

Environmental Impact Studies range in price from as little as $750 to $75,000, depending on the size of the project, impact on the environment, and the environmental engineer you hire for the job. For large developments with high environmental impact, I recommend hiring a top quality environmental engineering firm to handle the Environmental Impact Study. A large firm has the human resources and organization to prepare an approved study under harsh scrutiny. For smaller, non-impacting projects, an individual environmental engineer may suffice. However, please note that the Environmental Impact Study is essential. If the project is rejected by ANAM, you may be forced to wait up to 2 years to re-present the project for approval.

Now you are ready to present your documents to the government agencies.

In the second and final part of this article, in the next edition, the author details the government agencies which have to approve development plans –and how to deal with them.
 
 



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