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May The Forth Be With You - But No Booze Saturday

Posted 02/05/2024

On Saturday, May 4, at noon, the dry law begins for Election Day.  Stores, distributors and party centers must suspend the sale of alcoholic beverages. From noon Saturday, May 4, until noon on Monday, May 6, the sale, consumption, acquisition and gift of alcoholic beverages will be prohibited in canteens, bars, wineries, nightclubs and party halls.  All these premises where alcoholic beverages are sold must remain closed.  In the case of supermarkets, the liquor section is usually closed to apply the dry law, as part of the prohibitions prior to the opening of polls on May 5. 

The Electoral Court published Decree No. 29, of May 30, 2022, which calls for the 2024 general elections and approves the regulations of the process, which includes measures such as the application of the dry law.  In accordance with the guidelines of the Electoral Tribunal, the consumption of alcohol will only be allowed to foreigners who are visiting the country for various reasons and are staying in hotels authorized for the sale of alcohol.  Private companies that manage games of chance, through license or concession, must ensure compliance with the prohibition on the consumption of alcoholic beverages during the electoral period in which the dry law applies.  Those persons or companies that violate these provisions will be subject to sanctions in accordance with article 550 of the Electoral Code, which may include fines from $100 to $1,000.

https://www.newsroompanama.com/news/may-the-forth-be-with-you-but-no-booze-saturday

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Final Poll of Candidates for May 5 Presidential Elections

Posted 02/05/2024

We did a study on line with Newsroom Panama and the results that we received by email, mirrors exactly this survey that was done the last few days in the public.  This poll listed here reached over 2400 persons of legal voting age, who reside in homes with electronic communication devices (TVs radios, cell phones etc.) in 10 provinces and regions.  The survey was done with a computer tablet and face to face with potential voters. Undecided voters were not included.  By age group, the voting sample was made up of 433 people between 18 and 25 years of age; 507, from 26 to 35 years old; 629 from 36 to 49 years old, and 832 people over 50 years of age.  The study included the provinces of Darién and Bocas del Toro, which you will not find published by other polling companies.  The sample poll was taken April 27 to May 1.  It is the survey with the most up-to-date data possible and is being released prior to the Electoral Code ruling where at 11:59 pm this Thursday May 2 it is prohibited to publish studies related to the elections of May 5, 2024.

https://www.newsroompanama.com/news/final-poll-of-candidates-for-may-5-presidential-elections

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Copa Airlines Adds Belize to its Flights

Posted 01/05/2024

Beginning in June of 2024, Panama’s Сора Аіrlіnеѕ іѕ adding Belize to іtѕ agenda wіth thе іntrоduсtіоn оf уеаr-rоund, nоnѕtор flіghtѕ frоm Раnаmа Сіtу.  Thе аіrlіnе wіll ореrаtе flіghtѕ оn Моndауѕ аnd Frіdауѕ uѕіng Воеіng 737-700 аіrсrаft.  Тhіѕ ехраnѕіоn mаrkѕ а mајоr орроrtunіtу fоr Ѕоuth Аmеrісаn trаvеlеrѕ ѕееkіng соnvеnіеnt ассеѕѕ tо Веlіzе’ѕ сulturаl hеrіtаgе аnd nаturаl bеаutу.  Раnаmа’ѕ Тосumеn Іntеrnаtіоnаl Аіrроrt ѕеrvеѕ аѕ а kеу hub fоr trаvеlеrѕ frоm Ѕоuth Аmеrіса соnnесtіng tо dеѕtіnаtіоnѕ thrоughоut thе Саrіbbеаn.  Тhе Веlіzе Тоurіѕm Воаrd wеlсоmеd thе mоvе, ѕtаtіng thаt thе ехраndеd ѕеrvісе “wіll роtеntіаllу еlеvаtе thе trаvеl ехреrіеnсе, еnсоurаgіng mоrе tourists tо сhооѕе Веlіzе аѕ thеіr nехt dеѕtіnаtіоn.”  Сора Аіrlіnеѕ іѕ the biggest and best Lаtіn Аmеrісаn аіrlіnе with headquarters іn Раnаmа Сіtу, Раnаmа. Тhе аіrlіnе ореrаtеѕ а соmрrеhеnѕіvе nеtwоrk оf flіghtѕ thrоughоut Сеntrаl Аmеrіса, Ѕоuth Аmеrіса, Nоrth Аmеrіса, аnd thе Саrіbbеаn.

https://www.newsroompanama.com/news/copa-airlines-adds-belize-to-its-flights

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The Panama Universal Educational Social Assistance Program (PASE-U)

 Posted 29/04/2024

April 25 the Government was to begin disbursing a total of 32 million 229 thousand 530 dollars for the corresponding payment of the Universal Educational Social Assistance Program (PASE-U).  It is to pay for scholarship competitions, distinguished positions, art, culture, sports and disabilities to 247,319 students who were to receive payments through their Clave Social card.  As of Monday, April 29, the payment of the Universal Educational Social Assistance Program (PASE-U) started, which is intended for students who receive the benefit through checks.  The information was provided by the Institute for the Training and Use of Human Resources (Ifarhu), detailing that this program covers 495,380 primary, high school and high school students, both from official and private schools.  According to Ifarhu, the total amount of the benefit amounts to $50,161,503, corresponding to the first payment of the PASE-U for the year 2024.  The disbursement will be carried out following the schedule published on the Ifarhu website.

https://www.newsroompanama.com/news/the-panama-universal-educational-social-assistance-program-pase-u

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The Panama 8 Presidential Candidates - Elections May 5 Sunday

Posted 28/04/2024

Here are the eight presidential candidates, six men and two women, six lawyers and two economists.  Sunday, May 5, are the presidential elections in Panama.  Left to Right: Gaby Carrizo, Martin Torrijos, Romulo Roux, José Raúl Mulino, Meliton Arrocha, Ricardo Lombana, Zulay Rodriguez, Maribel Gordon

The president of the Electoral Tribunal (TE), Alfredo Juncá expects millions of attacks on an old and weak TE computer system as it counts votes come election day May 5. 

Sunday April 28, approximately 2,000 people attended the campaign closing for the presidential candidate for the Realizing Goals (RM) and Alianza parties, José Raúl Mulino.  In the parking lots of the convention center of the El Panamá hotel, everything was offered: palettes, chorizos, meat on a stick, water, etc. Members of Mulino's campaign team also distributed banners from both parties and t-shirts with the slogan: “El Loco con Mulino”, in reference to the great absentee from the event, Ricardo Martinelli. His speech was a summary of his campaign proposals and assured that he will obtain a landslide victory on May 5.

Beyond the discrepancies and divergent positions, there is a clear consensus by La Prensa: the Supreme Court of Justice must issue a definitive ruling on the constitutionality or not of the candidacy of José Raúl Mulino, before May 5.

One of the candidates is Ricardo Lombana from the Other Way Movement (MOCA), who will close out his campaign in the Plaza 5 de Mayo in the town of Santa Ana Tuesday, April 30.

The National Police, through the National Operation Directorate, announces the different detours that will be made during the days of campaign closures in the sectors of Vía España and Avenida 5 de Mayo, reported Lieutenant José Pineda.  Lieutenant Pineda points out that on April 30 there will be investments at the height of El Hotel El Panamá towards the Brasil road and on May 1 it will be on the 5 de Mayo via Calidonia road.

On May 1, the closing campaign of José Gabriel Carrizo, of the PRD and Molinera alliance, will take place. It had been announced that it would be on Via España, but the candidate indicated that he would do it at the headquarters of his party on Mexico Avenue, in the district of Calidonia.

Catholics will pray for May 5 elections

https://www.newsroompanama.com/news/the-panama-8-presidential-candidates-elections-may-5-sunday-1

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Panama Economy and Exports

Posted 29/04/2024

Bananas remained the leading product, representing 15.3% of total exports, followed by frozen shrimp with 10.2%, medicines (antihistamines and antipyretics) with 7.9%, raw teak with 7.3%, iron or steel waste with 5.4% and crude palm oil with 3.8%.  Panama achieved a record in accumulated exports as of the first quarter of 2024, with $1.2 billion, where seafood, meat, cardboard, packaging and coffee products stood out. Panamanian companies want to expand their presence in Europe and the Caribbean.  Without copper, Panamanian exports up to March 2024 grew by 13% compared to the first quarter of 2023, an increase of 13%, said Francisco Mola Ortega, vice minister of Foreign Trade of the Ministry of Commerce and Industries (Mici).  “We just broke record numbers.  Reaching almost $1.2 billion, we achieved a 13% increase,” she said.  Mola Ortega indicated that among the range of products that Panama offers are: seafood products, meat products, cardboard, packaging and coffee. “Actually we have a fairly wide range of products,” said the vice minister while participating in the launch of the recognition of the National Accreditation Council (CNA).  Data until last February indicate that exports of Panamanian goods amounted to $170.3 million, of which $122.4 million correspond to exports registered by the agricultural, agro-industrial, industrial and fishing sectors and $47.9 million to value-added exports from special regimes, being the second highest value recorded since 2010. 

