This year we had the opportunity to be part of the International Committee of the Expo-Inmobiliaria 2014 (annual event that brings together companies of Real Estate and Property Development in Panama) in this case, we received realtors from all parts of the American continent and showed them a few projects during their stay in Panama for the fair– amongst all the adventures we had together, visiting the Panama Canal was definitely an experience we would never forget. We actually drove through the Panama Canal – which is something that once the canal is completed will never happen again for next hundred years.
A communications specialist of the Panama Canal called Luis Ferreira received us in a great manner and explained in detail the current status of the project (at least what he was allowed to say) since apparently it is going through a bit of a crisis with its contracts and deadlines because of the “increase of costs” for the completion of the project.
The company in charge of the project, Grupo Unidos por el Canal (GUPC), lead by the Spanish company Sacyr and the Italian Salini-Impreglio, demands the Authority of the Canal to recognize extra costs of 1.6 billion dollars to continue the project.
Because of this the Authority of the Panama Canal (ACP) warns that they will take necessary steps to ensure that the project be done by 2015, even if this means cancelling the current contracts. The administrator of the ACP, Jorge Luis Quijano informed this Tuesday that negotiations with GUPC remain distant, and therefore there is no idea when the project will continue full blast – it has been paralyzed since February 5th.
According to Trade Union sources, as of beginning of February there were between 3,000 to 3,500 workers in the project whereas before the “crisis” there were approximately 10,000 workers.
Lots of unemployed people – none operating machines, and time is being wasted while decisions are being made as of what will happen now with the Panama Canal.
We are definitely sure that the first and most important impact of this “crisis” will be of tax revenue character since the Panama Canal’s completion will take longer and the benefits of it will be postponed.
The Panama Canal earns around $960 million dollars, which is around 10% of total tax revenue. It is estimated that the expansion will represent an additional income of $300 million dollars in the first year, $400 million on the second, and $2 billion dollars on the third year.
The United States has a lot of interest for the completion of the Panama Canal. They do not want to have stalled installations waiting to go through…
Interestingly 5% of the Worlds Commerce goes through the Panama Canal and its main clients are the United States and China.
Amongst this awesome group, we had the pleasure of sharing thoughts and visions with these fine people: Carla Rayman (Certified International Property Specialist/Instructor), Mike McGrew (Vice Chairman of the Economic Development Corporation of Lawrence and Douglas County), Al mansell (2005 president of the National Association of Realtors), Flavio Gorzola (President of the International Real Estate Federation), Jose Boyd (former President Real Estate Agents Association of Panama), Marieta Toro Sales (Consultant Manager of the Trump Ocean Club), and Denise Kardonski (Business Director of NAI Panama).
We will be visiting the Panama Canal again once negotiations are done and the project is up and running as it should be.
Anyone interested in joining the next group can contact us here.
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