Panama Investor Blog

Will Panama be a Mining-Free Country?

Environmental groups announced today that they will ask the government to be installed on July 1^st in Panama to declare the country free of mining, through the review of laws in this sector.

 

This was reported in the press conference of Ecological Collective Voices (COVEC), the Ecological, Social and Agricultural Network Veraguas (RESAVE) and members of the Mesoamerican Movement Against Extractive Mining Model (M4), among other groups, urged the new government to halt mining concessions in the country.

 

"We asked the new government to press for a law to declare to Panama as a nation free of metal strip mining," said Olmedo Carrasquilla COVEC representative.

 

This request occurs at a number of mining projects that have caused environmental damage, such as Petaquilla, in the northern province of Colon, which led to the deforestation of large forested areas within the Mesoamerican Biological Corridor of the Panamanian Atlantic (CBMAP), which hangs a complaint developed without the approval of the Environmental Impact rating 3.

 

Also, a motion by the government in 2011 to develop the copper mining project in Cerro Colorado, in the Ngobe Bugle region, sparked riots in the western region of the country, leaving two dead and dozens injured.

Carrasquilla announced that lodged legal resources in Panamanian and international courts to end this economic activity, as well as to companies that don’t comply with the standards and laws in this area.

 

Meanwhile, Francisca Mendoza, RESAVE leader said that environmentalists "will join forces to reject mining projects, because they affect water quality, natural resources and agricultural production of smallholder communities" to surrounding developments miners.

Appointed director of the National Environmental Authority (ANAM), Mirei de Endara, predicted that the new administration will in fact perform audits of environmental impact studies.

 

The upcoming President Juan Carlos Varela, elected in the elections of 4 May, will assume the presidency of Panama on July 1. We will see where this new path takes us.

 

What are your thoughts on Panama: The Mining-Free Country?

Its got a good ring to it, but will it ever happen? I guess will have to wait and see how far the environmentalists and government officials are willing to go to face these powerful companies causing such distress and mixed feelings in Panama.

 

 

Ocean Reef – A beacon of Luxury in the City of Panama

 Have you ever dreamed of living on mainland, and yet reap all the benefits of living on a high-end gated community in an island, 360 view of the ocean with your yacht docked next to your home, viewing the entire city and yet not be in it? Well, we can help you with that and make that dream a reality. Panama has evolved in the real estate market, and demand for exclusive and luxurious homes continues to grow. Following the road past Punta Pacifica in Panama City you will find something truly spectacular. An artificial island built right on the corner of this area was created to satisfy a need of land and is now one of the most exclusive places to live in Panama. The development consists of two islands (originally 3 named La Niña, La Pinta and La Santa Maria named after the 3 ships used by Christopher Columbus) and a marina, all connected to the mainland. So far, the first island on the west has been successfully built and about 80% of the lots have been sold. This first one has a total surface of 87,552.96 mts2 and 72 lots for sale.  The second island of 103,251 mts2 is designed and scheduled to start construction within a year or so.

 

Ocean reef residents, club members and guest will enjoy a host of sumptuous amenities in a development that has much to offer. Lush landscapes, parks and recreational areas like tennis and others are featured prominently through the project. The two islands will be connected to the mainland by two bridges, making the commute to and from the mainland in the 160-meter (525 feet) bridge in only 5 minutes. It has a gate with 24 hour restricted access and monitored by trained security staff that will ensure the safety and privacy of the residents. We believe some homes will build a wall around it to increase safety, but diminishing the view. After all it is an island, so security must be a priority.

 

Having most of the lots and homes surpass the 1 million price tag makes this area a prime sector, where only a select few will manage to be part of, if they act quickly. We recommend checking this out, for it’s an investment worthwhile. Lots for the second island are increasing in price since demand is high. Out of the 72 lots available on the first island only hand full are left and surprisingly more than 90% of buyers have been Panamanian. Designs for homes are spectacular, and the marina will be something out of this world for it will be a Residential Marina and there will be limits on transient vessels and short-term rentals. The residents at Ocean Reef will have priority over non-resident whose lease agreements will be revocable with timely notification. An underground passageway was created to access the marina without having to drive above ground; a fleet of electric vehicles will be used for suppliers and workers.

 Grupo Los Pueblos are the ones who made this Island a reality since they focuse on innovative and unique developments of the highest standards and great magnitude. They have limited the development to 138 lots between both islands, unless a 3^rd or 4^th are created in the future. Over the years they have built thousands of homes and condos, several shopping malls, offices, and mixed-use complexes in Panama. Without doubt they are experts in real estate and construction management giving their costumers a sense of confidence in their investments. With this Master piece development, perhaps now Panama has made a statement and can be taken more accurately when referred as the Dubai of America.