According to the latest report published by the Commercial Intelligence Office (Intelcom) of the Mici, based on data from the National Institute of Statistics and Census of the Comptroller's Office, the performance of January and February reflected an increase of more than 9%, compared to the same period of 2023, which recorded exports of $150.4 million.  Other products that, for the first time, were exported were glass cleaners or degreasers based on quaternary ammonium and pastes, powders and other scouring preparations. Accumulated data suggest that the main destinations of Panamanian exports were: Netherlands, with $18.8 million; Taiwan, with $15.5 million and the United States, with $15.1 million. Just as exports grow, Panamanian companies are also looking for new markets, especially the European bloc and the Caribbean.  Businesses such as Formetal, SA, and Ecotopia Teak plan to expand their marketing in these regions, according to what their managers told the Mici team, which carries out the “Knowing Your Exporter” program.  “The Caribbean, for example, is a natural market for us and there are great possibilities for our companies in the industrial, agro-industrial, fishing and agricultural sectors. We continue to promote exports to this destination to make ourselves known and we continue to raise our hands saying that Panama has the technology, production and logistics to be an important player in that region,” said Eric Dormoi, National Director of Export Promotion at Mici.

During a tour of the company Formetal, SA, the Mici representative also highlighted the trajectory of this exporter, with a presence in more than five countries, dedicated to the manufacture of metal-based products such as iron and steel doors, aluminum profiles, steel, light steel structures, roofs, among others.  “We held a meeting with the general manager, Esteban Lam, and the export manager, Alejandro Bistrain, where they informed us that they will soon be opening to two new markets in the Caribbean. Excellent news, without a doubt,” he said.  Meanwhile, the institution's team visited the Ecotopia Teak plant, an FSC-certified teak wood reforestation company, located in Chepo, east of Panama City, which recently inaugurated its new teak classification and measurement line by means of laser.  This technology is the first in the region, which marks a transcendental milestone in terms of production and export, since its value-added products reach Germany, Denmark and, soon, other countries in the European Union.  “Exporting added value is the way. Giving added value to our raw materials diversifies the country's exportable offer and increases our numbers. So far in 2024, teak wood had a growth of more than 70% versus the same period in 2023, presenting a significant recovery,” said Dormoi.  Through the “Meet your Exporter” program, Mici experts have visited more than 100 companies, between 2019 and 2024, from different productive sectors, being a successful initiative to support exporters in the national territory.  Netherlands, with $18.8 million; Taiwan, with $15.5 million and the United States, with $15.1 million.  

https://www.newsroompanama.com/news/panama-economy-and-exports

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Banco General 'Yappy' Makes an Important Update

Posted 27/04/2024

People ask in Panama, what is Yappy?  It is a money transfer app where you can send money through mobile devices such as your phone.  The Banco General ‘Yappy’ platform processes 25 million transactions monthly, quickly and securely, between 1.4 million users.   Around $9.5 billion in transactions was reported by the Yappy payment platform in 2023. Sending money in real time through mobile devices is the trend throughout the world, Panama included.  Each bank has its own technological developments and services.  In the case of Banco General, Yappy operates almost like an electronic wallet to pay and receive money instantly using only the users' cell phone number or companies that are in the platform's directory.  Felipe Motta, executive vice president of Consumer Banking at Banco General, explains that 85% of the entity's customer transactions are carried out through the mobile application, online banking or through debit and credit cards.  “The digital banking ecosystem is growing more every day and will continue to grow. Customers can make all types of transactions digitally: make payments for public services, recharge their Metro and Bus cards, their Panapass, their cell phone data, make transfers to third parties and pay other persons through Yappy, among other services,” Motta highlighted. What is the minimum and maximum amount that can be sent through Yappy?  The minimum to send is $0.01 and the maximum to send per transaction is $9,999.00. And transfers can be made to 21 thousand businesses.  Yappy launched in June 2019 and was quickly embraced.  In 2021 we reached the figure of one million Yappy users and we aimed at 1.4 million users who transact.  In the month of December 2022, on several days of the month, more than one million transactions were carried out per day through Yappy.  In total, in the month of December 2022, more than 26 million transactions were carried out through Yappy.  Yappy is the most used digital payment platform in our country.  What other trends do you see in the world of payments?  The trend away from cash and checks is clear. We are seeing that the consumer wants to be able to pay through their cell phone, without friction and quickly.  “There are already more than 21,000 companies and enterprises affiliated with Yappy Commercial that appear in the Directory and can receive payments without being present in the same place as the client and with the exact amount of the transaction. We are helping many people to be included in the financial system, not only because they have access to it, but because it has a low cost and is easy to use,” highlighted the Executive Vice President of Consumer Banking at Banco General.  In recent days, a conversation and debate has been generated on social networks about the security of transactions and how to avoid sending money incorrectly through instant payment platforms such as Yappy. What happens if money is sent by mistake on Yappy?

Yolianna Alfaro, commercial director of Yappy, points out that it is essential that users pay due attention when sending and receiving money to avoid making errors in the transaction.  The first security filter is the user himself, she adds.  What recommendations do you give for transferring money through Yappy?  Yappy is an instant payment method, that is, money is transferred in real time.  The client is always the main security control, since he is the one carrying out the transaction. The first fundamental step when making your payment is to carefully review the amount and cell phone number to which you will send the Yappy.  The app helps you by asking at times other than the process if you are sure it is the amount and number you want to send the money to.  It is important to reiterate that due to banking regulations, financial institutions cannot enter their clients' accounts and withdraw money that they have received from third parties, whether for erroneous payments or similar.  In order for the bank to debit (withdraw) money from an account, it is necessary to have authorization from the account owner or a court order.  What to do if a user makes a mistake when transferring money on Yappy? Banco General's payment application made an update this week and now shows new functions for sending and receiving money. A function was added that allows you to make an immediate refund if you receive the wrong Yappy. This was one of the first complaints from users, that there was no function to recover the money sent or return it. Yolianna Alfaro, commercial director of Yappy, explained that they listened to customers and added new functionalities to improve transactions and the experience with digital payments.  Another change is that you can see the name of the person to whom the money will be sent through Yappy, just by entering the cell phone number. The system identifies the person and also generates a message so that the user can have time to corroborate the data. This safety control measure is to prevent errors.  The other feature is that you can now add emojis and GIFs to the money sending message.  Likewise, you can easily search for the operations carried out by Yappy, both shipments and transactions received from individuals and businesses, to control payments. The application also shows a more accessible menu, to quickly find the option to scan QR codes in stores and split the bill with other people.  Yappy is used by 1.4 million people who can use it within the Banco General mobile application or in the Yappy App

https://www.newsroompanama.com/news/banco-general-yappy-makes-an-important-update

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Panama Begins 5G Tests using Huawei

Posted 27/04/2024

The first tests of the 5G network began this week after the National Authority of Public Services (ASEP) loaned a part of the spectrum of the 3.5 GHz band to the company Más Móvil of Cable & Wireless Panamá to run this new technology which increases the connection speed.  The operator TIGO would also be granted the same, if it requires it for the same purpose.  The ASEP administrator specified that the commercial and official deployment of the 5G network is conditional on the regulatory body first carrying out a public consultation and then officially designating the spectrum as a concession to each telephone and internet operator in the country.  The tests of the 5G network by Más Móvil will be for a period of two to three months with a pilot plan for some corporate users in the commercial, tourism and port sectors.  He also indicated that 5G infrastructure will be available in the Electoral Court on Election Day May 5 so that the media can use that network to transmit data and audiovisual information at a higher speed. 

The use of 5G infrastructure has been a controversial issue because the United States imposed restrictions for the services and infrastructure and equipment of Huawei, one of the leaders in this network, to operate in that market.  The United States claimed that the Chinese company Huawei was spying on the US with their technology and shut down sales of Huawei products in the States.  In Central America, Costa Rica closed its doors to Huawei, in Chile they did allow Huawei to participate and in Panama they are more open to the operation of the Chinese company.  A spokesman stated that “Huawei is King, it rocks”.  In fact, the infrastructure partly used by Más Móvil in the test they carried out at the MoveOn event at the Megapolis Convention Center was operated with Huawei technology.  The general manager of Más Móvil specified that they have an offer from three companies: Huawei, Ericsson and Nokia.  In practice, two different infrastructures can be used depending on the service and sector and even by area, but there is still nothing definitive.  “Currently we are only testing. “We are studying the proposals of the three suppliers for these 5G issues: Huawei, Nokia and Ericsson,” Lorenzo confirmed.

https://www.newsroompanama.com/news/panama-begins-5g-tests-using-huawei

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Kuara - New Financial Payment Methods for Panama

 Posted 26/04/2024

Photo, from left to right: Jorge Morgan, Executive President of MMG Bank. Jorge Enrique Vallarino, General Manager of Global Bank. Nathalie Angulo, Representative of Kuara. Alfonso Prieto, Executive President and General Manager of Banesco.

