Panama Investor Blog

And the good news is....

I have been trying to get back into the writing  groove, but after being away from my various business operations for almost two weeks, there is just a lot to catch up on.  I want to start off with some good news and that would be that the Boquete fair is back on track and there are lots of visitors. The local business owners came together with the mayors office to rebuild and clean up the entire fairgrounds within two weeks. Many of the business owners took a section of the fair and cleaned it up and replanted flowers and painted buildings at their own expense. If you had seen it right after the flood you would not believe it possible. The mud was two feet think in the buildings and all of the flowers were destroyed. I was at the fair the other night and it looks even better than past years with the new paint on the buildings. The President of Panama, governor of Chiriqui and mayor of Boquete were all on hand last Thursday for the Fair inauguration and several thousand people showed up for the various speeches and ribbon cutting ceremony over the new bridge.

I want to thank all the folks in Boquete for their heroic effort to save the fair. A call to action by the tourism business owners of Boquete made an obvious difference in the number of people coming for the event. They came together and put both financial resources and individual efforts to market the town on the radio, TV and news papers. Although December was a rather slow month for tourism due to all the negative press about the flood, January appears to be on track and may exceed last years numbers. It goes to show that disasters can sometimes bring out the best in a community and in this case, the Boquetenos and business owners stepped rapidly up to the plate to make it happen.

Boquete businesses get together to save the community

The newly formed Boquete Business Association met this Friday to discuss the flood and to implement some much needed damage control of a different kind. All of the negative press about the floods in the  Panama highlands have begun to affect all of our businesses. Most people who do not live in Boquete believe wrongly that we have been "wiped off the map" by the recent flooding. Airlines and travel agencies have been advising travelers not to come here and we are starting to receive cancellations for hotel rooms in an otherwise busy season.  We tourism business owners directly employ over 500 local Panamanians  who depend on tourism to pay their bills and feed their families. We thought it a good idea to get some factual information out that more accurately describes the situation and its real affect on the community. Here is a press release we have developed. Please feel free to send this to others who may have an interest. A Spanish version follows.

What’s Up in Boquete?
It’s business as usual in Boquete as the town puts the spotlight
where it belongs: on its beauty and its people

BOQUETE, PANAMA: Boquete was in the spotlight this past week, not for its natural beauty, award-winning coffee and friendly people, but because of the damage caused by the Caldera River. The dramatic footage and photos don’t tell the whole story: Bouquet didn’t experience long-term flooding. The river grew quickly during a short period of time and affected some structures in its immediate vicinity. The fact is, the majority of Boquete, including the downtown, roads, tours and activity businesses and most restaurants and hotels, were untouched.  The people of Boquete and the business community have come together to invite the public to experience Boquete today.  

“It is business as usual in Boquete,” says Charlie Collins, Owner and Executive Chef, Panamonte Inn and Spa. “Of course, it has been a difficult week for the people of Boquete and our hearts go out to the families affected. My family has been in Boquete for three generations and some things never change: the things that Boquete has always been known for—its natural beauty, relaxing environment, fresh air, friendly people and welcoming spirit—were 100% unaffected.”

Earlier in the week, media, websites and blogs were reporting on the situation in Boquete. But the photos and footage was limited to a very small section of Boquete, the rest of the town was untouched. 

“Everybody saw the photos and footage, but it’s important to remember: the story didn’t stop there,” continues Chef Collins. “The Boquete community rallied together to help the people in the areas affected by the river. The speed at which those vulnerable points were fixed was truly amazing. It speaks volumes about the character and spirit of the people in Boquete.” 