 

 

For more information check out their website, or feel free to contact us!

Panama Pacifico - A City with a Bright Future.

 We recently made the decision to move across the Bridge of the Americas from Panama City into the area of Howard where Panama Pacifico is in development. 

This is why:

“Panama is renowned worldwide for its connectivity. This competitive advantage is reflected in every detail of Panama Pacifico’s master plan, from fiber-optic networks to the latest trends in green building to walkable neighborhood designs. London & Regional Properties (LRP) is committed to the concepts that: sustainable redevelopment can complement environmental preservation; private enterprise and government can collaborate for the greater good; and long-term view creates long-term value. 

From its first steps through its evolution, Panama Pacifico demonstrates the power of connectivity in every aspect of this growing community.

 From studio apartments to family residences, retail spaces and Class-A offices to custom built warehouses, at Panama Pacifico there are a variety of options available for home buyers, investors, and business owners in this fast growing community.

 Panama Pacifico is a world that forms a bridge between tradition and innovation, country breathing space and big-city accessibility, private funding and government support. A true master-planned community that brings together people of all ages to live, work and play. A residential haven with a vibrant mix of walkable neighborhoods and smart homes. A global enterprise that offers unprecedented business advantages. All set within a sustainable landscape linked by parks and trails. 

The cornerstone of Panama Pacifico’s carefully phased development is its world-class master plan, laid out in four ambitious phases over the coming years. During its first eight years (2008-2016), Panama Pacifico is slated for $405 million in total real estate development. Actual investment as of December 2012 totaled $250 million. When complete, Panama Pacifico will offer: 

1 million square meters of new commercial space over the life of the project

$4 billion in total investment

20,000 new residences

40,000 new permanent jobs

1,500 construction jobs

Millions of dollars in goods moved through the community on an annual basis.”

So why exactly did we choose to move to Panama Pacifico? Its simple:

There are lots of Opportunities for business and investments

We LIKE nature,

Its close to Panama City,

And we get to cross the bridge of the Americas more frequently, reminding us how amazing the Panama Canal is and how important it is for the world!

If you wish to know more about Panama Pacifico you can check out their website www.panamapacifico.com  – also, you contact us directly if you wish to discuss any particular area for your investments in the Republic of Panama. 

 

Another mega project for Panama

Superman had Metropolis and Panama now has a Megalapolis (hotel) and now a Panatropolis  advertised as the "global hub of the new world".  All are meant to sound big and on the normal scale of things they are. I first heard about this project from one of the developers about 6 years ago. Back then it struck me as a viable idea because they were putting in showrooms similar to what they have in the Colon free zone so that buyers would only need to fly into the International airport and shuttle over to the nearby showrooms to make their purchases. This would save a lot of drive time traveling to Colon where there are few hotels and restaurants to accommodate clients. Of course this will further dash the hopes of Colon ever becoming a vibrant city as been hoped by so many administrations.

From this video we learn that the Panatropolis is to encompass residential and commercial along with hotels, a golf course an many other amenities. A virtual city will be built near the Tocumen international airport. Many things have changed since that first look such as a world economic recession and the announcement of about $15 billion in infrastructure into the country. It will take a number of years to build this project out and only time will tell if the idea for a Panatropolis is a good one. See youtube video here.

 

More multinationals come to Panama

Panama continues to attract multinational companies and this article from La Prensa tells us who they are.

Machine translated from La Prensa

Three new multinational companies have chosen Panama to establish their regional headquarters. It is Germany's Bosch and Kuehne + Nagel and Spanish Puig.

Bosch provides services and technology in sectors such as automotive, consumer goods and industry. With 300 subsidiaries and a presence in over 60 countries, the company posted sales in 2009 by 53 billion dollars.

Kuehne + Nagel is a logistics service provider. It has over 900 offices in 100 countries and 55 000 employees.

Since late last year the company has its management in Panama for Central America, staying in Buenos Aires headquarters for the entire region. A month ago he received a license from the Panamanian government as regional headquarters of multinational companies.

In addition to making decisions for America, the company also has to Panama as a distribution center for the company for the entire region.

"We chose Panama for its location, opening connections, by size of business," said Ricardo Ortiz, manager of Kuehne + Nagel Sales of America, which advances the idea of the company's medium term is to expand in the country, distribution activities.