(Apr 26/2024) Panama - The launch of Kuara was announced, an independent platform designed to transform the way people carry out their financial transactions in Panama.  Kuara arises with the purpose of promoting financial inclusion and expanding online payment options, offering an experience characterized by its efficiency, security and convenience.  This innovative platform will allow users to make payments securely without sharing information with third parties, initially using the cell phone number as an identifier.  In addition, Kuara will be incorporated into the Electronic Banking of each of the affiliated entities, which will further facilitate the transaction process.

Nathalie Angulo, representative of Kuara, commented: «The name Kuara not only evokes a currency known to everyone, but also represents ease, versatility and above all trust. “We wanted something that resonated with everyone, was easy to remember, and at the same time reflected our mission to simplify and democratize financial services.” Kuara marks a milestone in the evolution of financial services in Panama.  In its initial phase, Kuara will be available to clients of Global Bank, Banesco, MMG Bank and Banistmo has also joined. 

The platform will continue to evolve in the coming months, with the incorporation of other financial entities and the implementation of new functionalities, such as payment to businesses.  Kuara invites all financial institutions to join the new era of mobile payments, where financial inclusion and payment options are accessible to all. Each of the affiliated banks will announce through their official channels the date on which their clients will be able to use this innovative platform and enjoy its benefits.

https://www.newsroompanama.com/news/kuara-new-financial-payment-methods-for-panama

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Panama Canal Solutions by Dr. John Stagl

Posted 26/04/2024

A Practical and Sustainable Solution to the Congestion at the Panama Canal By Dr. John Stagl - April 27, 2024

History

The dream of digging a water passage across the Isthmus of Panama uniting the Atlantic and Pacific oceans dates back to the early 16th century.  Nevertheless, one of the first attempts to actually create the canal was by the French in February of 1881. Throughout the endeavor, the French were significantly challenged by the nearly impassable jungle; day upon day of torrential rain, insects, malaria, snakes, swamps, hellish heat, smallpox, yellow fever and the mighty Chagres River.  Most engineers deemed the task impossible.  Unfortunately, there were nearly a thousand deaths early on due to many factors, however principally they were a direct result of disease carrying mosquitoes.  After 11 miles of canal had been dug and more than 20,000 men had died by 1888 and nearly 300 million dollars was spent, the project was declared unsuccessful and essentially abandoned.  As such, the canal remained unfinished.  Nevertheless, the dream remained alive. 

I 1892 with the urge of President Roosevelt, the United States reached an agreement to buy the rights of the French canal property and equipment for a sum not to exceed $40 million. Through rigorous and challenging negotiations with Colombia at the time, an agreement was made to move forward with the project. Subsequently, on November 3rd, 1903, the nation of Panama was born declaring its independence from Columbia.  In 1904, the U.S. took over with a payment of $10 million to secure the Canal Zone. With the agreement, they obtained the rights to build, and then set out to write the Panamanian Constitution.  As construction began, the Americans were soon met with the same fate as the French.  Yellow fever was a considerable deterrent however utilizing tactics developed in Havana years before by killing the mosquitoes, Dr. William Gorgas became the chief sanitation officer of the Panama Canal.  

By draining the swamps and the widespread use of pesticides, Dr. Gorgas’ solution proved to be a godsend.  Ultimately, this provided for entire towns to be developed with housing, churches, schools, and a brand new social construct.  Therefore, before the end of the next year, yellow fever had been officially eradicated.  The new engineering provided a means to damn the Chagres River to create Gatun Lake, thus becoming an integral part of the canal system.  However, it wasn’t until May of 1913 that the first tugboat traveled successfully through the first set of locks and out into the lake.  On August 15th 1914 the Panama Canal officially opened.  Today, the Panama Canal remains as a 50 mile long, man-made canal cutting through the Isthmus of Panama that connects the Pacific and Atlantic oceans and is considered the single most significant engineering accomplishment of the United States. 

Engineering: How it Works

The Panama canal uses a system of locks with two lanes moving ships in either direction that operate as water elevators, raising ships approximately 26 meters from sea level to the level of Lake Gatun and then lowers them on the other side back to sea level. As mentioned previously, this is truly an engineering marvel, yet not without challenges.

The Problem Today

To raise the ships during passage, the canal needs to be filled with fresh water by gravity in order to separate the salt water, with the accompanying flora and fauna, from the water of the two oceans. Lake Gatun is a man-made lake from the Chagres River and other rivers that act as a source of freshwater.  Unfortunately, in times of drought when water levels are diminished, the amount of ships passing through the canal is gravely affected. The problem is so vast that many surrounding countries are looking for alternative means of travel in an effort to connect the Atlantic and Pacific oceans for a more practical and efficient delivery process.  As such, the fate of this historic engineering marvel remains affected by the weather.  When looking at the problem, we can clearly see we cannot control the weather and changing the construction of the canal itself would be cost prohibitive.  Therefore, the problem boils down to one single issue; insufficient fresh water levels of Lake Gatun to provide safe passage of ships.

The Facts

On January 1st, 2024 water levels in Lake Gatun were almost 6 feet lower than the prior January.  Consequently, insufficient water supply jeopardizes ship passage.  By reducing the number of passages through the canal, this helps conserve water, because huge amounts are used up every time a ship goes through the locks as it travels the 40 miles across Panama.  But that’s not all. Keep in mind that the lake also supplies drinking water to millions of residents in the central region of the country which includes Panama City and Colon.  The drought also presents tough choices for Panama’s leaders, who must balance the water needs of the canal with those of residents; over half of whom rely on the same sources of water that feed the canal.

Local and Global Economic Effects

Ship transits are currently limited to 24–26 per day being somewhat dependent on size. Under optimal conditions, it is speculated that 32–40 ships may transit depending on size and scheduling. The unreliability of transit through the canal has caused ships to reroute.  As the Panama Canal accounts for approximately 5% of global shipping, disruptions affect the entire worldwide supply chain.  The end result; more fuel usage, delayed shipments, and overall loss of productivity.

An Alternate Solution

The following information was reported in the New York Times on November 1, 2023 by Peter Eavis.  “In optimal terms, the canal can handle 38 transits per day, so 12 to 15 is a lot,” said Rodrigo Noriega, a lawyer and a columnist for Panama’s La Prensa newspaper.  Building the reservoir is expected to cost nearly $900 million, and the canal authority could start accepting bids from contractors toward the middle of next year with construction starting early in 2025.  But that timeline could well be delayed; the construction of larger locks was completed two years late, in 2016, and that project was marred by cost disputes.  The new reservoir would also involve acquiring land that is protected by a 2006 law, and displace at least some of its inhabitants.  Mr. Noriega said he expected Panama’s legislature to pass a law that would lift the ban on acquiring land. But he and others note that new water sources could also be built in other places.  Without a new water source, the canal could lose significant amounts of business.  Other ocean routes are, of course, longer and more expensive, but they are less likely to have unpredictable delays. One alternative is to transport goods between Asia and United States through the Suez Canal to the East Coast and Gulf Coast.  Another is to ship goods from Asia to the West Coast ports — and then transport them overland by train or truck.  “In theory, something that offers a cheaper, shorter route should always be in favor, but it’s the uncertainty that can be a killer,” said Chris Rogers, head of supply chain research at S& P Global Market Intelligence.

A Sustainable Solution for Everyone

The north end of the canal is the closest to the Atlantic Ocean where the Gatun locks are located.  The south end of these locks (on the freshwater side) stretches north to the Atlantic (the salt water side) approximately 2.0 km.  Returning to the premise that the primary issue remains there is inadequate freshwater available to fill the locks for maximum capacity, this proposal would be to build a desalination plant in this vicinity.  Based on recent Google Erath images, it appears there may be room for development given the appropriate authority and legal permissions in place.  As such, it could provide an inexhaustible supply of ocean water to the plant in order to process the sea water to match the existing lake water or rainwater, and then add the processed water to the existing freshwater infrastructure (Lake Gatun) with minimal impact on the environment.  Like all major industrial facilities, desalination plants can negatively impact local environments if not properly safeguarded.  Ensuring intake pipes don’t harm marine life, managing brine output, and reducing carbon footprints are top priorities for operators and regulators today.  Before proceeding, engineering would be required to address each of the aforementioned concerns.  So let us take a look at the development costs and the subsequent impact of the solution and the change in revenue for the great Republic of Panama for years to come.

Cost of Development Versus Revenue

Desalination significantly reduces the salinity to yield water with less than 500 ppm total dissolved solids. This fresh product water meets recognized standards for safe, reliable supplies. So where are the largest plants located in the world? Upon a Google search, the top global desalination plants, and the most effective desalination plants are in the Middle East and North Africa.  Most of the existing plants have had challenges associated with initial funding as well as the significant costs related to operations. Some concerns include available land for extensive facilities, reliable access to high-volume seawater sources, limited impact on sensitive marine environments, power grid connectivity, water transmission infrastructure to inland demands and of course, resources of a skilled technical workforce.  To address the financial consideration up-front, typically water supply to the community does not usually generate massive returns.  However, Panama is unique in that as soon as the volume of water rises to allow a single ship to pass through; significant income is generated to provide a substantial and predictable ROI.

