Transcript OPORTUNIDADES DE INVERSIÓN EN PANAMÁ

Presentation outline
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Facts about Panama
Logistics and connectivity
Special economic areas
Education and labor force
Business climate
Current and future projects
Investment opportunities
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Why invest in Panama?
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Privileged geographic position
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Modern investment laws
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Solid economic growth
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Strong financial center
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Political, economic and social stability
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Qualified and available labour force
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Modern medical and health services
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Country free of natural disasters
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Great connectivity for world trade and
communications
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Home to the most important free trade zone in
the Western Hemisphere
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Dollarized Economy
Panama facts
Population: 3,395,346
Area: 77,517 km2
30,193 miles2
GDP growth
GDP
US$ 16,966.1 millions (2007)
US$ 18,425.2 millions (Nov. 2008)
GDP Per Capita: US$ 5,080.00
Inflation:
6.1% (2007)
11.2 % (2007)
7.7% (Nov. 2008)
9.2 % (Nov. 2008)
Unemployment rate: 5.6%
Composition of the national GDP
10.2%
10.0%
Agriculture
Manufacturing
Services
Other industries
10.6%
69.2%
Solid economic growth
20,000.0
14.0
18,000.0
12.0
16,000.0
10.0
14,000.0
12,000.0
8.0
10,000.0
6.0
8,000.0
6,000.0
4.0
Panama has been ranked
among the countries with
lower costs of living,
according to ECLAC,
(Economic Latin America
Commission) and lower
operating costs .
4,000.0
2.0
2,000.0
-
0.0
2001
2002
2003
2004
2005
2006
2007
2008
World Economic Forum: Panama within the top 5 economies in Latin America in their:
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Business Competitiveness Index
Global Competitiveness Index
Global Enabling Trade Report
Financial Development Index
Foreign Direct Investment
2574
1907
Panama is the number one
destiny for foreign direct
investment (FDI) in the
region.
1782
1012
1027
792
517
393
99
FDI up to September 2008:
USD $1,782 millions.
2000
2001
2002
2003
2004
2005
2006
Source: Contraloria General de la República.
*In million dollars
INVESTMENT DRIVERS:
•Construction
•Tourism
•Communication
•Transportation
•Maritime sector
•Financial operations
2007
Sep.
2008
Panama: A Hub for all sectors
Panama Canal
Port System
Interoceanic Railroad
Air Connectivity
LOGISTICS AND CONNECTIVITY
ATLANTIC
Logistic Platform for the world
GATUN
LAKE
Panama Canal
Railroad/ Fiber optic cable
Transithmic Highway
Panamerican Highwah
Ports
Airports
PACIFIC
Great access to world markets
Unión Europea
(384 millones)
NAFTA
(387 millones)
CARICOM
APEC
(14 millones)
(2.5 billones)
MCCA
(30 MILLONES)
CAN
(100 millones)
MERCOSUR
(212 millones)
UNCTAD has qualified Panama as the
country with best connectivity in Latin
America.
Panama Canal
Access to 144 maritime routes
in 80 countries
14,000 ships transit the
waterway annually
Movement of cargo of 300
MT/ year
Participates directly in 5% of
world trade
Port System
ATLANTIC
• Manzanillo International Terminal Stevedoring Services of America
• Colon Container Terminal - Evergreen
Marine Corp
• Panama Ports - Cristobal
PACIFIC
• Panama Ports
Balboa Terminal -Hutchinson Wampoa’s
Movement of 4.3 million TEU´s up to
November 2008
Container movements
Colon Container Terminal
Manzanillo International
Terminal
Panama Ports Balboa
Panama Ports Cristóbal
TOTALS
2005
2006
2007
Jan-June
2008
473,626
614,036
705,252
308,032
1,580,659
1,331,267
1,279,903
708,323
663,762
988,583
1,833,798
973,110
38,173
80,799
166,641
84,169
2,756,220
3,014,685
3,985,594
2,073,634
Expansion of the capacity of the container ports
Ship to shore cranes
Port
Post Panamax Panamax
Container
Yard (acres)
Estimated TEU
capacity
(thousands)
MIT
24
2
130
4,000
CCT
3
5
91
800
PPC - Cristóbal
4
6
107
3,250
PPC - Balboa
10
6
158
3,000
Total - Expanded
41
19
487
11,050
The expansion of the port terminals will 3,850 new jobs.