‘What’s up in Boquete?’

o    Airport service to David and the main road connecting David to Boquete was unaffected
o    All the main roads and the downtown were untouched
o    Traditional Boquete activities Panamanians have always enjoyed—visiting gardens like Mi Jardin es Su Jardin and El Explorador, stopping for strawberry drinks, enjoying coffee, sharing the beauty with family and loved ones—never stopped
o    Great restaurants and hotels are open for business
o    All the exciting outdoor activities Boquete is known for are still available: hiking, rafting, ziplining, rock-climbing, horseback riding, bird-watching, hot springs and coffee tours

“All of the traditional activities that Panamanian families have enjoyed over the years never stopped,” says Lissette Ameglio, Fresas Café. “The gardens of Mi Jardin es Su Jardin and El Explorador. Stopping for a delicious strawberry batido. Enjoying a fresh brewed cup of coffee. Relaxing with your family. Boquete is the perfect place to do this. Now the sun is out and we want people to experience the beauty of our special town today.”

For more information about what is happening in Boquete, please visit www.boqueteweather.com/flood.htm and Experience Boquete Today! 
For more information, please call: Jessica Real, 6-615-2965

Boquete flood update with photos

Wednesday we saw the sun for the first time in about a week. Some brave golfers were out on the course trying to get in some much overdue practice. The schools open again tomorrow and we will once again be getting up at 5:30am to get the boys off for their last week of school before summer vacation. Although things appear to be getting back to normal in Boquete, what we hear about Bocas Del Toro to Colon on the Caribbean side of the mountain range is not good. The only road across the mountain range has been shut down now for days and the bridge at Sixola to Costa Rica is out. The only access is by air or sea and the storm is making it extremely difficult for either of these options. They are apparently without full electric and what they do have is dependent on diesel which is in short supply. Food must be running low without the regular trucks from David that deliver to the hundreds of small supers scattered around the area. The storm seems to be hitting them especially hard with high tides and flooding on several islands as well as the flat lands along the coast. The area just on the Caribbean side of the mountain range from Boquete has been getting most of the rain and flooding has displaced many people there. As usual it is the indigenous people who suffer the most. Our hearts and help go out to all who are still suffering this disaster.

I have read several articles about our area of Boquete that have greatly exaggerated the damage and number of those left homeless. The many calls and emails I receive are from concerned folks who believe that Boquete must be washed away to the sea. I was at the school shelter last night and there were 114 people not the thousands I have seen reported. The number of homes washed away are in the several dozen and not hundreds and they were all right next to the river. The head of the Ministry of public works (Ben Colamarco) was here today and was assessing the damage and directing the heavy equipment that had already begun work in the river to get it back into its regular channel. The town of Boquete was spared except for a few homes that were right along the river edge to the north of the new bridge. That bridge is in fine condition and I crossed it today.

 The real damage was on the east side of the river where it ran through the fair grounds.  I was surprised to see homes on that side still standing and people living in them. A few small fair building's were taken by the river, but most were still standing. The mayor says there will still be a fair in January as is customary for Boquete.

The new Ladera hotel is on that east side and is severely damaged around the foundation. I don't know if it can be saved or not. There is about 300 meters of road that was destroyed in front of the hotel that needs to be rebuilt quickly in order to access three small hotels and the many residents on that side of the river (Jaramillo). Further down the road the Palo Alto restaurant was pretty much destroyed and the 6 room B&B owned by the Collins was also damaged. There was no damage to the Paradise garden inn, the Boquete garden inn, Oasis near the fair grounds and Hotel Los Establos. I visited all of them today and they are just needing easy access. The bridge in Los Naranjos is now open so everyone is able to get to town easily.

 I would imagine that within a week or so things will quickly get back to normal and most signs of the flood will be confined to the bridges and roads in some areas. Lets pray for those in Bocas del Toro, Cera Punta, Colon  and other affected areas that have not been nearly so lucky.

You can see the latest photos by clicking here.