What does it Cost to Build a Desalination Plant?

In an article posted on January 7, 2024 by Gunnar Herber entitled Plant Prices: The Costs of constructing a desalination plant and facility, Mr. Herber goes into much detail regarding the various nuances involved in the capital costs associated with building a desalination plant. Considering factors such as infrastructure acquisition, pipelines, proximity to source water, materials availability and costs, both technical and engineering expertise and more, estimating capital expenditures can be demanding and difficult. Therefore, it may be prudent to over-estimate the costs in this proposed solution as to not to run short of funds before completion.  Naturally, a major consideration would be to know the water volume output required as this would determine the size of the facility. Consider that each ship passing through the lock will require 500,000 gallons per transit.  Eleven ships (near maximum capacity) would require an additional 5.5 MGD (5,500,000 gallons per day).  When considering the additional freshwater needed to bring the canal to maximum capacity, it would be prudent to build a plant to produce 10 million gallons of water per day or a 10 MGD plant (as it is often expressed).  Again, it doesn’t hurt to over-estimate, as we want to be sure this is actually self-sustaining both in water volume and in ROI (cash flow).  Research suggests the estimated total capital cost for building reverse osmosis desalination plants varies in different parts of the world: However, specifically in North America — A 5 MGD plant would cost $12–18 million.  A 25 MGD plant estimate is $60–100 million.  Therefore, to be practical, based on these estimates, the capital cost of building a 10 MGD desalination plant in Panama would likely fall between $30–50 million. Therefore, on the outside, we will consider the $50 million estimate to be reasonable. 

When considering the cost of consultants and engineers, this number should be closer to $52 million.  Is this a good investment? Absolutely!  Within a matter of months, the initial capital outlay could be recovered as more ships transit the canal with ongoing cash flow for maintenance and overhead of the new facility.  Naturally, there are significant operating costs yet with the increase in revenue and the overarching benefit to the country; this would solve a major world-wide problem.  Let’s do the math…..Based on several different sources, it is estimated that the existing number of transits per day is limited to 24–26 vessels due to insufficient freshwater to fill the locks. Once desalination is in operation, the projected revenue is a game changer allowing for daily maximum capacity to return to approximately 37–38 ships depending on size. Ships are ready and waiting for transit, therefore ROI is almost immediate.  With the current average transit fee per vessel to be $150,000, 10 additional transits per day would result in projected additional daily revenue that could exceed $1,500,000 per day.  Bear in mind that this assumes that transit fees remain the same. If the average transit fee only increases $50,000, especially as ships continue to increase in size, this would increase annual revenue by another $200 million.

RESULT: Panama would have a long term solution which provides significant revenue while maintaining its leading position as a world-wide partner to shipping.

Why Might This Be the Best Solution?

• Use of existing land close to the lock and sea water supply
• Economically and environmentally sustainable
• Maintains the existing ecosystem
• Solves the core problem by replacing the lack of rainwater
• Ensures adequate drinking water reserves for central Panama
• Good for Panama and good for the world

Therefore, for the sake of Panama, its people and shipping throughout the world, one should consider the possibilities.  Naturally, there will be challenges but the biggest challenge has already be won — the finalization of an amazing canal and lock system.  Now it is time to take it to the next level.

_________________________________________________________________

Note from the Author:  If you have questions or just want to discuss the potential project, feel free to reach out to Dr. John Stagl directly at jfstagl@gmail.com

https://www.newsroompanama.com/news/panama-canal-solutions-by-dr-john-stagl

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The Panama Friendly Nations Visa is Still Available

Posted 26/04/2024

The following is a complete list of the requirements for a Friendly Nations Visa, provisional residency:

Main applicant:

• Valid passport for at least 6 months from application date
• Valid 2nd ID for at least 6 months from application date.
• 5 passport-size photos (2inch x 2inch)
• National criminal background certificate, recently issued, apostilled/authenticated by a Panamanian Consulate in the issuing country– valid for 6 months
• Economic Solvency: please choose one of the following -
• Option 2: Purchase real estate with a minimum value of USD 200K. Applicants can finance the acquisition of the real estate through a Panamanian Bank.
• Option 3: Invest at least USD 200K in a fixed deposit for 3 years at a Panamanian bank.

Dependent requirements:

If the main applicant is applying with dependents, the main applicant is required to present a Panamanian Bank reference letter showing a minimum balance of USD 5000.

Spouse (applying as a dependent):

• Valid passport for at least 6 months from application date
• 5 passport-size photos (2inch x 2inch)
• National criminal background certificate, recently issued, apostilled/authenticated by a Panamanian Consulate in the issuing country– valid for 6 months
• Marriage certificate – recently issued, apostilled/ authenticated by a Panamanian Consulate in the issuing country– valid for 6 months

Child (less than 18 years old):

• Valid passport for at least 6 months from application date
• 5 passport-size photos (2inch x 2inch)
• Birth certificate showing both parent's names – recently issued, apostilled/authenticated by a Panamanian Consulate in your country*– valid for 6 months

Child (18-25 years old):

• Valid passport for at least 6 months from application date
• 5 passport-size photos (2inch x 2inch) 
• National criminal background certificate recently issued, apostilled/ authenticated by a Panamanian Consulate in the issuing country– valid for 6 months
• Birth certificate showing both parent's names – recently issued, apostilled/authenticated by a Panamanian Consulate in the issuing country– valid for 6 months
• Certificate of singleness (or apostilled affidavit signed at a notary) recently issued, apostilled/ authenticated by a Panamanian Consulate in the issuing country– valid for 6 months
• Proof of full-time studies in university/college recently issued, apostilled/authenticated by a Panamanian Consulate in the issuing country– valid for 6 months
• List of academic credits, recently issued, apostilled/ authenticated by a Panamanian Consulate in the issuing country– valid for 6 months

Parent of the main applicant:

• Valid passport for at least 6 months from application date
• 5 passport-size photos (2inch x 2inch)
• National criminal background certificate recently issued, apostilled/ authenticated by a Panamanian Consulate in the issuing country– valid for 6 months
• Birth certificate of the main applicant showing both parent's names – recently issued, apostilled/ authenticated by a Panamanian Consulate in the issuing country– valid for 6 months

https://www.newsroompanama.com/news/the-panama-friendly-nations-visa-is-still-available

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Panamanian Reynaldo Pérez Palacios Arrested in Bogotá

 Posted 26/04/2024

He is known in the underworld with the alias “Rey”, he is Panamanian and his real name is Reynaldo Pérez Palacios. He was captured when he was in a hotel in Bogotá, Colombia, by the Technical Investigation Corps (CTI) of the Prosecutor's Office of that country, after being required by the Panamanian authorities for crimes related to money laundering and drug trafficking. Alias “Rey”, according to judicial authorities, is supposedly the leader of a drug trafficking network that sent cocaine to the United States and Europe.  The Colombian prosecutor's office reported that the Panamanian had at his disposal a structure that camouflaged cocaine in containers, cargo vehicles and planes that transported merchandise, to transport them from Panama to different destinations. 

 

It also emerged that “Rey” frequented Dubai and other countries to establish contacts for transnational cocaine trafficking and “supposedly” received money through international transfers that were triangulated to European and American banks, to finally reach the banking system of Panama.  The Colombian authorities detailed that this capture complements the work carried out by the Panamanian authorities, in the so-called 'Exodus' and 'Whale' operations, which allowed the capture of 51 people, the seizure of 10 firearms, ammunition, high-quality vehicles range and more than $140,000 in cash.  The capture of Pérez was achieved in a joint effort by the Colombian Prosecutor's Office and the Panamanian authorities.  According to Colombian authorities, alias “Rey” frequently went to Dubai and other European countries to make contacts and thus carry out cocaine trafficking and received international money transfers.

https://www.newsroompanama.com/news/panamanian-reynaldo-perez-palacios-arrested-in-bogota

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Supreme Court of Justice Olmedo Arrocha on Mulino

Posted 25/04/2024

You may have heard statements Thursday night on TV made by the judge of the Supreme Court of Justice (CSJ), Olmedo Arrocha, the person appointed to report on the proceedings of its meetings of the unconstitutionality lawsuit against the presidential candidacy of José Raúl Mulino.  Arrocha let it be known that the ruling of the Supreme Court could not be issued before the general elections on May 5 because documentation from the Electoral Court is needed but not available. 

He also mentioned that the president of the college can call extraordinary sessions when there are five magistrates available, which is not the case at the moment, because the majority of the Judges in Panama went on holidays at the same time.  Does that sound unusual to you?  It would appear that the Judges in Panama don’t want such involvement before the election.  If they rule to remove Mulino, the current front runner of the Presidential race before May 5, all hell could break loose in Panama and they would be blamed and at risk.  Instead the Judges can make a decision, well after the election, after they see how the vote went.

