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VOL. 14 #1 -- Dec./ Dic. 28, 2007 - Ene./ Jan. 10, 2008
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Isthmian Update

Some of the news in Panama

2008 State Budgets
The State budget for fiscal year 2008, totals $8,321 million— $832 million more than in 2007. Of that total, $5,600 million will be used for operating expenses, while investments will be of $1,750 million dollars. The 2008 budget of the Municipality of Panama was also published. It exceeds $70 million, $9.3 million more than in 2007.

Wind power for Panama
Panama will produce wind power at "zero cost" from 2009 and with a capacity to export energy, it was revealed to the Spanish news agency, Efe, by the management of the Spanish company that will invest more than us $1,000 million in the project. The company, Enrilews, a subsidiary of the Spanish firm of Fersa Renewable Energies, will begin to operate two wind farms that will generate 400 megawatts between both.

Un Regional Center in City of Knowledge
The United Nations Development Fund (UNDF) will install a Regional Integral Center in Panama for Latin America and the Caribbean. Under a convention between Panama and the UNDF, this international center will give an adequate and functional presence to the agencies that form part of the UN. Panama gave the UNDF US$2,002,050,00 as a special fund to start the restructuring of an old US military barracks located in the City of Knowledge.

French ambassador criticised
After the French ambassador, Pierre Henri Guignard, took part in a dispute between the Electoral Tribunal and the French company Sagem, in a controversy over the tender for the new system of personal identification, the Electoral Tribunal judge, Erasmo Pinilla, presented a complaint against him, complaining of "his disrespect and interference in the internal matters of the country". The protest of Pinilla is contained in a letter sent to the Foreign Minister, Samuel Lewis Navarro, and comes after the French diplomat criticized the annulment of a tender that was won by the French company Sagem.

Albrook Mall expands
With an investment of more than US$40 million, the Albrook Mall began construction of 30,000 square meters of commercial space on the lands adjoining the Collins store, where it is planned to create some 200 more stores, it was confirmed by the vice president of the consortium, Angel Muñoz. It is expected to be completed within 8 months and will include a new food court with 30 restaurants.

Gonzalez against U.S. accord
The President of the National Assembly, Pedro Miguel Gonzalez, yesterday called for the revocation of an agreement to fight drug trafficking signed in 2002 between Panama and the United States. He considers that it violates national sovereignty. In a communiqué, the Assembly emphasizes that Gonzales, of the Revolutionary Democratic Party (PRD) government-- who is sought by American justice for the alleged murder of a US soldier-- affirmed that the Salas-Baker agreement "should disappear" because it allows both countries to exercise jurisdiction on arresting ships and to indicting their crew.

Hoteliers may win
The hoteliers may win their case against the Panama Authors and Composers Society (SPAC) which seeks to collect royalties for music or other entertainment in hotel rooms.

Rogelio Paredes, the governing Revolutionary Democratic Party (PRD) deputy, presented a draft in the National Assembly to modify law 15 of 1994 on "Royalties and Connected Rights". The draft intends to exonerate from fee collection the communication of works, interpretations or productions protected by law 15 of 1994, that are played in places where the public does not have access, such as private rooms (in hotels, for instance).

World Bank helps poverty programs
“The World Bank will destine US$400 million over the next three years to finance diverse programs for the eradication of poverty and to fortify fiscal management in Panama”, said the Frenchman, Frederic de Dinechin. For 2008 the financing will reach US$170 million.

Sanction for oil spill
The National Environmental Authority sanctioned Petroterminal of Panama (PTP) US$2,400,678 for the spilling of 5,000 barrels of petroleum in the Chiriqui Grande lagoon, where the company owns a crude oil terminal. The fine contemplates payment of US$399,296 for the cost of recovery of natural resources. The remaining US$605,382 is the punitive portion.

Hydroelectric concerns
Victor Urrutia, administrator of the National Authority of Public Utilities (ASEP) expressed concern that a number of hydroelectric projects are "in procedures" with the National Environmental Authority (ANAM) which monitors them for environmental impact studies. He commented on the urgent need for electricity generation.

