News

Isthmian Update

Some of the news in Panama

More Television
Eight companies have applied for concessions from the Authority of Public Utilities (ASEP) to enter the television market. Four are Venezuelan, one Guatemalan, one Colombian and two Panamanian. The ASEP has not yet revealed the commercial names of those interested.

Darien migrants worry
With the ceding of extraordinary powers to president Martin Torrijos by the National Assembly and the reforms proposed to the immigration regulations a wave of concern has hit immigrants in the Darien region. Bishop Pedro Hernandez Potter, vicar of Darien, reported that the Episcopal Conference has planned to emit a pronouncement on the processing that the National Department of Immigration practices with the foreigners who arrive in Panama and who deserve a more humane deal, given their condition as poor people. Thousands of Colombians have always resided in Darien province. The Colombian Consul in Panama makes a periodic census of how many are there. At one time, Panamanian politicians gave residence and identity papers to many in exchange for their votes.

Fight against corruption
The daily newspaper "El Siglo" commented that the promise of "zero corruption" by the current government of Martin Torrijos has been only that, "a promise" In 2007 the Anti-corruption District Attoney’s Office of the Attorney General’s Office has been handling 477 cases. There are also under way some 20 cases for embezzlement and crimes against the patrimony for a total of US$2,775,749.67. At least the fight is on.

Courier business up
DHL Express plans to increase its courier services in Panama by 20% during this year, in view of the excellent results reached in 2007 and has already identified potential business says Sandra Miro, general manager of DHL Express for Panama.

Food fine
The largest fine in the history of the country was levied against a citizen of Chinese origin Aurelio Chen de Leon. He will have to pay US$1-million for introducing into the country food products without sanitary registrations. Chen de Leon accepted blame for an enormous cargo of food seized at one of his properties in Villa de Las Fuentes in September, receiving the fine from the Panamanian Authority of Food Security (AUPSA).

Social Security
The Social Security Fund (CSS) forecasts collecting this year nearly US$147 million from the increase of the employer-employee quotas that will rise from 18.50% to 20.25%, according to what is established in Law 51 of December 27, 2005. The quota of the workers rose from 7.25% to 8% and that of the employers from 11.25% to 12.25%.

The Fund plans to invest more than US$37 million in 2008 in new projects and improvements to the physical installations in different parts of the country. This was announced by the national director of Infrastructure and Support Services, Elsie Saavedra, who indicated that among the works are the Hospital of Changuinola, a project that over several years will cost more than US$12 million.

Europeans to invest
The enlargement of the Panama Canal, the construction of mega ports and the coastal strip highway are some of the subjects that interest the executives of the European Investment Bank. At a meeting between the First Vice-president, Samuel Lewis Navarro and the director general of operations of the bank, Jean Luis Biancarelli, the banker clarified the interest of the Europeans in financing some of these works.

Whither the weather
According to reports received by the climatic forum of Central America and the American polar weather satellite NOAA-N, rains could extend until the middle of February in the regions of Veraguas, Colon, Coclé and Darien. "The climate monitoring shows an imbalance in the rainy and dry seasons" said the director of Planning of the Ministry of Agricultural Development (MIDA), Carlos Escala. The situation is due to the climate change on a worldwide basis.

Construction 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.

Rodman Container Terminal
The Minister of the Presidency, Ruben Arosemena, presented to the full National Assembly the government bill that approves the contract between the State and the Singapore company Panama International Terminal Inc. (PSA), for the development, construction, operation and management of a container terminal on the old US Navy base of Rodman. Work was to begin on the terminal this month.

The Comptroller, Carlos Vallarino, endorsed the contract for the terminal which will have a capacity for 450,000 containers and an investment of over US$70 million. According to the contract, the company will pay the State US$9.00 for each container movement. This and other rates will be in force until 2011 when they will be revised by the State.