 “Judge Arrocha on the Mulino case: 'Five judges and the President of the Court can call an extraordinary plenary session'.”  As the reporting magistrate, Arrocha must prepare a draft ruling and present it to the Plenary Session of the Court's magistrates.  Arrocha also gave explanations about judicial times and took the opportunity to highlight that the Plenary Session of the Supreme Court can be convened in an ordinary and extraordinary manner at the request of five magistrates or by the president of the Court, María Eugenia López.

If José Raúl Mulino loses the election, the Judges can rule against him without any worries.  If Mulino wins the election, they can vote against him and take him out of office, but most likely they wouldn’t because, as former President of Panama Mireya Moscoso admitted the other day, she was in favor of José Raúl Mulino being able to participate in the May 5 elections and emphasized that it is the Panamanian people who appoint the presidents.  Thus insinuating that it is not a group of Judges who appoint the President of the country.  If you are a voter, vote for the candidate of your choice, whoever you believe will do the best job for Panama.  

https://www.newsroompanama.com/news/supreme-court-of-justice-olmedo-arrocha-on-mulino

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Panama Cobre Copper Mine by George Bauer - Comments Welcome

Posted 23/04/2024

The Cobre Panama Copper Mine To be, or not to be? by George Bauer

 

The impact of the shuttering of First Quantum’s Cobre Panama copper mine is the “elephant in the room” of the build-up to Panama’s impending, May 5, presidential election. Likely, whoever wins will then be faced with an apparently irremediable fiscal challenge, with little money in the bank, huge loans to service, high interest rates, voters calling for hand-outs promised when he was on the campaign trail, high unemployment etc. If the mine remains closed, then Panama will also be hit with paying “fair compensation” to First Quantum, the cost of closing the mine and remediating the site in an environmentally friendly manner, with no more money from the mine for government, employees, suppliers, contractors et al, difficulty financing large, government and private, projects, increasing unemployment etc. If the mine is not reopened, this could impoverish Panamanians during the next
presidential term and for generations to come.

 

Though indigenous artisanal mining of gold and copper in Panama dates back almost two thousand years, it was not until just after the Spanish conquest, when Columbus found gold in Veraguas in 1503, that Panama had its first “gold rush”. Mining was then almost continuous, with recent mines including the Santa Rosa Gold mine, near Santiago (ceased production in 1999, planned to re-open recently, but now shut-down by the November 2023 Supreme Court decision), Petaquilla Gold near Penonome (producing from 2009 to 2014, now closed), and First Quantum Minerals’ (“FQM”) Cobre Panama copper mine, in Colon Province, near Coclesito.

 

Q. When do you know that a banana republic is going down the tubes?
A. When there are no bananas in the supermarket.

 

The International Energy Agency, in its influential 2020 Report, “Net Zero 2050”, commented that for this to be achieved, the World would need to produce five times as much copper each year by this date. It typically takes some sixteen years between discovery and first copper production from a new mine. Mankind looks most unlikely to meet this target for production of copper, and other minerals critical for “going green”. Cobre Panama should be a small, but significant, contributor to “saving the planet”.

 

Only fourteen nations, out of 156 listed, have a less equal distribution of wealth and income (i.e. higher “GINI coefficient”) than Panama. For this to be corrected so as to improve the prospects of the vast majority of the Panamanian people, Panama needs more high-valued-added jobs, at different levels, which, realistically, can only come from export-oriented, high initial investment, projects, for which Panama has neither the skills nor the money to invest. Cobre Panama, and other mining prospects, offer just such opportunities to Panama and its citizens.

 

During the first “Presidential, Debate”, in early March, for the election to be held on 5th May, it was said that Panama’s unemployment rate, at 7%, was far too high. Assuming all the 40,000 previously employed, directly and indirectly, by Minera Panama are now unemployed, unemployment would now only be only 5% were they still working. No meaningful options to replace these jobs were tabled in this, or subsequent, presidential debates.

 

The copper deposit produced by FQM was first identified in 1968 by a United Nations Development Programme field survey, with some holes drilled in 1969 to support an estimate of the reserves. The project then passed through various hands, ending up with FQM in 2013. Following mine construction, at a cost of some 10 billion US, including a new port on the Caribbean, and a new road across the isthmus, copper concentrate production started in 2019.

The Cobre Panama mine, in the mountains, in Colon province, near Coclesito, can best be accessed via a drive northwards, of little more than one hour, from Penonome, which is located on the InterAmerican Highway. It is the largest new open pit copper mine in the World, employing, in mid- 2023, some ten thousand directly, and thirty thousand indirectly. Daily sales were approximately $10 million US, circa half of which remained in Panama as salaries, taxes, local purchases of goods and services.  In 2022 the mine was responsible for circa 1% of the World’s copper production, 5% of Panama’s GDP, 75% of Panama’s exports of physicals, 2% of Panama’s employment, and 40% of FQM’s global revenue, with employment by Cobre Panama being an aspiration for many Panamanians.

 

Some of the income from the mine was used by employees to buy, or build, new homes, buy new cars etc, with local contractors buying, for example, fleets of buses to transport FQM employees. Major new housing developments, shopping malls etc were also started, mainly funded by bank loans, in expectation that the flow of cash from the mine would continue, with FQM’s contract specifying a 20 – 40 year mine life. Some of these projects now appear to be “on hold”.

Anti-mining protestors took to the streets in late-2023, with identifiable groups of protestors including members of the construction workers union SUNTRACS, teachers, indigenous groups and students, none of whom would appear to have been impacted by Minera Panama’s operations, or likely to be in the future, except via increased government expenditure, on such things as education, pensions, medical care etc. Following months of popular protests, during which the InterAmerican Highway and major roads in Panama City were closed, vegetables rotted in the backs of trucks as they could not be transported from the producers to the city, no bananas in the supermarket, schools and businesses closed, many losing their employment, at a daily estimated cost of $200 million to the economy, and Cobre Panama workers counter-demonstrating to “Save Our Jobs”, it appeared, in November as though there were two options open for Panama. First was for the economy to continue to be partially closed-down, and for Minera Panama to restart copper production as usual. The second was for the government to impose closure on the mine, and for the rest of the economy to revert to business as usual. The Supreme Court judgement in late-November closed the mine, on the grounds that the contract under which it was operating was “unconstitutional”. However, that the demonstrators, and ultimately the government, favored “business as usual”, to keep the shops full, the schools, roads and ports open etc, should not necessarily be taken as evidence that “the people have spoken” in favour of mine closure per se.
With so much apparently at stake, would it not have been better to renegotiate FQM’s contract so as to conform with the constitution than close the mine?

It should be noted that though FQM’s contract terms allow the government to cancel FQM’s contract, these terms call for “fair compensation” to be paid in this event. Should this go to international arbitration, it will be likely be considered that it was primarily the government’s role to ensure that the contract abided by the Panamanian constitution and other Panamanian laws, and that this would impact on
any judgement and award of compensation.

There are, however, number of different reasons given for the mine being closed, in addition to it being “unconstitutional”.

First, the objections to environmental damage caused by the mine. However, more jungle is trashed in Darien every year, legally and illegally, than the mine will need in total. In Darien, typically the jungle is trashed, and the big tree trunks hauled away. At Minera Panama, the jungle is cleared and a five hundred metre deep pit is planned, to be dug out over a period of perhaps ten years, to take the copper out, delivering much more value and income for the collateral environmental damage. FQM have a plan, approved by the government, for refilling these pits, using tailings from the process plant and material from later pits, in anticipation of restoring the site. FQM have already cleared enough jungle to allow the first pit to be worked out, allowing a further maybe ten years of copper production with no more significant environmental damage. Closing the mine now, to limit environmental damage, would not appear to be cost-efficient.

Second, there has been a long-ongoing, and public, negotiation between FQM and the Panamanian government, as to how much tax FQM should pay, perhaps exacerbated by a less than “sensitive” approach by FQM and lack of experience and knowledge on the government side as to how such things are customarily analyzed by international mining companies. This has left the public with the impression, rightly or wrongly, that FQM are not paying enough. Third, it is said that pollution from the mine has caused an increase in cancer in children in Cocle. However, there is no evidence to support this assertion, and with the mine on the other side of the
mountains from Cocle, in Colon Province, it is unlikely that any run-off from the mine would have reached Cocle anyway.

Fourth, it is said that pollution from the mine is entering Lake Gatun, on the Panama Canal, thus polluting Panama City’s water supply. However, the Panama Canal Commission has said publically that no run-off from the mine is reaching the watershed of the Canal, as there are several river valleys crossing the potential route.

Fifth, this same argument negates the claim that the mine is “stealing” the Canal’s water. Sixth, various communities are complaining that FQM has promised them roads, school, clinics etc which have not been built. But, in reality, FQM is not in the business of committing to such works, which have likely been promised by government using income from the mine, but not yet delivered. Seventh, it is said that the vast majority of workers at the mine are foreigners, not Panamanians, which would be illegal. This is untrue, and likely based on observations by someone who has never been to the mine site.