The latest company to join the list of multinational companies in Panama has been the Spanish Puig, firm in the industry of perfumes, cosmetics and fashion brands such as Carolina Herrera, Nina Ricci, Paco Rabanne and Prada, said the Ministry of Commerce and Industries a statement.

The company, based in Barcelona, annual revenues of 300 million billion dollars in 2009 and generates 17% of its sales in Latin America.

With these three companies and are 43 multinationals have set up their regional headquarters in Panama under the umbrella of Act 41 of 2007, which provides tax benefits, immigration and labor to multinationals. In addition to the local employment generated and the image as a business platform that projects, these companies often move executives to the country, people of high purchasing power who buy or rent apartments and become, somehow, the driving forces the local economy.

Procter & Gamble, Maersk, Sinopec, Cemex, BMW, Nestle, Adidas, Caterpillar and Sanofi Aventis are among the multinationals that have their regional headquarters in Panama.

Cielo Paraiso Opens 18-Hole Championship Golf Course in Boquete

I had an opportunity to visit Cielo Paraiso (Paradise Sky) last month and I must say it is beautiful and the views are  truly incredible. It had been well over a year since I have had the time to visit and they have made a great deal of progress under very difficult circumstances. Not only have they been struggling, as most residential projects with a challenging economy, but the man who's vision it was to build this project, Radeep Lal, passed away earlier this year of a heart attack. Raydeep and his wife Colleen came to Boquete about 10 years ago and were determined to build an 18 hole championship golf course and residential community. Radeep loved to play golf and he loved Boquete, so the building of Cielo Paraiso was to be a dream come true.

Radeep will be greatly missed, but fortunately his wife Colleen shared that vision and with the help of Radeep's family they have continued working on the project and completing the golf course. Cielo Paraiso will be a standing legacy to the vision and determination of Radeep and Colleen Lal. His dream has come true and all of us in Boquete and Chiriqui province will greatly benefit.

All of the infrastructure such as roads, water, electric have been completed and the first nine holes of the golf course have been playable for over a year. Now they have completed the back nine and in a few more months of grooming, the entire course will be ready to play. Here is a story from Sportgrass.com with more details.

Cielo Paraiso golfers enjoy serene, hilly terrain with a 360 degree view

Boquete, Panama (NYSE) 26 October 2010

Cielo Paraiso is the first 18-hole championship golf course level in Boquete, Panama, opened in January 2011. The course marks the end of the first phase of the Gladstone Developmentâ? S new residential resort development, Cielo Paraiso, which also completed 14 houses and 30 homesites for sale. Set in the picturesque mountains of Boquete, Panama, the 750-acre development of the newest and most exclusive residential areas resort community in Central America.

Designed by J. Michael Poellet for the protection of native flora and fauna habitat Cielo Paraisoâ?  While playing the beautiful yet challenging course, the players also have a spectacular view of the Baru Volcano, the Jaramillo and Talamanca Mountains and the Pacific Ocean, dotted with islands. The 7200-meter par 72 layout includes forests, meadows, valleys, ridges and riparian coupled with dramatic elevation changes make for a signature golf experience.

Our goal with Cielo Paraiso was to build a course to blend in perfectly with the unique topography of the land  said course designer J. Michael Poellet. I truly believe that we created one of the most visually stunning courses in all Central / South America.

Scenic home sites are currently available for purchase at Cielo Paraiso, starting at $ 150,000. These spacious home sites ranging from ¾ acres to over 2 acres of picturesque places on the property and offer sweeping views of the Pacific Ocean, and Jamarillo Talamanca mountain, Volcan Baru and golf course.

Cielo Paraiso is a unique opportunity, a piece of Boquete, one of the most sought after destinations in Panama for those who want to live or invest in a comfortable house and more popular destination in Central America,says Gladstone President Colleen Lal. The wonderful climate throughout the year and the natural beauty of Boquete region makes a perfect location for an active lifestyle, the Championship golf course, hiking, bird watching, mountain biking, rafting, and may include many other activities.

Gladstone Development is currently working on the plans for Phase II of development, a collection of well-equipped options that are smaller will contain. This idea was received well by buyers looking in Boquete.  Although our home sites are a very affordable option in Boquete, we plan to diversify our product mix to accommodate the demand for customers looking for a smaller second home. Lal says. The master plan for Phase II will be released in 2010, with construction starting early 2011.