Boquete's 30 year flood

It has been drizzling in Valle Escondido for 5 solid days and raining hard above us on the continental divide for almost a week. Today we received a call from the civil protection agnecy (Sinaproc) asking for help with food and blankets for the many people who have been displaced by flooding. I grabbed my camera and my youngest son  and we headed out of the valley to see just how bad things have gotten. The Que Brada Grande that runs through our valley was only about 6 inches above normal, but 2 minutes latter as I reached the Caldera river that runs right through the center of Boquete, it was a roaring brown mass of water, mud and boulders. I headed up to the Panamonte Hotel to see if the river had reached the road way of the bridge and found there was no bridge. We went to the Church in town where my son goes to school and looked out the back to see the fair grounds on the other side of the river under water and the many buildings being swept down the river. We headed further into town to find the civil patrol office near the bridge that crosses to the fairgrounds with a large crowd gathered in the rain, looking toward the bridge. The bridge was blocked by trucks and police to keep people from getting on it. We drove further down the road through town to find the river was now above the road. Cars had stopped and an American told me his apartment was on the other side and under water.
Next stop was the visitors center above town. There must have been a hundred cars there as everyone wanted to see the river and the town from there. The river had swollen to two or three times it normal size and was inundating the entire area.
It was already dark so we headed back home and we went to bed wondering just how bad this was going to get. When I awoke about 6 am I headed right out with my camera to get an assessment of the damage. Rather than more written details I will let these photos speak for themselves. A number of people have lost their homes or businesses from this disaster. We are thankful that there has been no reports of deaths or injuries in Boquete.
You can go here to see the satellite weather map on Lloyd Cripe's Weather website which shows a stalled low pressure area directly over Panama and most of Central America along with some photos people have sent in to him of the flood damage. You can go here to see the photo album to see my photos of the damage to the Boquete area.

Boquete road project spurs conflict

The road between Boquete and David is starting to deteriorate rapidly as construction traffic takes its heavy toll. Repairs of pot holes have been spotty due to the shortage of asphalt in the country. A plan has been touted for several years to increase the road from two lanes to four and several meetings  have been held by various officials claiming that the project was funded and would begin in 2008.

Apparently the problem has been with road easements and private property owners along the roadway.
The ministry of public works has come out with statements that it looks unlikely that the road will be started in the next year as a change of administration is taking place in 2009. Historically this puts a stop to any projects that have not been started and the process for justification will have to start again.

In my opinion, it would be adequate to build passing lanes at various areas to allow faster traffic to pass the always slow construction traffic. The cost of this approach would be a fraction of the projected cost of the entire 4 lane and would allow the problem areas to not be affected.

La Prensa article.

First family buys big stake in Boquete’s future

A project on this particular property has been rumored  for several years and I reported on a group who claimed to have bought it and were looking to sub develop back in February 2007. According to this article, the father of the wife of the president is planning a large residential development for the property. He is quoted in the piece stating;  “I'm very proud of the estate,” he said, explaining that the partnership would sell all but two of the lots within the 900-hectare property. “We’ll make a huge real estate development that will be launched by year's end.” The master plan of the project includes several luxury residence complexes, a 10-hectare shopping mall, hotels, and an international university specializing in environmental studies.

I would think a 10 hectare shopping mall is a bit ambitious for this small area, but who knows, maybe there is a market I am not aware of. I do like the idea of the international environmental university. The property is very beautiful and this project may be a great addition to the many projects in the area if it is environmentally conscience and done well.

From La Presna

First family buys big stake in Boquete’s future

Carlos Lemos/LA PRENSA

big sale: Tony Fergo, father of Panamanian First Lady Vivian Fernández de Torrijos, claims the funds to purchase and develop a $5 million property in Boquete are his and those of his business partners. 1065701

Boquete’s cool mountain air and virgin nature is no longer what draws the crowds to the small, fog-cloaked town at the base of Volcán Baru. It’s the real estate. And the chance to rub elbows with the rich and famous snatching up property in the once sleepy hideaway in the Chiriquí highlands. Popular as a retirement location for North Americans, the real estate boom that hit the area a few years ago hasn’t showed signs of letting up. With all the fanfare, it’s no surprise that Panama’s ruling class are cashing in.

Boquete’s last high-profile sale involved a 900-hectare estate that had been in Juan Rodríguez Jiménez’s family for generations. The property, known as “Las Huacas,” boasts rivers, creeks and lush rolling hills, and lies just 10 minutes from the village of Alto Boquete. It’s sticker price: $5 million.