Eighth, it has been claimed that the run-off from the mine is killing the fish in the rivers. However, an under-water camera survey in early-2023 showed healthy fish swimming in the river just down-stream of where the waste water entered it.
And there is more………..

Though such assertions have been voiced loudly and publicly, when these are shown to ignore the evidence, these assertions are never retracted, and the evidence almost never made public – so these assertions are still all out there.

It is understood that several groups appointed by the government, including international mining consultants, have been to the mine but have failed to find any “smoking guns” with respect to the environment or other issues discussed above. However, a delegation from Chile reported that it would take some twelve months to develop an environmentally-acceptable plan to abandon the mine, and maybe ten years to implement it – things for which the government has neither the, circa $1 billion, funding nor expertise.

SUNTRACS, the trades union for Panama’s construction workers, the most active of workers’ formal representatives in Panama, customarily in the van of almost any significant industrial action, such as demonstrations, strikes, road closures etc, organized demonstrations and strikes that delayed construction of the mine in 2016. Subsequently SUNTRACS were unsuccessful in their bid to represent the workforce during the mine operations phase, with FQM and their employees setting up UTRAMIPA, to represent the mine workers only. SUNTRACS, whose members were minimally impacted by the mine operation, were the most visible and effective organizers of the demonstrations, road closures, port closures, rail closures etc in late-2023, and were prominent in negotiations with government. It has been suggested that SUNTRACS, having been previously spurned by FQM and their employees, may be pursuing a vendetta against them. As foreseen at the time, mine closure has negatively impacted construction projects in Panama, with a resulting reduction in demand for the construction workers that constitute the majority of SUNTRACS’ members. Industrial action by one trades union, to put forty thousand others, many members of another trades union, out of work is unusual, to say the least!
Many Panamanians report that the principal driver of mine closure is the anger felt by the Panamanian people against the politicians whose corruption, and theft from the public purse, is perceived as having recently increased to a new, unacceptable and unsustainable, level. Though killing the goose because some of the golden eggs are being stolen may not be a logical response to this, this may well be what the people want.

FQM made almost all of its employees redundant in December, and the mine is currently not producing. However, the mine remains, with almost one thousand workers on site, for “care and maintenance”, and to monitor for and prevent any leaks to the environment etc, at cost of some $20 million per month. FQM are funding this, in the hope that they may be able to start production again some time after the May 5 th election.

Should the mine remain closed, then Panama will lose some forty thousand good, mainly unionized and tax-paying, jobs and five million dollars coming into Panama every day. Fitch has already reduced Panama’s credit rating to “Speculative” (“Currently highly vulnerable to non-payment, default has not yet occurred, but is expected to be a virtual certainty”). This has increased Panama’s cost of borrowing, and will make it much more difficult, and costly, for the government to borrow money, and for the government and commercial companies to finance new projects in Panama.

Though FQM have made it clear that they hope the mine will re-open, with FQM in charge, they have also made it clear that they will be seeking “Fair Compensation” if it does not. In December it was reported, quoting a lawyer with knowledge of such things, that fair compensation: would be “at least $50 billion”, a sum for which the Canal tolls would barely pay the interest on the capital sum, and equivalent to some $50 thousand for each household in Panama. FQM is reported to be already seeking $20 billion compensation under the Canada-Panama Free Trade Agreement, with proceedings in Miami. It is understood that this may be only one of the claims to be made, with the total nearer to $50 billion. Whether $20 billion, or $50 billion, equivalent to almost two thirds of Panama’s annual GDP, it is unlikely that Panama can readily pay such a sum, leading the government into unknown territory, possibly
resulting in the USA retaking control of the Canal, to keep it operating efficiently.

Reuters reported on 18 th April that “Panama election unlikely to shift Outcome for First Quantum’s Copper Mine”, mainly because none of the eight presidential candidates for the 5 th May election would openly support reopening the mine, such support being perceived as a “third rail” for anyone seeking election. Reuters also quoted the leader of SUNTRACS as saying that “There was no scenario under which they would let the authorities seal a new deal with First Quantum”.

However, once the new president occupies his office and “opens the books’, the combination of little money in the bank, huge loans, much increased during the current administration, higher interest payments due to downgrading of Panama’s credit rating, the likelihood of huge “fair compensation” payments being awarded against Panama, the cost of abandoning the mine in an environmentally- acceptable manner, newly-unemployed mine workers and others dependent on the mine wanting jobs, and many groups expecting the delivery of the costly goodies promised to them while he was on the election trail, may present a most unattractive, and likely apparently irremediable, prospect. And, of course, especially in Panama, it is no fun being president with no money to hand. This might lead him to consider, how, for example, an (international mining) company could be awarded a, perhaps ten year, contract for abandoning the mine, but allowed to produce and sell only enough copper to pay its own costs, with no income for the government. After a few years, when the teachers, pensioners et al have had no pay increases, new construction projects have dried up etc, and unemployment is at a new “high”, then there would likely be popular support for reverting to full mine production, to provide the government with funds to cover these, and other, costs and to get the economy expanding again. 

If this does not happen, then the resulting dearth of new investment in Panama, and the associated shortage of high-quality, export-oriented, employment opportunities, may impoverish generations of Panamanians.

 

Panama Wednesday April 24 of 2024
George Bauer is the pen name of a retired mining engineer, resident in Panama for over twenty years.

https://www.newsroompanama.com/news/panama-cobre-copper-mine-by-george-bauer-comments-welcome

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24 Year Old Israel Guerra Dies in a Marathon in Boquete

 Posted 23/04/2024

Israel Guerra, a Chirican model died Sunday April 21 2024 a month after his 24th birthday while participating in a marathon in Boquete, Chiriquí.  The model represented Chiriquí in the Mister Panamá contest and reached the top 10 when he participated in Caballero Universal 2021.  The catwalks of Panama are in mourning after learning of the death of the Chirican model Israel Guerra, known for representing his province in beauty contests.  “Our dear Israel Guerra who, like his last name, was always a great warrior in the face of life,” was the initial words through the Mister Panama Official Instagram account that announced the death of the young man.“We witnessed their sacrifices and efforts to get ahead (...). We join in the pain of his family, asking our Lord Jesus Christ to receive them in his arms and give them strength in these moments.  See you soon Israel...” the publication concluded.  Guerra managed to become Chiriquí's representative in Mister Panamá, reaching the Top 10 in Caballero Universal 2021. He leaves behind a daughter who currently lives in Boquete and according to those close to him, he always fought to see her happy.  The Mister Panama Organization, through its Instagram account, expressed its pain for the loss of Israel Guerra and described him as a warrior in life since his adolescence, witnessing his sacrifice to get ahead, completing his studies, having a home and giving a better quality of life for his family in Boquete.  “The pageant community joins in the pain of his family and loved ones and asks our Lord Jesus Christ to receive him in his arms,” the Mister Panama organization said in a statement. The funeral services were held Tuesday April 23 at 1pm at the San Juan Baptist Catholic Church In Bajo Boquete, for this outstanding model that made Panama stand out in the world of modeling.  To date, the model's cause of the heart attack is unknown. 

https://www.newsroompanama.com/news/24-year-old-israel-guerra-dies-in-a-marathon-in-boquete-1

This is something we've known about for a long time, but here is a full version of the story.
In Boquete mail to USA is collected at the Tuesday market every week and taken by volunteers who drop it in a mailbox or post office on arrival. This is usually limite4d to flat envelopes, but depending on the volunteer, small packages are often taken as well.

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The Panama Post Office Will Not Send Packages to the USA

Posted 22/04/2024

A friend sent me a WhatsApp today that said "Went to the post office to mail something to the USA and was told they have not been accepting mail to the USA since February!! They said it was an issue with the airline and they don’t know when it will be resolved. They can receive mail from the USA but not send. Do you have any info? There’s nothing on the Embassy website about this."

Let me tell you the short story.  The US Postal Service are paying their bills to Copa Airlines, so Panama is receiving air mail from the USA, but Copa refuses to send mail to the USA.  The Panama Postal Service, as a Government agency, is not paying their bills to Copa Airlines, so Copa is not sending any mail from Panama to the USA.

 

Here is the longer story. Let's take you back to the pandemic when things were shut down for three quarters of the year. The Panama Government has not paid Copa Airlines, in full, for all of the packages sent to the USA, Europe, wherever.  The Panama government was to negotiate 50 packages a month to be sent to the USA, and that was to include the entire country.  It is not a first come, first served arrangement. Most packages are still sitting in Panama City in who knows what condition.  This current Cortizo government administration has never made it a priority to get the mail system functioning again properly after covid.  So if you are having troubles with Panama Post, it will not work unless the new administration that is elected May 5, chooses to pay all of the back payments to Copa Airlines. Best to look at DHL or FedEx or any number of couriers located in Panama.  Perhaps Pigeon Post.........

https://www.newsroompanama.com/news/the-panama-post-office-will-not-send-packages-to-the-usa-1

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14 Million Dollars Seized from Organized Crime in Panama

Posted 21/04/2024

Several residences located in Costa del Este, Santa María, Marbella and Betania were subject to raids from the early hours of last Wednesday, April 17 as part of operation “Ballena”, carried out by Panamanian authorities to combat organized crime, specifically in their forms of money laundering and drug trafficking.