Conveniently located just 30 minutes from David, the capital of Panama Chiriquà province, is the target of Boquete in the country situated on the most mountainous region, at 1,200 meters (3,600 feet). Situated between the Caldera River, which lies to the east, and Baru Volcano to the west, Boquete enjoys a comfortable climate, ideal for outdoor enthusiasts. Known as the Valley of Flowers and Eternal Spring,  charming Boquete has established itself as one of the fastest growing retirement and tourist destinations in the western hemisphere, with its serene beauty and variety of outdoor activities. The lush vegetation and vibrant population of rare birds and the possibilities for hiking through the Volcano Baru, the highest point of the country concerned have established Boquete as one of the world's 5 top eco-tourism destinations.

Recently, the AARP is ranked Boquete as one of the top destinations to buy a house, Panama offers first-world infrastructure of roads, business services, healthcare and telecommunications. A growing retirement and investment refuge with a more affordable standard of living, Panama has a sophisticated capital, incredible rain forests, and some of the best ecotourism in the world, bird watching, scores of exotic beaches and islands, snorkeling, diving, sport fishing, rafting, climbing, fine restaurants and a variety of historical sights.

 

What is the solution to Panama's customer service challenges?

Panama bills itself as a service economy, but you would not know it from the kind of service you get in the country. We all lament on the poor customer service in Panama, whether it is in a store, restaurants or  banks. You just shake your head and wonder why they don't get it. Panama has never really had to compete in the world as they had bank secrecy and a canal that no one else had. But things have changed dramatically and Panama is now going to have to compete with other countries for everything.  I often hear folks say that the lack of customer service in Panama is cultural, which my be the case in the past, but good customer service can be learned and Panama must learn soon if it wants to keep that service economy going. The fact is that good customer service is a matter of training, training and more training and it starts with the owners and managers and works its way down to the security guard standing in front of the business.

This article below was written by Ahden Bush, President of Institute of Customer Service-Panama at my request. I have worked with Ahden at our resort in Boquete and I believe her methods for improving  customer service in Panama will be most effective.

Why Panama must develop a culture of good customer service

The government of Panama talks about its pillars for growth.  However, a critical questions remains, what is the foundation under the pillars?   An important corner stone under the pillars is customer service excellence. This corner stone cannot be ignored.  If it is, it happens as a detriment to the foundation.  What has to happen to optimize Panama’s key advantages? 

Customer service excellence is THE business driver in today’s world and will be for many years to come.  An IBM global study of CEO’s across 60 countries found 88% of the executives believe getting closer to the customer is the top business strategy over the next 5 years.

• 53% of consumers will recommend a company to someone else because they received outstanding service, a higher percentage than if they received a lower price or top quality product.  This includes business to business and consumer to consumer.
• 86% of consumers quit doing business with a company due to a bad customer experience.
• 82% OF CONSUMERS THAT HAD A BAD EXPERIENCE TOLD OTHERS ABOUT IT – up 22% since 2006. 

But there are two big problems in offering excellent customer service – one is the rules and expectations have DRAMATICALLY changed in how to offer customer service excellence, and, second, Panama has a critical need to raise the bar of customer service excellence to match the challenges and opportunities being presented as a global hub.

What are the most immediate challenges?  One is a belief held by many Panamanians that Panamanians are not customer service oriented and the other is the need for the country to come together as a huge team to grab this challenge with a belief that Panama can become recognized worldwide for its customer service excellence by 2020 or before.  This is forcing business leaders and employees alike into uncharted territory but methods and processes are readily available.  Already several companies with Panamanian staff have been recognized both regionally and globally for customer service excellence.

What are the benefits to raising the bar for customer service excellence?  Every worldwide study shows substantial increases in profits as loyal customers return more frequently, pay more for what they buy from a trusted provider, and give referrals. 

Here in only one example from literally hundreds is a report from Forrester Research that annual revenue gains from a MODEST difference in customer service can total from $117M to $311M for large hotels.   In another example, a technology company increased it’s sales by 45% in one year with a deliberate focus on customer service.  In Panama, a transportation company raised their customer loyalty scores from detractors to promoters in only two years.

What is being done to educate businesses and direct customer contact employees to help increase Panama’s customer service excellence image?  Several initiatives are underway. 

One is the Institute of Customer Service-Panama as a professional advocacy body based on best practices for customer service excellence along with support and training for management and direct customer contact employees, a weekly educational news letter focusing on the new world of customer service with many how-to steps provided, an online library, assessments, Executive Conversations and so on.  A Knowledge Board is being formed to bring together people in Panama with a broad background in customer service excellence with the goal of creating a focal point of coordinated knowledge that everyone can access.    

