Panama Pacifico continues to lure investors

March 6, 2009

El Panamá América

Despite the global financial crisis, Panama Pacifico’s Special Economic Zone continues to generate interest on local and international markets, especially in South America and Europe.

By August 2009 we can expect the completion of two new buildings in the Área Especial Económica Panamá Pacífico (Panama Pacifico Special Economic Zone, or AEEPP). These will be the first Flex-Warehouse buildings completed in the project’s International Business Park (IBP).

The AEEPP is being master developed by London & Regional Panama (LRP), a local branch of the British-based London & Regional. “Despite the global financial crisis, we’re getting a good response,” said LRP Managing Director Henry Kardonski during a recent event at Expocomer 2009.

During the event, the Panama Pacifico project was presented to visitors from around the world. LRP representatives emphasized the advantages of investing to attendees, most of whom were business and trade representatives.

Construction on the project, which represents a total investment of $705 million, commenced in November of last year. The Panama Pacifico area—formerly the Howard military base—will be transformed into a new community featuring a logistics hub with residential and commercial sectors.

Master developer to invest $100 million this year alone

Kardonski says the project is progressing as planned, as international firms continue to show an interest in relocating here—particularly those involved in the maritime, light manufacturing and technology sectors.

This year alone, approximately $100 million will be invested in construction here, including that of new roads and the first buildings planned for the PanAmerica Corporate Center and International Business Park.

The master plan is being developed in accordance with Panama’s economic growth—i.e., as there is more growth and as more companies establish facilities in Panama Pacifico, LRP will continue to improve and add to the infrastructure.

Among the first companies to show an interest are firms from South America—particularly Brazil—and Europe. Panama Pacifico’s U.S. clients have “slackened the pace but are still interested,” according to Kardonski.

Commercial construction expected to create more jobs

This year alone, LRP is investing about $26 million in infrastructure, $40 million in four buildings, $20 million in the PanAmerica Corporate Center, and $16 million in the Town Center.

Business perspectives

Thanks to a strategic location close to Panama City, the Panama Canal, and the Pacific Ocean, Panama Pacifico is becoming an international business hub. Companies that have set up shop here include the likes of Cabo Drilling Corp., Caterpillar, MEC Repairs, Dell, 3M, and 3PL Panamericana. AEEPP Administrator Miguel Angel Clare emphasizes the benefits offered via Law 41 of 2004, which creates the Special Economic Zone and draws new businesses with legal, tax, and migratory benefits, among others. In addition to the commercial sector, Panama Pacifico consists of residential areas aimed at workers employed here.