In the last two years the country which is the Latin American champion in wind energy lost $63 million a year from purchasing wind MWh at $70 and having to resell it at $7.
We are in agreement with the need to contribute to the sustainability of human development on this planet, and the need to transform the energy matrix of countries in order to become less dependent on oil, but the balance of the cost of this transformation needs to be adequate, in order to avoid making the kind of mistakes committed by the government of Uruguay.
The state-run National Power and Light Company is awaiting proposals from companies which would allow the reactivation of the San Buenaventura wind farm, which for now is not a profitable project.
Right now the project is in the process of reviewing costs and it has not yet been determined whether or not to continue with the work. The National Power and Light Company (CNFL) is waiting for new financially profitable, and concrete offers which adhere to the budget of the company in order to assess whether to reactivate the project.
Companies interested in the concession are not yet clear how the dredging of the access channel to the port will be financed and what impact will have the cost on the profitability of the project.
According to authorities at the Autonomous Executive Port Commission (CEPA), the cost of dredging must be assumed by the government of El Salvador, through them. However, the government has not included this project in its budget.
The impossibility of investing more in corporate securities and less in government debt is inhibiting the long-term growth of savings managed by pension funds.
Studies by experts in the field estimate that between 2006 and 2012 pension funds missed out on between "... $600 and $900 million." Augusto Morales, director of the Salvadoran Association of Pension Fund Administrators (Asafondos, union of the AFP) told that Laprensagrafica.com "... workers' savings total $7.5 billion between the two administrators. Of that total, $2 billion has generated in 16 years (since the system changed)."
Industry participants predict a year-end in the red because of a sharp increase in claims for losses.
Prensa.com reports: "Although total premiums up to October 2013 was $976 million, with growth in the sector of 9.6% compared to the same period last year, the directors of the Panamanian Association of Insurers (Apadea) predict that at the end of the year there will be a loss. "
The Supreme Court has ruled that the collection of a 1% tax over revenue as minimum payment for income tax is unconstitutional.
The ruling came months after the submission of a claim of unconstitutionality "through a legal team set up by the National Association of Private Enterprise (ANEP), along with union representatives and other affected MSMEs," reported Laprensagrafica.com .
Workers savings in El Salvador are being invested in government securities with low returns.
Laprensagrafica.com reports: "Pension Fund Administrators (AFP's by their initials in Spanish), have invested between 70% and 80% of the fund in public debt from different institutions. The central government uses this money to pay those who retired under the previous system." However, profitability has been low, this is because the law hinders the AFP's options.
Macroeconomic instability and lack of certainty over the variables that affect the production and marketing of goods and services, make it crucial to have excellent cost control.
An analysis on the subject is provided by Otto Stecher, Director of Business Outsourcing Services at Deloitte, detailing the particular situation of Costa Rica's economy and its impact on business, which can be extrapolated to any company in the region.
The Panamanian Aseguradores Association (APADEA), is a non-profit organisation, that was created in 1952 with the objective of developing, enlarging and coordinating the activity of the insurance market throughout Panama.
Operates in Panama
Phone: (507) 225-4445