Business & Economy Briefs

Historic church damaged

On February 11 high winds collapsed a wall at the San Francisco de las Montañas church north of Santiago, breaking apart one of the 16th century painted wooden altars. The church itself dates back to the 18th century, but some of its carvings are much earlier, the work of the first generation of indigenous sculptors that adopted Christianity. Restoration specialists for INAC, which was working on roof repairs at the time of the mishap, have begun to pick up the pieces and repair the damage.

IMF projects good times for Panama

The International Monetary Fund is projecting four percent growth for the Panamanian economy during 2001. In 2000 the economy only grew 2.3 percent overall, and shrank in many sectors. The fund pressed for further privatization and tax reforms as the keys to boosting the national economy.

RP to sell energy to California?

At the recent summit between US President George W. Bush and Mexican President Vicente Fox, Bush pushed a plan to link Mexico's and Central America's power grids to that of the United States. That would allow Panama to export electricity to power-short California, but before that possibility arises Fox's skepticism about the plan would have to be surmounted.

Exports went up last year

The government reports that Panama's exports rose nine percent in 2000, despite steep declines in shrimp and banana exports. The big increases came in sugar and fish meal.

New Amador projects

In the wake of the failure of most of ARI's hotel development plans for the former Fort Amador, the authority has announced that in their stead there will be a world fashion center and a medium-density housing project. If it ever comes to pass, the $14 million "Boulevard de Alta Moda" will include upscale boutiques and a center for international fashion shows.

Los Santos privatizes beach complex

A municipal beach recreation facility at El Rompio in Los Santos district may open after all. The buildings were completed a year and one-half ago, but the city found itself without the money to run it. Now the Los Santos city council has approved a contract to rent the place to one Edwin Alvarez Castro, who will pay $250 per month, equip the place and open its doors to the public.

Office rent up

Although the government has access to many vacant buildings at the former military bases, the Moscoso administration has dramatically increased the amount of rent paid to private parties for government offices. In 1997 the public paid private landlords $17.1 million in rent, but this year it's up to $28 million. That's not including moving costs. The beneficiaries appear to be for the most part Moscoso administration supporters and their families.

Water project on again

Construction of a water treatment plant to serve the eastern part of the metro Panama area is underway again. IDAAN had contracted with Aguas de Tocumen SA and work was underway last year, but the contract was voided last June because IDAAN signed it without the approval of the National Economic Council. The project lay dormant for many months until protests erupted in Pacora over the lack of potable water, at which time the government began to renegotiate the deal. Under the revised deal the company will receive some $800,000 less than anticipated in the voided contract.

French business delegation

On February 19 a delegation of 28 business representatives from France came to Panama. Well represented were engineering and construction firms that want to bid on canal expansion, metro Panama sewage treatment, bridge, road and energy projects. There were also consulting and financial companies among the delegation, plus helicopter and telecommunications equipment manufacturers who want to sell their products here.

Arias running to run La Prensa

Ricardo Alberto Arias, who served as Foreign Minister in the latter part of the Pérez Balladares administration, is running for chairman of the board of directors of La Prensa, "to return the newspaper to the high level of respect, objectivity and credibility" that he says it used to enjoy. The election will take place at the next shareholders’ meeting, and Arias’s cheering section includes former Vice-President Ricardo Arias Calderón, who is trying to have cartoonist Julio Briceño and editor-in-chief Stanley Muschett imprisoned for a critical cartoon. Also calling for change at La Prensa is Attorney General José Antonio Sossa, who is upset about a series of reports about the protection he has given to ex-American racketeer Marc Harris. Sossa recently lost his bid to have La Prensa business editor and three other journalists imprisoned for their reports on Sossa’s ties to Harris, because those reports were true.

Eight drown in maritime mishap

On February 9 the Don Jaime III, a boat loaded with cargo and passengers headed from Panama City to Punta Alegre, Darien sank in Panama Bay shortly after setting sail, resulting in the deaths of eight passengers. After making a sharp turn, the boat’s cargo shifted, causing the Don Jaime to capsize. The people who died were all below deck when the accident happened. The vessel’s captain is under arrest pending an investigation, but within hours after the sinking and before any investigation had been done, National Maritime Authority director Jerry Salazar declared that the vessel had not been overloaded as some of the survivors allege.

Mail Boxes Etc. gets OPIC backing

Mail Boxes Etc., a US-based multinational chain of private mail box and parcel handling franchises, will expand here with help from the Overseas Private Investment Corporation. OPIC has guaranteed loans that cover 80 percent of the financing needed to open the company’s Central American regional office here.