In three years of management, the Task Force against Money Laundering and Corruption of the Ministry of Security has seized over 14 million dollars from organized crime.  That could be quite the money maker for the Republic of Panama.  As a result of 26 operations carried out against money laundering and corruption, 192 people were captured and 14 million 648 thousand 514 dollars were confiscated, said the Minister of Public Security, Juan Manuel Pino. 

“Panama, whose territorial position is privileged, offers an extensive platform at the service of the growth of the world economy and international profitability, which makes us an attractive scenario for the actions of transnational organized crime,” acknowledged the head of Public Security.  The minister added that this team also responds to requests for assistance from police agencies in other countries, which, in a similar manner, fight against money laundering and transnational crime, following the recommendations of the Financial Action Task Force. 

This special unit is made up of the Money Laundering Division of the Judicial Investigation Directorate, the General Directorate of Revenue, the Financial Analysis Unit, the Public Ministry and the Superintendency of Banks of Panama (SBP), with the support of the FBI Federal Investigation Agency. The headquarters of this Task Force against Money Laundering and Corruption is located in Amador.  

https://www.newsroompanama.com/news/14-million-dollars-seized-from-organized-crime-in-panama

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51 Persons Apprehended for Drugs and Money Laundering

Posted 21/04/2024

Some 51 people were apprehended during the development of operations called “Exodus” and “Ballena”, which were carried out in the provinces of Panama, Colón, Panamá Oeste, Coclé, Herrera and Los Santos.  According to Panamanian authorities, the purpose of these operations was to dismantle two criminal groups allegedly dedicated to the commission of crimes such as international drug trafficking, and money laundering to the detriment of the state financial system.  “These two operations aim to dismantle two operational branches of the same criminal group led by a person who is under preventive detention,” said the Attorney General of the Nation, Javier Caraballo, during a press conference. 

As a result of operation “Exodus”, 33 people were arrested.  The First Drug Prosecutor's Office would have obtained information about two citizens nicknamed “El Paciero” and “Yunya”, who acted as the right hand of alias “La Letra” (who has been convicted and detained in the Punta Coco penal center since 2019) for the crimes of assembly and conspiracy and money laundering).  According to investigators, “El Paciero” and “Yunya” were the ones who managed the operational routes for shipping drugs to Europe and the United States. This criminal group, which includes aliases “Tuco”, “Yunya” and “Paciero”, was established in Spain and made trips through Europe and Dubai, establishing links in drug trafficking to coordinate the shipment of drugs in containers and by land to Costa Rica.  The group sent drugs on cargo planes from Panama and received them in different European ports, supported logistically by alias “Tuco”, who organized the entry of the drugs to the port terminals with the help of aliases “Don Gato” and alias “Negro”.It was reported that, as a result of the shipment of drugs to Europe, money payments were made through international transfers to the Panama banking system, sometimes using triangulations between European and American banks in order to naturally penetrate the financial system.  On the other hand, through operation “Ballena”, 18 people were arrested. The investigation of this case began after personnel from the National Aeronaval Service (SENAN) alerted about the existence of a group of people, national and foreign, dedicated to international drug trafficking and money laundering, led by alias “Rey”, who was apprehended on Wednesday, April 17, along with a woman in Colombia, a procedure that was achieved with the collaboration of the Prosecutor's Office of that country.  Investigations have determined that alias “Rey” is the operational arm of alias “Paciero”, who is one of the main coordinators from Dubai, where he carries out everything related to the purchase, shipping, distribution and payments of drugs, and where he also appears with the alias “Yunya”.

Through Operation Ballena, it was possible to determine the great economic power of this criminal group, which accumulated properties in the country, acquired businesses to give the appearance of legality to the money coming from drug trafficking, and had savings accounts, among others,” Caraballo pointed out. The criminal organization was also characterized by the use of encrypted or closed communication through emails, he added.  During the development of both operations, 55 search and search procedures were carried out, resulting in the seizure of 10 firearms, ammunition, high-end vehicles and more than 140 thousand dollars in cash. The arrested persons and the evidence were placed at the disposal of the judicial authorities for proper processing.

https://www.newsroompanama.com/news/51-persons-apprehended-for-drugs-and-money-laundering

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Martín Torrijos Presidential Promises

Posted 22/04/2024

Torrijos and his government plan: 350 thousand jobs and investments for $19 billion in infrastructure.  Two decades ago, Martín Torrijos arrived at the Palacio de las Garzas with 47.44% of the votes.  At that time, Torrijos ran for the Democratic Revolutionary Party (PRD) in alliance with the Popular Party.  After his administration (2004-2009), Torrijos stayed away from political life and had no desire to hold another public office.  It was not until March 2023, when he confirmed his aspirations for the most important kpopular election position in the country and warned that he would not run for the PRD.

At the beginning of this year he formally resigned from the PRD, the only group to which he had belonged all his life and the same one that his father Omar Torrijos founded.  “I have made the decision to break the last link that united me to the PRD... Today I resign from the PRD, led by Benicio Robinson and Raúl Pioneda, associated with Laurentino Cortizo and Gaby Carrizo,” Torrijos remarked in a video on his social network.  With Torrijos, his wife Vivian Fernández resigned, so did Rosario Turner, the former Minister of Health who is now his running mate.  Omar Torrijos' son is now running for the Popular Party with his government plan titled: Panama at Another Level.  Briefly, (maybe not so briefly) here is the Torrijos plan. 

-Generate 350 thousand formal jobs in the next five years. According to his government plan, he will do so with different programs such as “My First Job”, a formal program that would give young people without work experience the opportunity to work in state entities, mixed companies and private companies.  This program would last two years.

-Generate around 3,500 direct and indirect jobs during the first 100 days of government with the “Panama Without Gaps” plan.  If he reaches the Palacio de las Herons, he says that he will invest $100 million to rehabilitate streets and avenues nationwide.

-Create an alliance with the country's mayors for “Panamá Brilla”, a program focused on cleaning critical points in the country while stabilizing the waste management system. For this program, they intend to invest $50 million, which according to plan, would generate about 2,500 jobs.

-Invest $19 billion in more than 40 infrastructure projects in order to reactivate the economy and generate some 165 thousand jobs. These are some of the infrastructure projects that he mentions in his government plan: a tunnel between Chiriquí and Bocas del Toro, metro line 2A (Ricardo J. Alfaro to the Iglesia del Carmen), the San Miguelito cable car, at least 10 water reservoirs to supply areas not managed by the Canal, the Bocas del Toro Airport (with international flights), and the third runway of the Tocumen International Airport.

- Create the “Panamá se Capacita” plan, through the National Institute of Vocational Training and Training for Human Development (Inadeh) 4.0 platform.  If elected, his government will negotiate with companies interested in investing in Panama so that they commit to local hiring.  The Inadeh curricula will offer English, vocational careers and technical careers of up to 2 years. The State will finance these trainings.  Inadeh 4.0 would have a bank of tutors and mentors, as well as local and foreign internship opportunities, according to its plan.

-Create at least two new development poles similar to Panama Pacifico outside the Panama Canal area.

-Build assembly and light manufacturing free zones nationwide.

-Remove the subsidies granted to low-income families gradually, once the economic situation is on track. Subsidies for companies, according to their plan, would be evaluated individually.

-Convert the Panama Canal Authority (ACP) into the governing body of all port concessions and/or oil pipelines, gas pipelines, logistics corridors and any other future concessions.

-Build the 5G Panama-Border Highway, a high-speed interprovincial highway with tolls that will cover the province of Panama to the border of Chiriquí. This highway, according to its government plan, will be designed for agribusiness, tourism, and the transportation of people at a lower cost for private companies and other Panamanians. It also proposes an exclusive highway for cargo between Panama and Colón. This 5G highway would be interconnected with provincial highways (Darién, Veraguas, Coclé, Azuero, Colón and Panamá Oeste).

-Build logistics corridors to facilitate the transportation of merchandise. Among those holding promise are: the Northern Corridor to the Tocumen Airport, the Southern Corridor to Pacora, the Northern Corridor to the port of Balboa, and the Panama Pacific route to the Port of PSA, Puente Centenario, Panama Cargo Highway Colon.  He also promises to build the Fourth Bridge over the Canal.

- Agrees with the ACP that Río Indio is the most viable alternative to obtain water, both for human consumption and for the operation of the Canal.

-Create the National Water and Sanitation Corporation that will have among its responsibilities to manage the basins not managed by the ACP and consolidate all institutions related to water (Idaan, Panama Sanitation Company, the Directorate of Drinking Water and Sanitation of the Ministry of Health, the National Council for Sustainable Development and the National Water Council, among others).