Latin and Caribbean economy
The economy of Latin America and the Caribbean grew 5.6 percent in 2007, completing five consecutive years of expansion, according to a Preliminary Balance presented in Santiago by the Economic Commission for Latin America and the Caribbean (CEPAL). Panama, with 9.5%, Argentina, with 8.6%; Venezuela, with 8.5% and Peru, with 8.2%, headed the growth level of countries, while at the lower extreme of the scale were Nicaragua (3%), Ecuador (2.7%), Jamaica (1.5%) and the Dominican Republic (1.0%)

The performance of the Panamanian economy, measured through the Quarterly Gross Domestic Product (PIBT), maintained its dynamics for the third quarter of 2007, reaching a growth of 11.3 percent, with regard to the same period of the previous year. This is contained in a report of the Department of Census and Statistics of the Comptroller’s Office and emphasizes that the PIBT valued to constant prices of 1996, registered a total of US$4,302,2 million, that corresponds to a variation of $436,8 million for the quarter that was compiled.

Public debt up
The sum of US$1,570 million has been added to the balance of the public debt during the presidency of Martin Torrijos. According to the most recent report of the Department of Public Credit, published yesterday, the debt reached US$10,773 million at the closing of November. In September 2004, when Torrijos began his mandate it was at US$9,203 million.

Southern Corridor tolls
The audict announced by the Minister Public Works, Benjamín Colamarco, to verify the income of the Mexican consortium ICA Panama, in the collection of tolls on the Southern Corridor remains stagnant. According to a source of the Ministry of Economy and Finances (MEF), the minister has not yet presented the formal petition to proceed with the evaluation that should be done as a group with the Comptroller’s Office.

Teachers threaten strike
As the school year 2007 ends some teaching guilds have launched threats of a strike for 2008. The Association of Professors of the Republic of Panama (ASOPROF), through its leader, Andres Rodriguez announced that the warning would be maintained to avoid matters in the study plans being eliminated.

U.S. sex criminals sought
The US Federal Bureau of Investigations (FBI) warned Panama of the possible presence of seven dangerous American delinquents sought for sex crimes, reported the Technical Judicial Police (PTJ). It warned that "all these subjects are sought for crimes against modesty, integrity and sexual liberty and are considered extremely dangerous" and it asks members of the public that have information on their location to contact the PTJ, the US Embassy or Consulate.

Casinos do well
This year US$840 million is the gross earnings of Panama’s casinos. This registers a growth of 13.5% with respect to 2006, when the total income was US$740 million.

Colon Free Zone movement up
With commercial movement of more than US$1,500 million for the year, the Colon Free Zone (ZLC) is growing with expectations that it will no longer be viewed at international level as a simple duty free zone, but as the Logistic Center of the Americas, said the general manager Nilda Quijano.

Telethon Success
The 2007 20-30 Telethon raised $4,323,541,78 for re- equipping medical supplies and new technology in the burns and intensive care rooms of the Children’s Hospital. It will also contribute to carrying out individual donations of wheelchairs, surgery items, prosthesis, therapies and other projects.

In the 21 years that the 20-30 Telethon has been held it has collected US$58,177,263.00. Although this activity began in 1981, it had to be suspended in 1985 because of the instability in the country caused by the military dictatorship.

Minimum wage
A new minimum wage will take effect on December 16. The negotiators of the National Private Enterprise Council and the labor representatives agreed on a basic salary of US$325 for big businesses and US$310 for small businesses which translates to US$0.19 an hour for the first group and US$ 0.12 an hour for the second group.

Nearly US$117 million will have to be disbursed by the private sector in 2008 to respond to the new basic wage increase. Just for the two-week period until December 30 this sector should pay its workers a total of US$7 million more.

Mivi publishes city land plans
The Ministry of Housing (MIVI) will put on its web page, from now on, a tool that will permit users to see all the lands of the capital city. The web page of the MIVI is www.mivi.gob.pa The Minister of Housing Balbina Herrera, said that the users would be able to make all consultations and verify data brought up to date, without the need to go to the ministry. Herrera was pleased because, in her judgment, the entity that directs will be more transparent from now on.

