Although the government raised the ceiling rate for affordable housing to $50 thousand, the low profit margins of these projects, coupled with the excessive amount of paperwork and permits that must be obtained to initiate developments are discouraging interest in construction projects of this type. A special legal framework, which requires less paperwork and undertakes processes faster, could minimize bureaucratic costs and increase the incentive to invest in social interest projects.

Erick McGowen, president of the Panamanian Chamber of Construction (Capac), said in an article on Prensa.com that "... 'The profit margin of the companies in these projects is marginal and if we add the bureaucratic burden, every day there is less investor interest in backing this segment. '"

"... In addition to the local permits, companies must obtain approval for earthworks, approval from the fire department if explosives are used in the work, along with a certification from the Department of Sanitation of the Ministry of Health, among other things. Currently, it takes between six and eight months to obtain all of the permits needed to begin construction of a project. "

Source: Prensa.com

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