Illegals deported
The Immigration Department deported 1,680 people in 2007, the majority for being illegally in the country. The majority were Colombians, Ecuadorians, Chinese and Peruvians. The Immigration Department had an income of US$8,872,838 for services, among them payment for immigration permissions. This registration of income represents an increase of US$3.1 million with regard to the previous year. In 2006, the institutions deported 1,420 foreigners.

Canal project
Four international engineering consortia have been selected to bid for the construction of the new Panama Canal locks under "design and build" contracts, the Panama Canal Authority (ACP) announced. The Authority emitted the list of requirements for the tender for the design and construction of the third set of locks, that requires an investment of close to US$3,000 million. This project is the major component of the Program of Enlargement. Meanwhile the program for the second contract of dry excavation for enlargement of the Panama Canal is going according to plan and the parameters set by the ACP have been met and the order to proceed given to the Cilsa-Minera María consortium of Mexico.

Bus fare standoff
The threats of bus operators to increase fares by US$0.40 from January prompted the government to approve another US$2 million fuel subsidy over a period of four months but the bus operators are not satisfied and have demanded more State support for the purchase of parts. Otherwise, they say, they will increase the fare by US$0.40. Luis Rodriguez, president of the National Transport Chamber (CANATRA), gave the government an ultimatum of two weeks up to the middle of January to meet their demands.

The Minister of Commerce and Industries, Alejandro Ferrer, declared that this is the sixth time that the Cabinet has approved a subsidy for the bus operators.

Justice concerns
The US ambassador in Panama, William Eaton, speaking at the induction of Harley Mitchell as Chief Justice, said there still exists concern over the administration of justice in Panama; especially in the way it affects American investors in Panama Harley Mitchell, declared that he will confront corruption and that in his administration the Judicial Organ will stop being considered third rate. Mitchell said that one of the most urgent tasks is to guarantee legal security.

As new judges were being appointed to Supreme Court, a survey of the newspaper "La Prensa" carried out by the consulting firm Ditcher & Neira revealed that 61.3% of Panamanians think that the appointments will be made for political purposes, and not on the professional merits and past history of the contenders.

Panama-Taiwan relations

Panama denied that it intends to break diplomatic relations with Taiwan and establish them with the Popular Republic of China. The Foreign Minister, Samuel Lewis Navarro reiterated that the relations with the government of president Chen-Shui-bian are normal.

But in other press reports the Taiwanese Foreign Minister, James Huang, recognized that relations between Taiwan and Panama are "wavering". The government of Taiwan has launched a diplomatic offensive to hold on to their allies that are being pressured by Beijing to break links with Taipei and recognize the Chinese Popular Republic.

The Panamanian Association of Friendship with China presided over by the lawyer Oydén Ortega Durán a new judge of the Supreme Court published a resolution in which it urges the government to establish diplomatic relations with the Chinese Popular Republic as soon as possible. According to the association, this is more convenient for the interests of Panama because of the extraordinary economic growth of Popular China, and on the other hand it suggests maintaining trade relations with Taiwan.

A green warning was declared recently on the Rio Sixaola, in the province of Bocas del Toro, by the National System of Civil Protection (SINAPROC) because it is at its maximum level. Roberto Velasquez, director of the SINAPROC, said that this is a measure of caution. The same situation covers the Bayano and Alajuela lakes, and Gatún Lake.

Petaquilla study
The president of the Environmental Commission of the National Assembly, Milciades Concepcion, said that the Petaquilla Mining Project is complying with the requirements established in Decree 209, Article 38. A Forum of Public Consulation was held on the Environmental Impact Study, category III of the Gold Extraction Project in Molejón, that Petaquilla will carry out establishing norms of strict compliance.

Cement concession
An exoneration from import tax on equipment and machinery for the sum of US$21.4 million was requested in the middle of last year by the cement company CEMEX. Although Manuel José Paredes, Vice-minister of Domestic Trade, said that it "was not given", a business source indicated that "it was exonerated", although not for the requested total.

