Welcome to the Panama Weekly News Roundup! It’s been a busy week here with the elections coming up, and we look at the legacy of outgoing President Ricardo Martinelli. We also look at the progress of the Tocumen Airport expansion, and why Venezuelans are finding work, and a home, here in Panama. Here’s the latest:
Venezuelans Find Jobs and a Home in Panama
With the current political and economic crisis in Venezuela, many Venezuelans are flocking to Panama for a better life. According to Bloomberg, 233,921 Venezuelans entered the country in 2013, which are nearly 100,000 more than entered just a few years earlier. While many of these people are tourists, many more have come to work, and are enjoying a favorable immigration policy, which encourages skilled foreign labor.
With close cultural ties, more open immigration laws, and plentiful jobs, Panama City, the capital, has dozens of Venezuelan-run restaurants, yoga studios, and bakeries. Cable TV packages include Globovisión, historically an antigovernment Venezuelan channel.
Wedged between Colombia and Costa Rica, Panama has lured workers with economic growth that has averaged about 9 percent per year since 2008. Unemployment is 4.1 percent, a record low. A $5.25 billion expansion of the Panama Canal, scheduled for completion in late 2015, will create more jobs and has prompted investments in banks, mining, and real estate, including a new Hard Rock hotel. “We’ve had to open up our immigration policy to attract more skilled labor,” says Panama Finance Minister Frank De Lima.
Source: Bloomberg Businessweek
OAS Electoral Observers Arrive in Panama Ahead of Sunday’s Ballot
In anticipation of this weekend’s national elections, members of the OAS (Organization of American States) have arrived in Panama to monitor. Former Peruvian presidential candidate Lourdes Flores is leading the mission, which aims to make sure the electoral process runs smoothly, and according to Panamanian law.
The Mission, composed of citizens from 15 member states and 5 observer countries to the Organization of American States, is already present in the 10 provinces of Panama as well as in the municipal counties.
As part of their tasks, the members of the Mission will hold meetings with governmental authorities and local electoral officials, political party representatives and civil society. Likewise a group of experts has been working for weeks on the monitoring of key aspects of the electoral process such as campaign financing, the participation of men and women in the election, the role of the media, electoral security, the vote abroad, and the resolution of electoral disputes.
Source: MercoPress
Tocumen Airport Expansion 38% Complete
With passenger traffic continuing to increase, the pressure is on for Panama’s largest airport, Tocumen, to adjust to the volume. Over the past three year’s, they’ve been doing just that, adding new airlines, and expanding terminal space. Last year alone, the airport reported profits of $133 million, serving nearly 8 million passengers, a record for the Central American hub. This number is not lost on investors, who have made substantial financial commitments in order to complete the project.
Norberto Odebrecht , the Brazilian construction company that is building the $679 million dollar project is finishing pouring the concrete slab of the second main building of 75,000 thousand square meters. It is also paving the four-lane access road from the Corridor Sur to the terminal.
To finance part of the expansion, Tocumen SA was authorized to issue bonds for $650 million. The placement began on October 4, and there was a need to issue only $75 million. As of 2011, the debt acquired by Tocumen is not counted as part of the non -financial public sector, even though the state owns 100 % of the shares of the airport.
Source: Newsroom Panama
Review of the Martinelli Administration – The Outgoing President of Panama
Panama will choose a new president on Sunday, marking the end of current President Ricardo Martinelli’s five-year term. Martinelli has been in office for one of the most prosperous periods in the history of the country, and leaves with many accomplishments, and a little controversy. This week, we took a look at his legacy, and what he’s done during his time in power.
The most visible legacy of Ricardo Martinelli’s presidency has been the massive investment made into public works projects throughout the country. The overall cost was estimated at $20 billion, and was part of a national strategy to make Panama a logistics and business hub, and thereby attract more foreign business (source).
These projects include new roads, hospitals, water filtration plants, and major urban developments in the capital city. The most notable of these have been the Cinta Costera, the large coastal park that lines the downtown bay, and the Panama Metro. Both projects broke ground under Martinelli’s administration, and have served as a physical legacy representing his time in office.
Continue reading about our Review of the Martinelli Administration