Who bought it? Antonio Fernández, the advertising entrepreneur and father of Panamanian first lady Vivian Fernández de Torrijos, who goes by the name Tony Fergo. Public records show that Fergo received a $3.5 million loan from the Global Bank Corporation on December 28, 2006, a sum on which he opted to make monthly payments of $50,000. The remaining $1.5 million Fergo paid for in cash.

According to the Registro Público, the sale was purchased under the name of Desarrollo de Boquete, S.A., a company owned by Fergo, his wife Hilda, his son Marco Fernández and son-in-law Enrique Bello Rohrmoser. Fergo’s ostensible plan is to develop a exclusive community there for elite clientele.

Since June 2007, however, Fergo has been paying regularly on the Global Bank loan and re-leasing portions of the mortgaged property. First, Fergo leased 175 hectares and then another 65, with the plots being registered under companies in which Fergo or his family members are shareholders.

One of those companies, Hatoasis, S.A., named first lady Vivian Fernández as director and treasurer until as late as April 10, 2007. And to expedite the real estate deal, Fergo recruited three partners who don’t figure as corporate owners of the property. Among those are former ministro de la Presidencia Ubaldino Real, businessman Félix Maduro and lawyer Alejandro Watson.

Fergo himself confirmed the partnership in an interview with La Prensa. “I'm very proud of the estate,” he said, explaining that the partnership would sell all but two of the lots within the 900-hectare property. “We’ll make a huge real estate development that will be launched by year's end.”

The master plan of the project includes several luxury residence complexes, a 10-hectare shopping mall, hotels, and an international university specializing in environmental studies.

While building has not yet begun, Fergo’s company Desarrollo de Boquete, S.A. last May presented the Autoridad Nacional del Ambiente with a proposal to cut a road through the property. The proposed two-kilometer road will cost $13 million.

Fergo defended the legitimacy of the financial support for the project. “All the money is mine and the partners who came after," he said.

Boquete mayor says no to all hydros

It seems the mayor of Boquete is under a lot of pressure of late with developers, land owners and the public alike. Highland land owners see the new  regulations halting projects above 1200 meters above sea level as dramatically lowering their property values. Environmental groups hail this as a way to protect the fragile environment of the area. Now they are going after the many hydroelectric projects being proposed on the Caldera river that runs through town. Many believe the changing flow of the river could be dangerous or change the ecology of the river. The mayor is now calling for all hydro's to be stopped.
Although I agree that care needs to be taken to be sensitive to the environment, I believe it is a mistake to say that no projects will be allowed. Some projects would go unnoticed by anyone but the most careful observer and provide a much needed source of clean energy. The laws are in place to protect the environment and allow for sustainable energy projects. Each should be looked at as an individual project rather than a blanket no vote for hydro electrics.

Mayor wants hydro projects put on hold

Boquete Mayor Manolo Ruiz has pledged to fight against hydro projects in his district, particularly on the Río Caldera, where nine such projects have been proposed. Ruiz said he will not sign off on any hydro agreement, “regardless of who it comes from.” He has also asked the Asamblea Nacional to draft a law protecting Boquete's rivers.

Ruiz argues that the district is already producing its fair share of hydroelectric power for the country, and that further development in this area would compromise the area's natural resources. Yesterday, a group of environmentalists attended a municipal meeting in Boquete and asked Ruiz to declare the Río Caldera a national heritage site.

The president of the Asociación para la Conservación de la Biosfera, Ezequiel Miranda, said the group is seeking the designation because of the river's importance to the local water supply and agriculture.

Miranda said that because the river originates in Parque Internacional La Amistad, it should receive the same protection offered to that biosphere.

