The country has transformed into one of the most important business centers in the continent, with great tradition in areas such as Banking, Finance, Service, Logistics and Commerce, which along with political and economic stability, have placed it as one of the most attractive destinations for investment.
The Inter-American Development Bank (IADB) and The Economist performed a study in which they recognized Panama as an economy with favorable conditions for establishing Public Private Partnerships (PPP), understanding these as arrangements between the private and public sector.
The study highlights that Panama has all the necessary characteristics to obtain both foreign and local investment.
Furthermore, it points out that if these types of investment projects were to happen in Panama, there are high possibilities that their execution would happen in an appropriate and continued manner across time.
Scoring
The study evaluated multiple economies in different countries and Panama ranked seventh among the ten best economies.
From the government’s point of view, they seized the opportunity to emphasize that the evaluation arrived at just the right time when the government has undertaken actions to contribute to Panama’s consolidation.
Regulations
Likewise, through a press release, the Panamanian government informed about the approval of a Law decree that will create a regulatory framework for the development of the PPP’s in Panama. This initiative was enacted during the month of September.
In response to the approval of the initiative, President Cortizo referred to the creation of new jobs and economic growth, highlighting that specialized public assessment means a recognition to the benefits of the country regarding its capacities to attract foreign investment.
PPP performance
The study performed by the IADB and The Economist took into account five different categories to determine the mode in which the PPP’s performed in the countries in the region.
They also evaluated the impact that these types of business structures have, where both the State as well as the private sector participate. Likewise, the growth of the Gross Domestic Product (GDP) regarding its impact on PPP’s was considered.
PPP Law
The recently sanctioned law aims to have objectives that support the growth of the country and the upturn of foreign investment within Panama.
For example, it is presumed that the implementation of the PPP’s will decrease the amount of time in which infrastructure projects are completed.
Additionally, it aims to reduce costs and aims to distribute risks more efficiently as well as an increase in quality of major public services.
In summary, by implementing PPP’s this will allow the execution of State projects with private capital and the development of investment projects that promote the growth and improvement of quality of life for residents in Panama.
This information was developed by Panama Living, a digital platform committed to collecting, researching, and disseminating all the necessary information to turn your interest in Panama into a pleasant and enriching experience.