Source: Panamenian Maritime Chamber.
HUB of the Americas - COPA Airlines
•Transports cargo and passengers through
126 daily flights from Panama to a big
network of routes including the Caribbean,
North, Central and South America.
• Will offer access to a total of 45
destinations and 21 countries from
Panama, before the end of 2008.
•By the end of 2008 it will have a fleet of
43 modern and efficient aircrafts, including
28 Boeing 737 Next Generation airplanes
and 15 Embraer jets. This represents one
of the youngest fleets in America.
Panama, closer
to the World
• Direct flights
from/to Panama
to 54 different
destinations.
• 14 international
airlines
Expansion of the Tocumen International Airport
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Phase 1 was completed with the improvements of the passengers terminals
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Phase 2 - August 2008 – 2010
– Tender for the construction of a new linear dock on the nor-occidental side and 12
new boarding positions .
– The reference price announced in Panama Compra is of 51.8 million dollars and the
deadline for the presentation of proposals is October 20, 2008.
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Phase 3 – planned for 2015
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Five new boarding positions on the southwest side.
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Expansion of the platform to the front
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New boarding positions (12)
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New parking areas
Phase 4 - 2025-2030
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Expansion of the platform to the south
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New boarding positions, 65 in total
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New parking areas
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New and specialized commercial zone.
Connectivity. Telecommunications
United States
Bermuda
Miami, FL
Mexico
Belize
Panama is connected to the
world through 5 fiber optic
submarine cables
Bahamas
Puerto Rico
St. Croix
Curaçao
Aruba
Venezuela
Cayman Is.
Colombia
“Most globalized economy of
the region.” AT Kearny Index
(2007) /Global Chronicle.
Ecuador
Maya 1
Arcos 1
SAC
MAC
Pan American
Brazil
Peru
Bolivia
Paraguay
ArgentinaUruguay
“Ranked among the top three
countries in LA with the best
logistics and connectivity”
World Bank.
Available labor force
Legislation
Programs for the improvement of human resource
EDUCATION AND LABOR FORCE
Human Resources
As of August 2008 the estimated economically active population of Panama is
of 2,356,900 people.
GRADUATES:
HIGH SCHOOL
UNIVERSITY
2003
58,503
18,927
2004
58,721
18,655
2005
61,284
17,800
2006
59,235
19,679
2007
63,919 (e)
21,765 (e)
Source: Contraloría General de la República de Panamá
Labor Legislation
The Labor Code states that the
labor contract must in writing, for
an indefinite or definite period of
time, or for a specific project.
Salaries can be fixed by unit of
time (month, fortnight, week, day
or hour) task, or specific job.
Employees must be paid at least twice a month.
The Government establishes minimum wage schedules for specific
activities as per a determined geographical area.
Human Resources Development
• English for Life.
Government initiative to improve the level of
English among high school and university students in order for them to
be more competitive in the job market
• IFARHU.
Supports the development of the human resource of
Panama, through educational assistance, credits for studies and
scholarships.
• SENACYT.
Promotes technology, science and innovation as tools
for sustainable development of the country
• Connected to Knowledge.
Connect 1,000 public schools
to internet in 4 years thru solar energy and wireless access
• COSPAE.
Technical training private center. Programs prepared upon
request from private sector
INADEH
www.inadeh.gob.pa
Government institution
responsible in training the
labour force with technical
training, in order to achieve
social and economic
development.
Areas of training:
English
TICs
Commerce and Service
Industrial
Agriculture
Construction
INADEH – Training programs
15%
28%
26%
23%
8%
Graduates from INADEH 2004-2008
188,729
133,310
42,021
33,383
9,319
Colon Free Zone
Export Processing Zones and Call Centers
City of Knowledge
Panama - Pacifico
SPECIAL ECONOMIC AREAS
Colon Free Zone
• Is the largest free zone of the Western
Hemisphere, being the major trading
center for Latin America and the
Caribbean.
• Area of 680 hectares (1680 acres) and a
planned expansion of 200 hectares.
