Panama Pacifico

Leading UK developer, London & Regional, has secured rights to build a new 'mini city' on the banks of the Panama Canal
- Legal Week,
March 2007

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English - La Prensa

$60 MILLION TO BE INVESTED OVER THE NEXT TWO YEARS.

by MARIANELA PALACIOS RAMSBOTT

Over 300 people are currently working on the Master Plan for Howard designed by London & Regional Panamá (L&R), which will be marketed internationally as Panamá Pacífico beginning in July this year. There are not only engineers, architects, lawyers, and various consultants working, but also workers and technicians running land surveys and carrying out soil and environmental impact assessments.

“We will begin building the logistics park and the international business park next summer” informed L&R Panama General Manager Henry Kardonski. “One thousand jobs will need to be filled by the time the construction phase starts.”

Over the next two years, investment in the area of Panamá Pacífico will reach ‘at least’ 60 million dollars.

Much of this money will be spent by London on infrastructure - including construction of internal roads and new road access to Howard and provision of basic services (telephony, telecommunications, water, energy, and transportation) – and the business and logistics parks.

The remainder will be contributed by companies planning to settle in the former US military base, which is being marketed internationally as one of Panama’s new development poles: an ultra-modern enclave for business services, an extremely competitive complex for the manufacture of high-tech goods, and a city for the future.

Four in the pipeline

At least four companies – a multinational, a processing plant, and two logistics firms – have already signed letters of intent with L&R to settle in Howard. Kardonski did not mention names because the final contracts have yet to be signed, but he assured that ‘these are not castles in the air’ and that the country will soon have good news in this connection.

The four new companies will join current business park customers Dell, Singapore Technologies Aerospace, and others. This is the tip of the iceberg, however. “We have approached over 150 small, medium, and large companies, both domestic and foreign, and all have expressed an interest in coming,” commented the GM.

Most foreign companies wishing to come to Howard because of the fiscal benefits being offered are based in the United States, Venezuela, Spain, and other European countries.

World class

World class companies are participating in the design of this business city, including Ware Malcomb, SMWM, and MVE Pacific (see Hired consultants).

The 1,400 hectares of Panamá Pacífico will house logistics parks and office and storage complexes, as well as low, medium, and high density housing, shopping malls, hotels, restaurants, a resort, golf courses, sports areas, parks, professional and technical training facilities, schools, universities, and churches.

“We will have a full, self-contained, and first-world city: excellent transportation and security systems, well-designed pedestrian lanes, parks all around, fibre optic alternatives, and underground connections,” explained Edgar Hernández, the project’s Director of Infrastructure.

According to the Master Plan, hotels to be built in Howard will have the capacity for 100,000 rooms. Some will become part of the touristic area, but the core of this activity will be the business hotels to be built around the city centre.

"All of the world’s main hotel chains have already visited Howard and have expressed special interest in business hotels," said Kardonski.

Challenges

Construction of the first phase of the Panamá Pacífico project will coincide with the start-up of construction on the Panama Canal’s third set of locks, the real estate boom, and other investments in port and road facilities. All will compete for cement and steel and labourers. When asked about the possibility that the high construction demands and limited offer of supplies and workers could place a brake on the project’s development pace, L&R guaranteed that there is no cause for concern.

“We are hiring and making commitments with Panamanian companies already having their own staff. We are not hiring new companies and neither are we building ourselves,” said Hernández.

Some factors subtracting from Panama’s competitiveness and being taken into consideration by users considering settling in Howard or elsewhere include the dearth of workers with specialized training, the poor quality of education, and the unexpected salary increases that took place recently. However, a law passed in 2007 to encourage multinationals to come to Panama has simplified the task of promoting Panamá Pacífico around the world and is a plus. The same goes for the country’s real estate boom, the strength of its international banking centre and ports system, the project to expand the Panama Canal, the air transport hub, stable politics, and good security indexes.

Article Source:

http://www.prensa.com/hoy/negocios/1351501.html