-Generate master plans for the expansion of water and sanitation coverage, prioritizing the maintenance and rehabilitation of existing infrastructure, and service in rural areas of the country.

-Develop new infrastructure, in addition to rehabilitating existing ones to expand drinking water and sewage coverage services. It suggests developing a plan to eliminate the use of latrines nationwide.

-Ensure that energy distribution companies comply with the investments to which they committed, accounting for public lighting, the number of blackouts and the quality of service.

-Measure energy distributors based on the quality of service as a key element of their income.

-That the only requirement for the installation of residential solar panels will be that they be installed by a certified installer. Companies must connect the service in a period of no more than 15 days.

-Evaluate the electrical interconnection with neighboring countries to achieve agreements that allow lowering the cost of energy.

-Install a monitoring center that reflects in real time any event that interrupts or affects the provision of the service. This, according to its plan, will allow ASEP to identify system failures in real time, ensure and demand compliance with the service, and sanction as necessary. This monitoring center would operate 24/7.

-Increase lighting coverage throughout the country, requiring distribution companies to comply with their lighting commitment. These luminaires must be LED or solar light.

-Identify free land near metro stations where passengers can board and disembark. This would be coordinated with taxi drivers and people who have their own car. After this analysis, he proposes talking to the owners of these lands for their acquisition.

-Reopen the Metrobus concession. The company that wins this concession will be responsible for renewing and maintaining the fleet.

-Restructure the operation of Metrobus routes, complying with schedules and itineraries according to demand.

-Implement tiered rates, discounts for vulnerable groups and electronic payment options.

-The country requires reforms to the Constitution.  His plan anticipates that the reforms would be focused on the three organizations of the State, and research and control institutions, such as the Comptroller General of the Republic and the Public Ministry.

-I would try to pass these constitutional reforms through the new National Assembly. If this route is not possible, I would carry out reforms through a parallel constituent.

Education

-Review the curricular contents offered at the different levels of the educational system.

-Give incentives to students who live in hard-to-reach areas for regular attendance at classes in order to reduce school dropouts.

-Manage economic resources so that all rural and hard-to-access educational centers, no later than the year 2027, have electricity and internet access.

- That by 2029, the 15 thousand teachers who are currently in the system are trained and certified in new skills. This includes everyone being bilingual and fluent in subjects such as mathematics, Spanish, natural and social sciences.

- Progressively convert all schools in the country into bilingual classrooms.

-Create the Medicines Supply Agency, an entity that will be in charge of the purchase and distribution of medicines, supplies and equipment.

-Create the National Medicines Observatory, a digital platform that will determine the reference prices of public health entities to lower the cost of medicines.

-Build a new National Oncology Institute in Panama City.

-Guarantee that hospital directors are appointed by competition, outside of politics.

- Convene a dialogue table in the first hundred days to reform the pension system. You will have a period of 6 months to reach an agreement, given the urgency of solving this problem.

-Evaluate the affordability of payment of contributions for informal workers with low contributory capacity. It also proposes moving forward with a universal old-age pension, within a framework of fiscal sustainability. According to the International Labor Organization (ILO), this measure would cost around 1-1.2% of GDP.

Citizen security

-Double the number of police officers on the streets in the first four months.

-Implement border control to prevent people with criminal records from entering.

Solid waste management

-Close the Cerro Patacón landfill and, in its replacement, create a sanitary landfill that would be located in a suitable site, where the use and disposal of solid waste (clean energy, biofuels, among others) takes place.

-Invite an international tender for the new sanitary landfill. He estimates it will take about 4 years to get it up and running.

https://www.newsroompanama.com/news/martin-torrijos-presidential-promises

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Panama Customs is Going Digital

Posted 21/04/2024

Panama Customs is saying goodbye to paper: travelers will be able to fill out the affidavit digitally.  This April, Customs began implementing a pilot plan for travelers arriving in Panama to digitally fill out the affidavit, after multiple complaints and suggestions for the institution to abandon the “obsolete” process of filling out the paper form.  At the Tocumen International Airport, for example, travelers arriving in the country can fill out this form digitally or on paper, with the help and guidance of officials.  In the terminal, they have placed instructions and the respective QR code for the user to download.  Customs reported that they have been meeting with representatives of the different airlines that provide the service at the airport to coordinate the “work schedule with a view to the implementation of the digital traveler affidavit.”  For the time being in the month of April, Customs will be developing training for the staff that take care of travelers in the terminal, as to the use of the digital application.  “During this period, a pilot plan will also be applied that will allow both staff and travelers to measure the effectiveness of this system, whose primary objective is to provide greater facilitation and improvements in the service provided by the Republic of Panama during entry into the country.”  Each traveler arriving in Panama must declare the contents carried in their luggage.  According to Customs, the traveler may bring duty-free goods in their suitcase for their family's use, as long as they are not for commercial purposes. If the traveler brings in more than $10 thousand cash, it must be declared.

https://www.newsroompanama.com/news/panama-customs-is-going-digital

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Panama Bank Loans Will be Easier to Access

Posted 21/04/2024

The Banking Association of Panama hired the services of a consulting firm, which will help provide ideas to facilitate access to credit.  Carlos Berguido, its president, acknowledged this week that they have not done enough to boost loan flows to small and medium-sized businesses.  "We hired a consultancy, with a very well-known firm, to give the banks an idea on how to facilitate credit analysis so that the client who is a small and medium-sized company can access loans more easily and without so many requirements," he told Newsroom Panama.  The association has already received the results and is in the process of analysis. The intention of the banking sector is to take some of these conclusions to develop programs over the next few years to serve these entrepreneurs.  Regarding the possible future loss of investment grade and its impact on credit, Berguido stressed that it will continue to be easy to access products, although perhaps the complications are accentuated in the most vulnerable sectors.

https://www.newsroompanama.com/news/panama-bank-loans-will-be-easier-to-access-1

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Rómulo Roux Tours Chiriquí

Posted 21/04/2024

Roux once again shows his muscle in Chiriquí, which will receive an Agricultural Packaging Center if he is elected. Roux toured the San José neighborhood in the Pedregal district of David, along with thousands of supporters.  Once again, the Chirican people “strongly” supported the candidacy of Rómulo Roux of the alliance of the Democratic Change and Panameñista parties, who on Saturday visited the center of David, making known his “Change” proposals, in which the construction of Silos, the Agricultural Packaging Center and the Green Convention Center in Boquete stand out.  Roux toured the San José neighborhood in the Pedregal district in David, along with thousands of supporters convinced that on May 5 in the general elections, the alliance “For a better Panama, Good things come”, has assured victory.  ”The province of Chiriquí is very important in our government mechanism, that is why the change comes with a Specialty Hospital Complex here in David, with complete oncological care, our cancer patients will no longer have to go to the city to receive their treatments. These complexes will have hemodialysis rooms, supplies and specialists,” said Roux.  Another of the proposals that Roux promotes is to promote the Genetic improvement of the National Livestock and the construction of the David Technical Training Institute.

https://www.newsroompanama.com/news/romulo-roux-tours-chiriqui

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RDU Flights Start June to Panama City on Copa Airlines

Posted 20/04/2024

This summer, planes will be taking off from RDU (Raleigh Durham International Airport) and land in Panama City at Tocumen.  On Friday, the head of Copa Airlines talked to Raleigh business leaders about how they’ll make that happen.  Copa will become RDU’s 18th airline, and Panama City will be its 10th international destination when service begins in June.  The airline will begin making direct flights to Panama City on June 21. Travelers can make the trip to Panama City on Mondays, Wednesdays, Fridays and Sundays.  At just under 4 hours, this new direct flight makes Paris even more accessible for travelers in our region. "And when there's direct connectivity, people fly, people visit. People do business," Pedro Heilbron, Copa Airlines CEO said.  And those connected with the airport say, Panama has plenty to offer in return.  "We're excited about the connectivity because of our ag business here in North Carolina. They can sell their products and services," Michael Landguth, RDU President/CEO said.  This announcement is another in a series of new flights from the airport. Direct flights to Germany and Mexico are also coming to RDU in June and July.  This is the latest airline to contribute to RDU's expansion. In 2024, the airport saw a record breaking number of spring break travelers – 1.2 million. That’s almost a 7% increase from this past March.

https://www.newsroompanama.com/news/rdu-flights-start-june-to-panama-city-on-copa-airlines

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The Panama Papers Trial Ended Friday

Posted 19/04/2024

The trial known as the Panama Papers case is over with 29 people being tried for the crime of money laundering via the creation of offshore companies purchased through the now defunct Mossack Fonseca (M&F) legal firm.  The Panama Papers trial concluded Friday and included 85 hours of court session, 27 witnesses were heard from, and 50 sets of documentary evidence produced.  Stay tuned for the results. 

https://www.newsroompanama.com/news/the-panama-papers-trial-ended-friday