National Bank happy
The National Bank of Panama (BNP) closes this year with record figures. Its assets are about US$4,500 million, while utilities are to the order of US$135 million. This reflects a solid year, says the manager of the bank, Juan De Dianous, who emphasizers that among the achievements is the improvement of the quality of accounts receivable.

Tax exoneration
The Estate Commission of the Panama Municipal Council unanimously decided to maintain the tax exoneration requested by the Brazilian constructors of the Madden-Colon section of the Panama-Colon freeway which was given through the Ministry of Public Works. This commission, also approved exoneration of the 2008 Carnival Board from all municipal tributes.

Promote Indian Business
With the endorsement of the Inter-American Development Bank (BID), the Program of Native Business Development (PRODEI) will begin. Promoted by the government, the project aims to stimulate business capability and competitiveness in the Panamanian Indian towns.

Venezuelans come
The daily newspaper "El Siglo" reports that many wealthy Venezuelans, disturbed by the economic and political course in their country, are arriving in Panama Interested in buying properties. That flow probably does not reach the magnitude of the one from countries such as the United States or Spain, but the interest of the Venezuelans in investing and possibly establishing themselves in Panama grows in an unprecedented way, say experts and businessmen.

Drug busts
The Narcotics Division of the Department of Information and Police Investigation (DIIP) seized more than 20 tons of drugs in 79 operations last year. They also arrested 66 people with links to drug stealing, drug trafficking and money laundering, all this under the Patriot Act.

The economy
Various predictions are being made on the final result of economic growth in 2007. The Monthly Index of Economic Activity (IMAE) for January-October 2007, reflected an increase of 9% over the 8.2% in the same period of 2006, according to figures of the Comptroller’s Office. Hotels and restaurants, constructions, financial mediation, mining and quarries, commerce, transport, storage and telecommunications, were the most dynamic sectors, according to the report.

According to the former president, Nicolas Ardito Barletta, the 9% growth, an unemployment dropping to less than 7%, together with a balanced fiscal situation, a strengthened program of public investments and an extraordinary increase in exports, Panama enjoyed in 2007 the best economy that it has ever had.

The Panamanian economy will close 2007 with a historic growth of 10.5%, according to the economist, Arístides Hernandez, president of the firm of Latin Consulting. This figure exceeds the estimations of the government and of CEPAL, which estimate the growth at 9% and 9.5% respectively.

The cost of goods and services in Panama has risen 5,9% so far this year, according to the last report of the Comptroller’s Office. That is much higher than the historic average of the country of 1% inflation annually. In this general escalation of prices, food and beverages stand out because from January to November they increased by 9.9%. Among the products that have risen most this year are the cereal creams and flour (30.2%), fruits (18.5%), milk (17.7%) and fresh bread (14.4%).

The State budget will end the year with an increase of some US$400 million said the president of the Budget Commission of the National Assembly, Juan Carlos Arosemena. The US$7,489,000 predicted for 2007 rose to US$7,898,000. The Legislature approved additional funds of US$2.3 million for the Municipality of San Miguelito, US$12 million for the water supply and sewerage entity and US$5.6 million for the Ministry of Economy.

American Society looks on 76 years of history in Panama

The American Society of Panama is raising its prices for the first time in its 76-year history. Memberships will cost $50 after February 1 and renewals will be $40. But current members can still renew now for $25 and all arrears will be forgiven. New memberships are still $30 for the rest of the month.

They will also be holding a Dry Season Picnic at the US Embassy Residence grounds on Saturday January 19. This will serve as the Annual Membership Appreciation Picnic and the New Membership Drive. There may be a fee to subsidize a future event.