Valle Escondido gets a surprise visit by hords of government agencies

An article appeared in today's La Presna about Valle Escondido and an inspection by various government agencies with the headline "Homes threatened by Landslides in Chiriqui". It really screwed up my Saturday morning golf game when at least a dozen vehicles full of government officials swarmed over Valle Escondido. I was just teeing off on the fifth hole and my one under par quickly turned into one of my most disastrous rounds. Rarely are a visit  by civil protection, environmental impact, public health, public works, housing and  commercial and industrial pleasant, much less when they all descend on you at one time. They brought copies of our environmental impact applications and various permits and reports and checked every nook and cranny for non compliance issues. Fortunately after a 3-4 hours of poking around they left us with a clean bill of health.

The article fails to mention that the request for the inspection came from our own Homeowners association and that the result of the inspection was that the Ministry of public works had built a road above the valley which caused water to drain improperly into our project. Near the end of the article they make mention of the public works drainage being an issue, but neglected to mention in the that it's the fault of someone outside Valle Escondido.

Homes threatened by Landslides in Chiriqui

Landslides near two homes in the Valle Escondido project in Chiriquí have prompted a review by government officials.

The landslides appear to have been caused by stormwater which is not properly draining. The area was examined by representatives from the Sistema Nacional de Protección Civil (Sinaproc), the Autoridad Nacional del Ambiente (Anam) and municipal engineers from Boquete. Also on hand were officials from the ministries of Salud, Obras Públicas, Comercio e Industrias and Vivienda, as well as the project's promoter.

Sinaproc Regional Director Armando Palacios said that authorities will meet with neighbors to find a solution to the problem. “We are awaiting a report by Obras Públicas to know the real cause of the landslides,” he said, adding that improper drainage appeared to be the cause. The administrative manager of the project, Ana Lía Velásquez, concurred with the assessment and said steps will be taken to ensure the problem is addressed.

Spanish version follows

New trail from Boquete through National Park

Well, here is some interesting news about Boquete in La Prensa that I was not aware of. Always the last to know, but willing to share when the news is relevant to my interests. Lets go for a hike!

The 14-kilometer trail winds through sections of Chiriquí´s majestic Parque Internacional La Amistad.

Environmentalists have inaugurated a new, 14-kilometer trail through the Lagunas Perdidas de Boquete, in the hope that more Panamanians and tourists alike will come to appreciate the area and want to care for it.

The trail, which winds through a section of Chiriquí´s majestic Parque Internacional La Amistad, starts at Cerro El Pianista, and passes through the Ngöbe-Bugle community of Horqueta and Bajo Mono before ending at the Lagunas Perdidas, so-called for their "hidden" location at the base of the Salamanca mountain range.

The trek takes about two days and guides nature lovers through jungle areas teeming with wildlife.

The president of the Asociación para la Conservación de la Biósfera, Ezequiel Miranda, said that the opening of the trail is part of a project to involve the community in the nationwide development of ecotourism activities.

The trail´s designers also built an observation center out of local materials, where park rangers can monitor remote areas and aid in controlling illegal hunting, logging and land poaching, which frequently occurs along the park´s buffer zones.

The park, which straddles the border with Costa Rica, is home to Baird's tapirs, giant anteaters, all six species of neotropical cats, including the jaguar, puma, ocelot, margay, oncilla and jaguarundi. Monkeys, coatis and over 600 bird species of birds live in the park´s protected rainforest canopies.

The United Nations Educational, Scientific and Cultural Organization (UNESCO) designated the Parque Internacional La Amistad as a World Heritage Site in 1983.

 

A Paradise for animals and people

Almost every weekend my youngest son asked us to take him to Paradise Gardens in Alto Boquete. This is a very special place where  Paul and Jenny Saban, an wonderful English couple have created a refuge for animals who have been hurt, found, abandoned or mistreated. They have managed to combine a beautiful park like setting with education of wildlife as its focus. Many volunteers spend their time each week giving tours and caring for the many birds, monkeys  and other animals that are at the  center.They now open the gardens to the public to help support this venture and extend their rescue efforts. Be sure to visit them when you come to Boquete. Everyone knows where they are so just ask.

Here is a link to their website

Here are my photos