Bottom line for customer service excellence, and THE MOST IMPORTANT ASPECT of customer service excellence and too often not mentioned is: Customer service excellence is about universal respect.  Yes, there are huge profits, but, again it is really making people’s lives better – everyone’s and we need that in today’s world.   

Artificial Island Project "Ocean Reef" to begin

This is a project that I have been hearing about for sometime, but until this week when the President help lay the first foundation stone in the bay, I was skeptical that it would ever come to fruition. It appears to be a series of three made made islands just off of Punta Pacifica. Sounds kind of like a Dubai project does'nt it?  The video below is well done and the only thing that is missing from this near perfect computer generated graphics is the Trump Ocean Club.

 

60 companies and 2,852 workers in Howard

The Panama Pacifico special economic zone operated by London & Regional have been very successful at attracting new businesses to the area. This article from La Prensa highlight many of these new businesses.

Machine translated fro LA Prensa

Electronic products, garments, chemicals, and naval components are already produced in the Panama Pacifico Special Economic Area.

Rafael E. R. Berrocal
[email protected]

The Panama Pacific Special Economic Area, located in the former Howard military base, seems to have begun its takeoff after more than 10 years of studies and tenders. Within its 2 000 5 hectares have been set up 60 companies, most of them linked to high-tech processes and logistics. All arrived in search of tax incentives that are granted within the enclosure.

In total, the developer London & Regional must have invested in infrastructure and promotion of $ 140 million for next year.

The program has already had its first results, and some companies are starting their productive, others are in the final stages and adequacy of their facilities.

Official figures from the agency administering the special economic area show that, to date, the activity of these companies has generated 2 000 852 thousand direct jobs and 200 jobs possible. In addition, estimated at 40 000 indirect jobs.

The report also details that these first 60 companies have already paid the state 57.3 million dollars in income tax, insurance, education and social insurance fees.

Among the companies that have already begun the process of production from Howard is Samtec, which is dedicated to making the connection tape for electronic circuits.

Another is Green Ivory companies that produce tagua buttons for clothing brand like Ralph Lauren and Abercrombie.

Klaus Calderon, owner of Green Ivory, said that Ecuador has moved its operation to Howard by the incentives offered in the area, which make up the difference in the cost of labor to other countries. Ivory Green invested $ 6 million in specialized equipment and made in Italy, which are being calibrated.

Calderon said his goal is to buy raw materials in Panama and, in consequence, is scheduled to drive the creation of a school in Chepo that allows farmers in these areas have knowledge about the specifications of the tagua you need. Among the tenants of Howard's BASF, a German company that is dedicated to the production of additives for concrete. 

The company representatives said that the aim will be selling additive in the region and for major projects in Panama, as is the extension of the Canal. Wartsila, Finland, is another company which is already operating in Howard. Its operation involves the rectification of pieces of large ships.

Olmedo Alfaro, the new administrator of the agency's Panama Pacific Special Economic Area, said that after the Panama Canal, this is the most important project for the state. He said that if the current investment schedule for $ 705 million by 2015, should have created 11 000 382 jobs by the year 2017 and 40 000 for 2047.

Alfaro said that management will be vigilant that companies comply with the promised investment and implement transformation of matter with high technology. Otherwise, he warned that the suspension shall incentives for those who violate the rules.

One company that is about to begin operations is 3PL, regional distributor of Procter & Gamble, the largest manufacturer of consumer goods in the world. To do this, 3PL has rented the largest winery in Howard's 10 thousand square meters.

Albacrome adds to the list of companies that operate from Howard. The company, based in El Salvador, made an investment of 21 million dollars in printing machinery, making purchase contracts with publications such as Cosmopolitan and Vanity Fair.

Gisela Porras, Panama Albacrome manager, said that within six months of operation the company has achieved a turnover of interest in countries like the Dominican Republic and Colombia. Are added, in addition, Caterpillar, Dell, 3M, ST Aerospace and INTELDAT.

Another of the big firms that explores Howard is installed in Sony Corporation. The Government will also promote this center of operations in South Korea, which are based manufacturers such as LG and Samsung.

President Martinelli on Fox News-a must see!

This is a great video with the president. With Panama's economic numbers looking so good, Cavuto asks him what he is doing right and what advise he would give to Obama. Great answers. I think this under 5 minute video will do more to put Panama in the minds of Americans than anything done before.