• 250,000 annual visitors and 2,462
companies
• International commercial exchange by
September 2008:
USD $13,095 millions (increase of 12.1%)
• Offers monetary advantages and tax
benefits
Export Processing Zones – Call Centers
No income tax, sales taxes, import duties or any other
national taxes on call centers export operations.
Special employee stability regime
Special vacation schedules
City of Knowledge
www.cdspanama.org
Created by law N°6 of 1998
Former Southern Command base, it is now a
private International complex for R&D
Offers benefits to companies and entrepreneurs
who wish to promote direct relationship
between technological development and
business for advanced productivity.
It´s objective is to create synergy with
International Universities, Research Centers and
International Organizations.
Panama Pacifico
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The site of the former Howard U.S. Air
Force base
1,400 hectare Special Economic Zone
adjacent to the Canal and 15 minutes to
Downtown Panama City.
The creation of a world-class global
business hub and master-planned
community.
London & Regional brings international
expertise as master planner.
$405 million in new development
from 2008 to 2015. $78 million
development in 2009 alone.
The creation of a world-class global
business hub and master-planned
community over the coming years.
Panama Pacifico
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Development includes:
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Commercial centers
Logistics, distribution and manufacturing
Corporate headquarters
Call centers
Technology campus
Mixed-use downtown area (Town Center)
A variety of residential neighborhoods
Championship golf and community
amenities
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Tax Law 41 of 2004 provides compelling
legal, fiscal and labor incentives.
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Companies can lease space, purchase land
or build-to-suit custom facilities.
Area accomodates future company growth.
Carefully designed in the natural setting of
mountains, valleys and tropical rainforest.
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Available services
Government modernization and development strategy
Laws that promote investment
Free Trade Agreements
BUSINESS CLIMATE
Competitve service market
Local Domestic
Long Distance
Services
Long Distance
International
Mobile
Communications
High Speed Internet
Voice and Data
Data Centers
Private Voice
Circuit
Satelite and Cable TV
Broadband
Efficient international banking system
US Dollar as the legal
tender
92 banks
Total assets
– US$ 68,742 millions
(December 2007)
– US$ 25,697 millions
(October 2008)
– Increase of 22.1%
Insurance and Reinsurance
www.superseguros.gob.pa
• Regulated by the Insurance and
Reinsurance Superintendence
• Over 41 national and international
insurance, reassurance and captive
insurance companies
• Creates job offers for over 2,100 people.
• Total assets of USD $1,012.7 million
Government Modernization
• Panama Emprende
To open companies online
• Panama Compra
Online government purchases
• Panama Tramita
Online processing system
Modern laws to promote investment
Easy
Opening of
Companies
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Multinational
Headquarter
Law
Intellectual
Property
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Export
Processing
Zones
Legal Stability
of
Investments
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Merchant Marine
and Flagging of
ships
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Consumer
Protection
Call Center
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Film Law
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Tourism
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Free Trade Agreements
•FTA’s with: El Salvador, Taiwan, Singapore, Chile.
•Concluded negotiations with: USA, Honduras, Costa Rica, Nicaragua and
Guatemala.
•Present negotiations with: European Union, CARICOM, Cuba and Canada
CURRENT PROJECTS AND
INVESTMENT OPPORTUNITIES
Panama Canal Expansion Project
Estimated costs of $5,250 M ensuring
competitiveness of the waterway and
consolidating Panama's logistics position.
It will have an impact in the national economy
of 1% to 1.2% above the GDP growth.
12,000
TEU
Summary of Expansion Program
Panama Canal Expansion Program : An Update
•Four international consortia will participate in the bidding for the design and
construction of the third set of locks. 30 different countries comprise the consortia.
•Three of the five dry excavation contracts for the Pacific access were awarded
•The project administrator Mizuho Corporate Bank Ltd and the financial and legal
consultant Shearman & Sterling LLP, firms were selected.
•By the end of 2008 the program had an approximate advance of 15 to 20% and the core
of the project will be during 2009 until 2011.
•In April 2008 the appropriate financing structure for the project was determined.
•US$2,300 million were financed, this is not the final amount yet, since it will depend on
the construction of the third set of locks, which is the largest bidding package.