The organization is open to people of all nationalities and their membership is mostly made up of American and Panamanian businesspeople, US Embassy personnel and Canal Authority (ACP) personnel. Contact the American Society of Panama at ingrid@amsoc.org or visit www.amsoc.org

Tourism industry leaders suspicious of Ruben Blades’ new master-plan law

Tourism Minister Ruben Blades' "Plan Maestro" for tourism is under attack. Several key figures in the hotel and tourism industry are concerned about what the law might contain since it seems that the government will be pushing the bill through quickly. The National Assembly has granted President Martin Torrijos special power to deal with legislation at any time on several issues, including tourism. The the new law which Blades has promulgated could be passed at any time.

Blades previously stated that he would reveal his "Plan Maestro" for tourism in February in draft form and take input from the community before enacting the law, under which he hopes to steer tourism all the way into the year 2020. The "Organic" law he proposes to apply to his piece of legislation would apparently be untouchable by governments to come.

The local press reported that industry leaders like Herman Bern of Empresas Bern (Miramar Intercontienental, Intercontinental Playa Bonita) and Jorge Loaiza, Panamanian Hotel Association (APATEL) President and CEO of the Decameron Hotels here had not yet seen so much as a draft of the legislature proposed by Blades.

These reports inspired Tourism Minister Blades to write a four page public letter from Los Angeles on December 26 defending the necessity for his Master Plan for tourism and why he had not provided drafts. He also stated that the President has until the end of February to act.

On January 3, Jaime Campuzano, manager of Hotel El Panama and Panama Tourism Chamber (CAMPTUR) President Jaime Campuzano wrote an opinion piece in the daily newspaper La Prensa in which he implied knowledge of the proposed law. Campuzano stated that IPAT had been created in 1960 to give voice and vote to the private sector through a board of directors, thus "guaranteeing balance and participation of the real players of the industry: Investors who saw an important tourism destination in this beautiful land." He added: "We do not understand why today... the management of IPAT would propose a reform to eliminate the participation of the private sector in decision making."

Blades, whose term as Tourism Minister ends in 2009, will reportedly unveil his legislation in a January 10 meeting with the IPAT board.

Democrats and Republicans in Panama – a call to action

The Visitor has received the following press communication from Democrats Abroad:

Democrats Abroad is spon- soring the Democratic global presidential primary for the election which will be held February 5 – 12 in Panama. The millions of Americans living outside the US have 11 votes at the Democratic National Convention.

Republicans Abroad

Republicans abroad Panama is holding voter registration at their monthly breakfast meeting on January 16 from 7:30 am to 9:30 am at the City Club in the Credicorp building on Calle 50 in Panama City. No membership or fees are required, and the registration is non-partisan. For more infor- mation contact Repub-licans Abroad Panama President Renee Nielsen at 215-0250 or 6678-8538 or write
reneenielsen1@gmail.com or visit www.republicansabroadpanama.com.

Participants must be US citizens over the age of 18 on election day (November 4, 2008), reside temporarily or permanently in Panama, not vote in any other primary, and be a member of Democrats Abroad Panama, the local affiliate of the worldwide organization. Membership is free. Send name, Panama street address, email address and phone number to democrats.abroad.panama@gmail.com

Qualified persons may vote at the Democrats Abroad Panama voting center at the Elk's Club in Balboa on February 12 from 2pm – 8pm. Voters may join Democrats Abroad Panama by showing a US passport the same day. Registered members may also vote by mail, fax or Internet, but become a member by January 31.

Democrats Abroad Panama will hold their first meeting of 2008 on February 12 at 6:30pm at the Elk's Club in Balboa to elect the officers for 2008 – 2010.

Contact Democrats Abroad Panama at 264-9075 or 6636-0262.

Tourism perspectives “exeptional”

Last year was a good year for tourism in Panama and especially good for hotels, according to the President of the Panamanian Hotel Association (APATEL), Jorge Loaiza. The year closed with approximately 20% higher room occupation than 2006.

A number of new hotels are in the planning stage and the goal of the hotel sector is to reach a total of 24,000 rooms by 2010, which will bring the total jobs in the hotel industry to 180,000.