Chinese language debate
The legislation that establishes the teaching of the Mandarin (Chinese) language in private and public schools continues to awake doubts and criticism. The Minister of Education, Belgis Castro, is against making the subject obligatory, but says it should be an optional course.

Panama’s shipping newspaper "The Bulletin" points out that there is a need for Panamanians to speak that Oriental language since the Panama Canal is transited each year by at least 500 chinese ships and we should understand the language of those people in the same way as we understand the English language.

GDP per peson
Chile has the best gross domestic product (GDP) per inhabitant in Latin America, but Mexico and Brazil are in the lowest category of the 12 countries that contribute more than 60% to the global economy, according to a report of the World Bank released yesterday. Those are the results of the statistical comparison of only 11 countries of the region (10 in South America plus Mexico) considered by the study as "of reference". Costa Rica appears in first place in Central America for PBI per cápita. Panama follows with just a slight difference of US$ 8.121.

 
 
 

New Book

Panama: An architecture and landscape guide


The book was presented by author Eduardo Tejeria Davis,
Rafael Pavon of the Andalusia Board, IPAT Minister
Ruben Blades and Spanish Ambassador, his excellency
Jose Manuel Lopez Barron.
Photo: Andrés Villa

Try to get your hands on a new book, "Panama: An Architecture and Landscape Guide". The book, by Eduardo Tejeira Davis, is in English and Spanish, containing over 400 pages and 900 images. It covers the architectural and engineering influences seen in Panama throughout the Spanish and North American colonization periods as well as Pre-Colombian and modern architecture.

"I hope it will be easy for people to acquire the book" said Tejeira. "Around 1,700 copies will be delivered to IPAT (The Panamanian Tourism Bureau) in late December from Spain."

The book was presented at the Canal Museum last month by IPAT and The Andalusia Board before government officials, diplomatic representatives, architects and historians. Tourism Minister Ruben Blades wrote the prologue. One part reads, "This book, more than an architectural summary, seems to me a diary, an urban spiritual inventory."

The Andalusia Board sponsored the production of this book with the cooperation of IPAT. The Andalusia Board maintains a strong interest in Latin America because their government, in the Andalusian capital city of Sevilla, was the colonial administration center for Spain.

Other similar guides have been produced by the Andalusia Board on cities such as La Havana, Mexico City, Lima, Morocco and many Spanish Andalusian cities. But Panama's is the only guide dedicated to the country as a whole including the landscape of the former U.S. occupied Canal Zone.

 
 
 

Assembly ratifies accord on building site safety

A full sitting of the Panama National Assembly ratified convention No. 167 of the International Labor Organization (ILO) to prevent construction accidents. The convention obliges the State to ensure that construction companies comply with the accident prevention requirements for safety of the laborers. It also requires the workers to comply with the safety rules, in order to avoid accidents.

 
 
 

Major remodelling projects advance in the Old Quarter


The old Hotel Colón will be re-named
Hotel Casco Antiguo.

Apart from the scores of residences currently being restored and re-modeled in Casco Antiguo, the Old Quarter of Panama City, several large scale restoration projects are also under way.

The former Hotel Colon on 12th Street is undergoing an $18 million process. It will be renamed Hotel Casco Antiguo and will also be ready at the end of 2009. On 1st Street, The Molon Apart-Hotel is being renovated completely inside by an Italian group. Outer walls will remain the same, but the interior configuration and design will all be new. The waterfront units will cater to longer term visitors.

To date over $200 million has been invested in the restoration and rehabilitation of Old Quarter buildings. Of the 940 properties in the area, only 10% are owned by the state, which is restoring its buildings to provide low-income housing for selected families who have lived in the area for generations.

