Panama Pacifico

One of the largest development deals ever recorded
- The Daily Telegraph,
07.02.2007

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La Prensa Online (English) via The Miami Herald

Howard project nearing start date.

The development of the former Howard Air Force Base is expected to begin in earnest in two months or so as the master plan for the project starts to become a reality. More than 300 people are already working at the site, according to developer London & Regional Panama, including engineers, lawyers, accountants and architects developing the master plan as well as technicians conducting field studies for the environmental impact assessments required for the project.

In July, the construction of infrastructure is expected to start, boosting the number of workers to more than 1,000. L&R Panama General Manager Henry Kardonski said that a total of $60 million will be invested in the site in the next two years. Much of that money will be spent on infrastructure, such as improving roads and installing utilities such as telecommunications, water and power lines.

The former military installation is being heavily promoted both in Panama and abroad as a commercial center that will offer companies locating there substantial tax incentives as well as access to modern facilities, including an airport. Kardonski said four companies -- a multinational, a processing plant and two logistics firms -- have already signed letters of intent with L&R to locate in Howard. The manager declined to name them because the final details of the agreements are still being worked out.

These companies will join Dell and Singapore Aerospace Technologies, the former base's two current occupants. Kardonski said that L&R has contacted 150 other companies, and many have shown more than a passing interest in relocating to Howard. Many of them are from the U.S., Europe and Venezuela, and cite the tax breaks as the prime reason for considering a move to the base.

 The 1,400 hectare site will not only house businesses, but a residential project, a resort and golf course and amenities such as a shopping center and restaurants. "We're going to have a complete city with first-world standards," said Edgar Hernández, the project's director of infrastructure. While concerns have been raised about other major projects, such as the expansion of the Panama Canal, making it hard for L&R to obtain laborers or materials for the project, Hernández said that long-term deals are being worked out to ensure the project will not be hampered. The Miami Herald