The Government of Panama recently selected London & Regional (Panama) SA to develop a 1,400 hectare property, known as the Panama Pacifico Special Economic Area, which is strategically located at approximately 15 minutes from downtown Panama City, just off the Panamerican Highway and adjacent to the Panama Canal and the Pacific Ocean. One of the main partners of London & Regional (Panama) SA is London & Regional Properties, which is one of the world's largest privately-held property companies. Over the coming years, London & Regional (Panama) SA will develop this area into a large new community with a variety of uses, including corporate headquarters, call centres, offices, logistics facilities, new homes, a championship golf course, hotels, retail outlets, schools, health care and other facilities.
As infrastructure developments grind to a halt in neighbouring countries, the dredging and widening of the Panama canal rushes on, slowed only by the occasional archaeological discovery. Much of Panama's success during the global recession is banking on the expansion project, which will allow post-Panamax cargo ships to pass through the now inadequate gates....
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As infrastructure developments grind to a halt in neighbouring countries, the dredging and widening of the Panama canal rushes on, slowed only by the occasional archaeological discovery. Much of Panama's success during the global recession is banking on the expansion project, which will allow post-Panamax cargo ships to pass through the now inadequate gates.
Garnering financial support from five multilateral development institutions was crucial to the canal expansion advancing without problems. In December 2008, the consortium of lenders representing Asia, Europe, Latin America and the US agreed to pay $2.3 billion of the $5.25 billion projected cost of the project, with the remainder covered by canal-generated cash flow. Although the global recession has caused a decrease in traffic through the Panama Canal, lawyers feel this will not have an impact on the project's 2014 target completion date.
With last July's awarding of the prized concession to build the third set of locks, the last peg falls into place for the stretch to the canal project's completion. A consortium of developers led by Spain's Sacyr Vallehermoso beat out several other contenders with a $3.1 billion bid on the lock and channel job, the lowest proposed to the ACP (Panama Canal Authority). Of course, the actual construction work is yet to be completed, but lawyers are already seeing a great deal of interest from companies hoping to provide materials and services to the winning consortium.
The canal's promised returns have also kept the cranes moving on the approximately 150 tall buildings under construction in Panama City to house the hundreds of businesses expected to open offices or relocate altogether in the coming years. Special economic zones like the 1,400 hectare Panama Pacifico development inside the former Howard US Air Force Base offer tax, labour and immigration benefits for foreign businesses who establish regional headquarters there. Caterpillar and 3M are several of the most recent multinational corporations to establish hubs in Panama Pacifico.
While the tourism and residential development industries have taken a hit with the downturn, lawyers are still expecting positive economic growth in 2009. Anticipation of the nation reclaiming its status as an international crossroads for commerce also keeps investor capital flowing into Panama.
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