The rest of the properties are privately owned. In August 1997 the government began offering concessions to investors who wished to restore Casco Antiguo properties. The latest extension recently expired in August a further renewal is expected to take a few months to pass the the National Assembly. Previous incentives included a mortgage rate three points below market, tax exoneration on resale sale of the property or commercial profits produced by the properties and free importation of materials used in construction.

 
 
 

Day of mourning to mark U.S. invasion proposed

Eighteen years after the U.S. invasion of Panama, that put an end to 21 years of military dictatorship, the National Assembly on December 20 approved in third debate the government bill that declares December 20 a day of "national mourning and reflection" and creates a "Truth Commission" that will investigate how many people died in the military intervention. The project, that needs the sanction of president Martin Torrijos, establishes the erection of a monument in the suburb of El Chorrillo in memory of the victims of the invasion, where the names of the dead will be shown.

The Chamber of Commerce, Industries and Agriculture of Panama, expressed its oppsition to the bill through its president, Domingo Latorraca.

Some commentators have pointed out that there was loss of life at the hands of the Panamanian military before the invasion, and although U.S. shelling totally destroyed the Panamanian military headquarters in El Chorrillo, a strategy used by Noriega’s "Dignity Batallions", was to burn buildings in the area and even shoot civilians who were fleeing the flames in order to accuse the U.S. of greater damage and slaughter.

 
 
 

Doctors win pay rise and other concessions

Doctors who work for the public health care system accepted a 25% salary raise, finally ending the 39 day medical strike that was affecting the country. Now doctors are saying that the next step is to stop the government from privatizing the Social Security system (Caja del Seguro Social).

They say that the government intends to create a Unified Health System (UHS) integrating the Social Security system with other public health facilities.

Currently, 75 percent of Panamanians are enrolled under Social Security. The other 25 percent must use public hospitals and clinics such as the Santo Tomas hospital in Panama City which charges fees based on the patient’s ability to pay.

They will continue to fight privatization

Panama’s Social Security system was introduced in the early 1940’s by former President, Arnulfo Arias Madrid. It was created as an autonomous government institution under the Ministry of Health, funded by salary deductions.

Benefits of the system, other than health care, include women’s maternity leave as well as retirements plans.

Facing a $3 billion deficit, the system underwent reforms including raising the age of retirement and increasing contributions.

Popular sectors and unions criticized the reforms alleging that the intention was to privatize the Social Security system, calling it Unified Health System (UHS).

According to doctors, during the days of strike they were able to analyze the possibility that the institution be turned into a private entity, which according to them will not benefit the general population.

Another concession which the doctors won through the strike was a promise of improvements of the infrastructures to give physicians control of the hospitals. Officials of the Social Security Fund (CSS) announced that for 2008 they plan to invest more than $35 million in new projects and improvements to the hospitals of the country, confirmed Elsie Saavedra, National Director of Infrastructures and Services of Support (DINISA).

Many of the doctors employed by the Social Security system work part time and devote the rest of the day to their own private practices.

Now that the strike is over, doctors will have to take care of five additional patients per day in an attempt to recover lost appointments.

 
 
 

SKAL congress here


Enrique Pesantez, presidente
de SKAL en Panamá.

SKAL International, an important tourism organization, announced that they will hold their 35th Latin American Congress this May 1 to 5 in Panama. The congress will unite 500 tourism industry professionals in the country to network. SKAL encourages sharing ideas, opportunities and industry matters on a personal and business level.

SKAL International Association of Travel and Tourism Professionals was founded in Paris in 1934. The organization currently has 22,000 members in 90 countries and has been established in Panama since 1955.

This is an important step for Panama's tourism industry according to SKAL Panama's President Enrique Pesantez, who says that SKAL can put a destination on the map.

 
 
 

Panama welcomes North Europeans

Panama's tourism industry is turning its sights toward northern European travelers. The first round of Swedish travelers began arriving in groups of 40 this month aboard chartered flights direct from Stockholm. This is the result of the Panama Tourism Bureau's (IPAT) participation in a Swedish tourism expo called Gutenborgo 07. Swedes will continue arriving in Panama for seven-day tours throughout their country's long winter. More positive results of IPAT's exposure in similar markets are expected.

