Panama President Varela plans $35 billion in infrastructure projects
President Varela was recently on an official trip to Spain. He announced plans for $35 billion in projects with specifics to come. To start with is the major expansion of the Metro Subway project, a second subway line which is going forward. The huge Panama Canal expansion is forging ahead with a new projected completion timeline of early 2016.
Some former President Martinelli pet projects are now on hold – the new convention center and a hospital in particular. So what else does Varela have in mind? He has spoken of major water treatment and distribution projects, tourism development, and the development of Colon. Expect some restraint as Varela returns Panama back to a spending deficit no greater than 2% of GDP as mandated by the Constitution. Recently the annual deficit had grown to just over 3% of GDP.
“Panamanian President Juan Carlos Varela on Tuesday in Madrid unveiled several big infrastructure investment projects and gave an ambitious forecast for the Central American country’s economic growth.
Varela devoted the second day of his official visit to Spain to presenting to businessmen the advantages of investing and working in Panama, announcing a “new era” in bilateral relations.
The president began the day with a conference at the New Economic Forum, which drew a large audience of businessmen.
Varela emphasized that over the past seven years his country has grown at an annual rate of between 6 and 9 percent.
With regard to the projects, he said his prediction for the next few years was for investments of $35 billion in transportation, energy, water treatment, health and tourism infrastructure.”