Energy
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Oil Free Zones:
– Based on the National Energy Policy – Regional
Center (2005)
– To promote new investments
– Tax exemptions
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Ethanol:
– Potential for the development of ethanol made of
Sugar Cane, a mixture 80/10 – (gasoline/ethanol).
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Refinery Projects:
– Puerto Armuelles – 350,000 b/d – Oxy and QP
– America’s Energy Center – Industrial Park – Atlantic
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Bio Diesel:
For processing palm oil-96% diesel – 5% biodiesel.
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Law No. 52 of July 2008, creation of National Secretary
of Energy
Hydro generation
Refineries
Bio energy
Guajira
Cartagena
v
Tank storage
Colon
Regional
Energy Hub
Gas pipeline
Energy
300
MW
GU
ES
HO
300
MW
Line of 230 KV
between all
countries
300
MW
NI
300
MW
PL.NI.
TICUANTEPE
Through SIEPAC, Panama
will have access to
Guatemala, Honduras, El
Salvador, Costa Rica and
Nicaragua.
MODELO
ENERGÉTICO
CR
300
MW
CAÑAS
An electric energy
integration project that
began in June, 2006.
PA
PARRITA
Fecha
entrada:
Mayo 2007
CO
RIO CLARO
VELADERO
Operation of a wholesale power generation market.
Line of 1830km, with capacity for up to 300 MW
Possiblity to export
power to 5
countries.
Tourism
www.atp.gob.pa / www.visitpanama.com
Law N° 8 of 1994, offers benefits to tourism oriented
activities. Law No. 2, 2006, grants concessions to
operate tourist activities on coast and islands.
5 ethnic groups
Historical landscapes
Visitors entering Panama
January – December 2007: 1,428,395
January – December 2008: 1,600, 000
Nowadays, 16,000 rooms available.
2007-2012 Project of 104 new hotels (22,227 rooms)
Flora and
Fauna
Beaches
Panama is Home Port for Royal Caribbean Cruise Line
Law Decree Nº 2 of 1998 which promotes and
regulates casinos.
Enchantment of the Seas
Mining
• Copper Deposit potential
– Petaquilla (Colon) 1,500 millions tons,
– Cerro Colorado (Chiriquí) 4,500 millions tons
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A medium grade of 0.76% copper, using a 0.4% copper cutoff grade.
Estimated investment US$7,000 Millions.
• Manganese – Province of Colon
• Gold – Province of Veraguas, Colon and Chiriquí
• Silver – Province of Veraguas, Colon and Chiriquí
Construction
Construction industry represents approximately 5.8% of the GDP
2003
2004
2005
2006
2007
2008
883.4
473.8
931.0
1,007.5
1,302.9
1,222.65
*Million US Dollars
Road infrastructure development
Bridge on the Changuinola River
Provincia of Bocas del Toro
Highway and Road
Panama-Colon
•Length of 458 meters
•Currently on the second stage
•Investment cost of $7 million dollars
•Investment of $215.8 million
•Main entry to Puerto Armuelles, in
the Province of Chiriquí.
•A new road of 70 km
Coastal Band Project
The project will be in divided by:
1. The construction of filling
hectares in the Bay of Panama.
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2. Construction of a freeway of 2.6 km,
with 4 lanes of 3.50m of width each
one.
3. Construction of 3 interchanging
lanes (bridges).
Biodiversity Museum
• Government support for this
project
• Center for scientific exchange
and learning
• Center for the promotion of
Panama´s Biodiversity.
• Worldwide symbol of
environmental protection.
Frank Gehry´s design
Cleaning of the City and Bay of Panama
To recover the Bay of Panama in order
to have a better city, improving the
environment
and
a
better
management of natural resources.
Appropriate drainage and collectors
plants, that will treat raw sewage
before reaching the bay.
Investment of US$350 millions
Completed in 2011
Other Investment Projects
OXY-QP
Cerro Colorado
AES
Red Frog
Harkem
Petaquilla
Petaquilla
Energías
Colon Free Zone
Howard
Current projects
being developed in
Panama
Ports America
3M
Hewlett Packard
Caterpillar
PSA
CCT
Panama Ports Company
Gantrap
MIT
CEMEX
www.mici.gob.pa
THANK YOU!