In Colon, the Radisson Colon 2000 hotel will have 102 rooms and a new $20 million Sheraton hotel will have 243 rooms.

The President of the Panamanian Tourist Chamber (CAMTUR), Jaime Campuzano said that tourism perspectives in Panama are exceptional and future success is guaranteed through understanding that the private sector be heard by the Panama Tourist Bureau (IPAT). The private sector should be allowed to take active participation in decision making that will benefit the development of such a promising industry in Panama.

Panama’s national bird

Sony, the Harpy Eagle dies

Sony, the Harpy Eagle, the only one of her kind in captivity has died. She was thought to be 45 years old. The Harpy Eagle is Panama’s national bird, a symbol of Panamanian nature and ecology.

The eagle was a popular attraction at the Summit Botanical Gardens in Gamboa. It was the first type of its kind that was studied in captivity.

The death of Sony has been considered a loss because she furnished information of great value and contributed to the knowledge of the species and helped to trace plans for its conservation.

The female eagle was rescued by officials of the Ministry of Agricultural Development (MIDA) touring the Darien province in 1998. They found her lying with an injured wing. She was taken to the Remon Race Track Zoo where she received medical treatment by Dr. Natham Gale and was later transferred to Summit.

The Harpy Eagle is native to Central and South American rain forests. A full-grown bird has a wingspan of around 40 inches in width and for its size is considered to have short, wide wings that help maneuver within trees to prey on monkeys, sloths and other small mammals.

007 Panama

“Bond 22” filming in Old Quarter

Don't be surprised if you meet James Bond on Calle Primera in Casco Viejo in February. Producers have chosen sites in San Felipe, Santa Ana and El Chorillo as well as the city of Colon and some beaches to film the upcoming movie, Bond 22. The production dates are set for mid-February and 700 Panamanian extras will take part.

Representatives of The Casco Antiguo Office will assist in the filming that takes place in the Old Quarter, though the majority of the properties slotted for filming there are private. Initial plans were to just film here for a week or two but producers have since extended their trip here for several months.

One survivor in Alto Boquete plane Crash

Three people died on Sunday, December 23 when a private Cessna 172 airplane crashed near Volcan Baru in the Chiriqui province. American business- man Michael Klein and his 11-year-old daughter Talia died along with the pilot, 21-year-old Edwin Lasso. The only survivor was 11-year-old family friend Francesca Lewis.

The plane went missing early on December 23 in foggy and rainy conditions according to the Panamanian Aeronautics Board (DAC). After an intensive search for two days rescuers found the wreckage of the plane and the only survivor injured and suffering from hypothermia, exposed to rain and cold. The crash site was at 3500 feet in the Las Ovejas sector of Alto Boquete. The girl was transferred to a hospital in David, Chiriqui and has since been released.

No official reports on the crash have been released yet. Klein was the owner of a tourist resort and several islands in Panama. He was originally from Santa Barbara, California.

Forlacol Insurance Inauguration

Industry leaders expand

If you are in Boquete for the fair, stop by an open house for the inauguration of the Forlacol Insurance and Mortgage Brokers Boquete office from January 10 – 20. They will hold their official inaugural gala on January 23 at 6:00 pm. Forlacol's new office in Chiriqui is located in the Doña Andrea Building, Suite #5, Main Street in Bajo Boquete.

Spanish prince to visit City of Knowledge

Spanish Prince Felipe de Asturias will visit Panama January 12 to 14. He will represent the Spanish Royal family in the inauguration of the Spanish Cooperation's Humani- tarian Logistics Center for Latin America in The City of Knowledge, located in the former Canal zone near Panama City.

A most amazing invention!

A salt cellar which really keeps salt dry

Forget the Ipod and hydrogen cars. The invention of the decade for Panamanians is a salt cellar which keeps salt dry.