IPAT invested $740,000 in 2007 to participate in tourism fairs in Holland, Germany, Norway and Finland, promoting Panama as a destination country. Much attention was given to KLM's new direct flight from Amsterdam to Panama, beginning in early 2008. Carl Frederik Nordstrom, Sub Manager of IPAT said, "The tourists of these countries are traditional users of an airline brand like KLM, and successful participation in this important flight will bring up the number of travelers from Europe."

Nordstrom just came back from meetings in a series of Northern European cities. Working with Panamanian consulates, tour operators and travel agencies he wants solidify the sale of specific packages for the dry season.

In one such meeting aboard a tourist boat anchored in Amsterdam, COPA Airlines officials met with Folke West Travel Club representatives. Folke West designs and sells tour packages that incorporate over 30 Panamanian hotels, restaurants and tourists attractions in Chiriqui, Bocas del Toro, Panama City and Farallon.

The European press also played a large role promoting the country. Nordstrom was interviewed by the Swedish daily "Aftonbladet" about the diverse options in Panama, the real estate boom, retirement opportunities, tourism growth and investment opportunities. Other media interested in Panama were: Business Travel & Leisure, Tour Press Holland Infoweb, Tourism Marketing Concepts, Aqua Visuals and Flite Reps.

IPAT plans to participate in 38 international tourism expositions in 2008.

 
 
 

Miami Herald launches Panama edition

Panama's number one daily newspaper, La Prensa, began printing an English section in early December. Every day in "The Miami Herald Panama Edition by La Prensa", readers can find local news stories in English in the back section of "The Miami Herald", on sale around Panama and available by subscription.

According to La Prensa general manager Mr. Cesar Tribaldos Giraldez, his newspaper and The Miami Herald have a special relationship spanning nearly three decades. La Prensa printed their first newspaper in August of 1980 with the help of Miami Herald editor Carlos Castañedas. He came to Panama and assisted with the layout and production. La Prensa printed “The Miami Herald Latin America Edition”, distributed to all of Central America and the Caribbean, from 1980 to 1997.

During the Noriega years, La Prensa was shut down three times for publishing material contrary to the dictatorship. While banks were frozen during the economic crisis provoked by unrest against Noriega's regime, The Miami Herald stepped in and sent paper to Panama for La Prensa to print on. Although they are not stockholders in La Prensa, they even sent cash to cover payroll during this period.

After Noriega's thugs broke La Prensa's presses in 1988, the newspaper remained closed until the dictatorship fell. La Prensa began again on December 26, 1989 with a four-page edition. They grew immensely in popularity in the early 90s as newspapers that flourished under Noriega's rule fell quickly into the background.

Scott Mahler is the editor of the Panama Edition of The Miami Herald and works with two other North American journalists.

 
 
 

Three day weekends in 2008

Two national holidays will be moved to create three-day weekends next year in the interest of tourism and commerce under new Law 351. Martyr's day will still be celebrated officially on Wednesday, January 9 but the day off from work and official activities will be on Monday, January 7. Independence day from Spain, on November 28 will be pushed up to the following Monday, December 1.

Hoteliers repeatedly petitioned the National Assembly for this change, and finally were able to prove with hard evidence the highly beneficial effects that this past November's holidays had. They calculated that $45 million dollars were pumped into the industry with the movement of tens of thousands of tourists into the countryside during a long weekend.

 
 
 

Sports Illustrated lists long jumper

The magazine "Sports Illustrated Latino" listed Panamanian long-jumper Irving Saladino from Colon among the 12 most important Latino athletes of 2007 in their most recent December issue.

Saladino beat his own South American record of 8.56 meters on August 30, 2007 in Osaka, Japan where he became World Champion and gold medal winner with a jump of 8.57 meters. The cover of the magazine and the #1 spot on the list went to Argentine soccer player Lionel Messi.

"SI Latino" is the Latin American version of the popular American publication, "Sports Illustrated". Get a free subscription (six editions) throughout 2008 by registering at www.silatino.com.

