Welcome to the Panama Weekly News Roundup! The World Bank has approved a $300 million clean energy project. Price controls save Panamanians daily food costs. And the Metro fares will change in 2015. Here’s the latest.
World Bank unit approves $300 million financing for Panama wind farm.
Panama is growing fast, and that means an increased demand for energy. But Panama, unlike many larger countries, has a unique situation. There is very little space that’s apt for large-scale power plants, without polluting or disturbing the local wildlife and population. This is why clean energy is key to the country’s future. Earlier in December, Panama made some big headway, getting approved for a massive $300 million wind farm, which would provide energy to millions across the Central American nation.
The financing, administered through the bank’s International Finance Corp (IFC), is slated for the second and third stages of construction of the project near the city of Penonome in the central part of the country, about 93 miles (150 km) from Panama’s capital, Panama City.
When finished, the farm will have 86 wind turbines and generate 448 gigawatt hours of electricity per year, or about 5 percent of Panama’s total annual power demand, according to the IFC.
Source: Reuters
Metro Rates Will Be Based On Time Used In 2015
Panama’s Metro, which is less than a year old, is planning some fare changes for the New Year. The Metro, which is currently priced at $0.35 per trip, is heavily subsidized by the government. In 2015 they plan on overhauling the whole public transportation pricing system to include flat rates for busses and subways, as well as charging by time used, rather than a fixed rate.
“Once the Metro bus and Metro are integrated, there will be a flat rate, and users will be able to use the bus and Metro for the same price. This will represent a significant savings if you use your card on multiple forms of transportation.” – Varela
Source: PTY Life
Panama Lowers 2014 Growth Estimate Down to 6.3%
Panama’s economy is the fastest growing in the region, and over the past 10 years, has exceeded many estimates both foreign and domestic. This past year, however, it slowed down, lowering growth estimates by about 2%. And although this is considered an economic cooling, it still holds the line with Panama’s 10+ years of sustained growth.
Panama’s economy grew 8.4 percent in 2013 but has been cooling as $15 billion of infrastructure projects, mainly for the expansion of the Panama Canal, have winded down. Such public works had helped lift economic growth to one of the highest rates in Latin America in recent years.
The expanded waterway, which connects the Atlantic and Pacific Oceans, was originally due to open this year, but disputes over funding and delays have pushed that back to 2016.
Source: Reuters
Price Controls Cut Basic Food Basket By $63
Since Panama elected its new president, Juan Carlos Varela, in May of this year, food price controls have been in effect. Though there was some pushback to the regulations by politicians and citizens, it appears as though the end results have indeed worked as planned. According to the government, the average Panamanian now spends $63 less per month on basic food items. And that’s news to their ears for everyone who supported the initiative in the beginning.
“This achievement is a direct result of the implementation by the Government of the Republic of Panamaof the Price Control Act and its enforcement by local owners who sell established products,” the statement said Panamanian President Juan Carlos Varela, signed the decree on July 1, when he took office for a period of five years. The decree controls the price of 22 products of the basic basket as a measure to lower the cost of living. According to the Authority for Consumer Protection and Antitrust (ACODECO), that tracks the compliance in stores, 88.7% of traders comply with the decree.
Source: Newsroom Panama