This amazing device hit the shelves six months ago. Mr. Ramon Ismael Ramirez, Vice President and General Manager of Panasal, S.A. (who deserves the Vasco Nuñez de Balboa medal) said he was astonished at the success of his salt cellar which has a hermetically sealed cap which snaps off easily when in use.

"At our plant in Aguadulce, we adapted the technology to improve our product" he said. "Customers are amazed that right through the rainy season the salt keeps dry and pours like powder."

panasal@cwpanama.net

A “royal” day at the Canal

Cunard’s Queen Victoria to make inaugural Canal transit Jan. 21

By Neil McColl

“Queen Victoria”, latest addition to the famous Cunard fleet
shows her graceful lines.

January 21 will be a "royal" day at the Canal when the Queen Victoria makes her inaugural canal transit en route to Los Angeles. The luxury liner belongs to Cunard White Star Line of England.

The 90,000 ton Italian built Queen Victoria accommodates 2,000 guests in 990 staterooms with 1,000 crew members and a price tag of $330 million. The 964 foot ship was built to fit through the Canal with just two feet on either side of the 106 foot wide hull. The Panama Canal toll will be $266,000.

The enormous atrium is a spectacular feature of the ship
which accommodates 2000 guests.

The Queen Victoria is replacing the Queen Elizabeth II, the grand old lady which has crossed the Canal 28 times since her inaugural transit in 1986. Other queens of the Cunard line include the Queen Mary, too large for Canal transit but which has called at Cristobal and Balboa. She was launched in 1934. The Queen Elizabeth was launched in 1938 and retired in 1968 when she was destined to become a floating university but she caught fire and sank in Hong Kong. The Queen Mary II was launched in 2003.

These vessels served in World War II as troopships. All Cunard ships are titled RMS (Royal Mail Ship) instead of the standard SS (Steam Ship) or MV (Motor Vessel). Cunard is registered in Liverpool, England and was founded by Samuel Cunard in 1840. He was made Baronet by Queen Victoria when his line carried mail to North America by Royal Decree.

Chorrera International Fair set for
March 27-April 7

The Chorrera International Fair has been postponed. The event was scheduled to begin on January 16 but will now be from March 27 to April 7. The fair will offer activities for children, performances by local and international artists, livestock exhibitions, a rodeo and handicrafts.

German cruise visitors to Colon 2000

Colon 2000 Cruise terminal.

German tourists will come to Panama aboard the Aida Vita, a cruise ship affiliated to Carnival Cruises. This visit will be followed by nine more this season according to Aventuras 2000 general manager, Augusto Terracina, who says the ship will stop in Colon every 14 days with a new batch of tourists.

The tourists fly from Düsseldorf, Munich and Frankfurt to Aruba where the 42,289 ton Aida Vita has its home port. They stop at different ports around the Caribbean like Cartagena in Colombia, Isla Margarita off Venezuela, and Puerto Limon in Costa Rica. While in Panama, the tourists engage in eco-tourism, a ride on the Panama Canal Railroad, golf, kayaking, helicopter tours, says Terracina.

Tourism experts are excited about the German visit, citing that exposure to the Panamanian tourism market is important. Germans account for a major part of the global tourism market.

Omaha - style insurance returns

World Wide Medical Insurance offers special packages for individuals and small groups in need of quality major medical coverage in Panama and in the United States. This is a perfect solution for corporations and groups of individuals who require coverage at respected facilities like Johns Hopkins Hospital in Punta Pacifica for themselves or their employees.

Hospitalization insurance had its glory years in the 1970's when Mutual of Omaha offered collective plans in Panama which were very popular until the end of the 1980's. Now, almost 20 years later, World Wide Medical Insurance is offering a plan similar to Mutual of Omaha with coverage up to $2 million per person.

Visit www.expatshealthinsurance.com or contact Gonzalo de la Guardia at 6528-5096 or gdelaguardia@gmail.com.