 
 
 

Panama swings into baseball season

In Panama, baseball is more than just a sport. The championships bring all the provinces together to root for their team. Music will play and flags will wave in support of the teams.

The 39th Annual Youth League National Baseball Championship 2008 will begin on January 4. Panama Metro and Chiriqui will play the first game in Panama City. Historically, these are the best teams.

Eleven teams from Darien, Colon, Panama Metro, Panama West, Cocle, Herrera, Los Santos , Chiriqui, Chiriqui Occidente, Bocas del Toro y Veraguas will be divided in two groups and play in rounds against each other until the two best teams are selected for the championship. Cash prizes will be awarded in the amounts of $3000 and $5000.

 
 
 

U.S.ambassador speaks again on corruption

United States Ambassador William Eaton has spoken out publicly once again regarding corruption in Panama. During a seminar on transparency and accountability at Hotel El Panama, Eaton stated before government agencies including the judiciary and presidential office, that despite efforts made by the Panamanian government to combat corruption, there were still "problems."

Eaton was criticized by President Torrijos for speaking out about corruption in the judicial system this past December. Though Torrijos recognized the problem, he said that "The judicial problems of Panama should be resolved by nationals."

This time around, Eaton noted problems that the court system has had in the past and made an effort to point out the work of those who are trying to combat corruption. But he maintained firmly that the fight against corruption is a priority for the U.S. Embassy.

 
 
 

Colombia power share proposed

Colombian officials are negotiating with Panama to increase the proposed electrical connection between the two countries from 300 to 600 megawatts. The project is a venture between Panama's State Electric Transmission Company (ETESA) and the ISA Group of Colombia. Mines and Energy Minister of Colombia Hernan Martinez says the studies are near completion and that negotiations are well advanced.

The proposed project is expected to help the economies of both countries and serve as a conduit for energy trade for Central and Andean South American countries. To protect the rain forest in Darien, 55 kilometers of the cabling would be underground.

 
 
 

Cleaning the bay

Panama's government signed a $40 million loan from the European Investment Bank to finance a component of the project to clean Panama Bay.

The $40 million will be used to build two treatment plants which will intercept the contamination which currently flows directly into the bay from the capital city. This is just one step in the long project to clean the bay in front of Panama City.

 
 
 

Boquete tourist center is ready for summer


CEFATI in Boquete.

The information center of the Panama Tourist Bureau (IPAT) in Boquette has got a face lift recently for the high tourist season. They have spent $40,000 on painting, gardening and lights.

The Center has the awkward name of CEFATI an acronym for the Centro of Interpretation and Facilities Center. It also serves as a meeting place where the public can enjoy cultural and artistic events, a cafeteria and an observatory overlooking a spectacular view of Boquette.

 
 
 

Study ethanol sources

The Panamanian Institute of Agricultural Investigation (IDIAP) is developing studies to research alternatives to petroleum. The high cost of oil is pushing the government to follow an international trend in investigating alternative energy from sources like corn, cassava, sweet potato and sorghum (a plant that produces molasses).

Authorities are currently working on a law to regulate the production of biodiesel and ethanol.

 
 
 

Nikki Beach Playa Blanca feature in N.Y. Times

The New York Times travel section has recommended Panama in a December 9 article titled "The 53 places to go in 2008". Between Bogotá and Alexandria, at #22 on the list "Playa Blanca, Panama" developers got some major press for their sex-appeal residential resorts. Here's what New Yorkers read:

22. PLAYA BLANCA, PANAMA
Playa Blanca is about to hit the tabloids. Nikki Beach, the très chic beach club in South Beach and St.-Tropez, is opening a gated resort in the once-quiet fishing village on the Pacific coast of Panama (www.nikkibeachpanama.com). The developers are already calling it the ''sexiest project in Panama.'' Less fabulous families need not worry.

Superclubs (www.superclubs.com), the all-inclusive resort, is also dipping its toes into Playa Blanca with the 300-room Breezes Panama, scheduled to open in 2009.

 
 




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