It has been two months since the Investment Summit 2013 was held in Guatemala and two investment projects have materialized totaling $109 million.
These are the construction of a hydroelectric plant in Rio Hondo, Zacapa, capable of generating 32 MW and a mushroom production plant in Salcajá, Quetzaltenango. What is more, during the next three years it is expected that another $225 million will be generated in new projects, making a total of $334 million.
In the special economic area at the former Howard Air Base there are now 164 companies operating in different sectors with investment so far totalling $270 million.
Capital.com.pa reports: "Some 164 companies are operating in the Panama Pacifico. 30% of them are in the services and retail stores sector, 18% are in the maritime industry, 15% are logistics companies, 13% are high value-added industries and the remaining percentage corresponds to other economic activities. "
Businessmen want to expedite the process of approval by the Legislature, in which Proesa is the governing body, and which may include water and sanitation projects.
Members of the Council for Growth are seeking Congressional support in order to make three amendments to the Special Act on Public-Private Partnerships.
Carlos Guerrero, private sector representative on the Board and president of the Salvadoran Chamber of Construction (Casalco) explained that the reforms revolve around three themes. "One is to expedite the approval process of a partnership in the legislature. Currently, a project has to gain approval of the Assembly many times," noted an article in Elmundo.com.sv.
For four years, Britain's BG Group will explore 35,000 square kilometers in the Honduran Caribbean, looking for hydrocarbons.
According to the manager of government relations for the company, Andrew Hepburn, they are waiting for the exploration contract signed by the oil company and the government to be published in the official newspaper La Gaceta.
Brazilian investors estimate that a minimum of 50,000 hectares are needed to develop soybean production for the domestic market and export.
This was confirmed by the Deputy Minister of the Ministry of Agriculture and Livestock (SAG), Ramon Escobar, during a meeting between investors and members of the SAG. The mission is composed of representatives of sectors including energy, infrastructure, tourism and agribusiness.
Honduras, Guatemala, Nicaragua and El Salvador attract investment based on the exploitation of natural resources and unskilled, but cheap, labor.
A report by the Central American Institute for Fiscal Studies (ICEF), reveals that Central America recorded last year $9.70 billion in foreign direct investment (FDI), with Panama and Costa Rica being the recipients of about 60% of these flows.
$500 million is the estimated amount that has not been invested due to bad business climate, poor image and lack of institutional credit, which frightens investors away.
These are the indications of the economist and former president of the Central Reserve Bank, Mauritius Choussy: "In four years, the amount lost adds up to $2 billion, which could have generated more than 150,000 jobs.
July 15 will see the opening of the registration process for banks to comply with the Law on tax compliance for accounts abroad, adopted in 2010 by the U.S.
This law will affect banks' relations with the so-called "U.S. persons" worldwide. "Since mid-July, therefore, banks may finalise the agreement with the IRS (Internal Revenue Service, an organization equivalent to the Department of Revenue) to be part of the law-abiding entities", reported Prensa.com.
Investment Fund Managers in Costa Rica are looking to market their securities across Central America.
Some of these companies have many years experience in foreign markets and other started this year in 2013. For example the two funds belonging to Improsa SAFI have been authorized in Panama since 2009, while others such as Interbolsa, resumed this year the work of internationalization in all countries.
The company has two months to submit a new plan to the Executive on the integration of corporate governance and the search for a new strategic partner.
So ordered the Minister of the Presidency, María Antonieta Guillén. This comes after the granting of an extension to the term of the commission set up by the Honduran Telecommunications Company (Hondutel).
Rumors are that the U.S. Federal Reserve is preparing to reduce its bond purchase program, motivating the sale of bonds in emerging markets.
"A rise in bond yields in developed markets and a better prognosis for the U.S. economy are making bonds from the emerging countries, from Turkey to Chile, seem less attractive. On Friday, currencies, bonds and shares in these markets fell significantly," noted an article in Wsj.com.
The phenomenon affects much of Latin America, whose countries spend on average 8% of their GDP on security costs.
That was the conclusion reached during the forum "Connecting businesses as partners for prosperity with security in the Americas", organized by the Organization of American States (OAS) and the private sector, under the framework of the Guatemala Investment Summit.
In the event that he wins the next presidential election, Juan Carlos Varela will have prepared for the audit of all the concessions granted during the Martinelli administration.
Editorial
The announcement of the main opposition candidate in the presidential elections in Panama in May 2014, the former Vice President Juan Carlos Varela, from the Partido Panameñista party, one of the most likely candidates to be elected, could mean a serious blow to the international perception of the country in terms of receiver of investment, putting a question mark on the legal certainty of the contracts signed by the state.
A new wind farm and the expansion of the International Airport of El Salvador, are the first two projects to be conducted under this system.
"Today (yesterday) I called a meeting with the president of CEPA (Autonomous Executive Port Commission) and CEL (Executive Hydroelectric Commission of the Lempa River) to immediately structure the first two projects: the expansion of the international airport and the wind project which the CEL is working with," said Alexander Segovia, Technical Secretary of the Presidency.