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Panama’s Environmental Protection Agency, Agencia Nacional del Medio Ambiente (ANAM), levied fines totaling a million dollars in October 2008 against companies that are not in compliance with a 2000 clean water law. The 2000 law states that companies will recycle waste water or remove contaminants before releasing the water into the environment.

According to ANAM only 195 Panama companies covered by the law are in compliance. Sixty percent of the 2000 companies covered by the law are working on a solution but do not have complete pollution control systems in place. The rest of the 2000 companies apparently have made no effort at compliance.

Pollution in Panama

For years farmers in Panama “dry arch” from Los Santos to Chiriqui used large amount of commercial fertilizers, herbicides, and pesticides in producing the majority of Panama’s crops. The pollution for these farming practices contaminated ground water and the soil. During the years of military dictatorship there was little recourse for those who would complain of this pollution not to mention deaths and illness of farm workers from Paraquat. Since the overthrow of Manuel Noriega and the return of democracy to Panama environmental groups are working with farmers in Chiriqui and other farming locations to promote sustainable agriculture and organic farming.

The reduced pollution from improved farming techniques is welcome in Panama which not only derives it food from its soil but derives income from eco tourism to a largely pristine environment. As the fining of companies responsible for water pollution shows Panama’s ANAM is active in responsible governance. A recent World Bank study of governance issues shows that Panama ranks well in good governance. Part of the good governance equation is effectiveness of regulatory activity. ANAM’s fines for water pollution demonstrate active regulatory activity and good governance.

Living and Investment in Panama and Panama Pollution

For those who wish to take advantage of Panama’s easy residency requirements and live here ANAM’s anti pollution activities are welcome. For those making investments in real estate in Panama, whether residential or commercial real estate, pollution is a problem that reduces real estate value.

Panama’s actions to curtail pollution not only help keep the environment clean but also pollution control helps property values. Protection against pollution keeps Panama’s food supply safe also.

Panama has seen a steady increase in real estate prices over the last decade. Investment in commercial real estate, investment in pre construction condos, and investment in housing in general in Panama has generated nice returns. As the credit crunch in North America slows down the high end of the housing market other factors become more important in Panama real estate investment. The quality of governance in Panama, the control of pollution as Panama’s economy expands, and the health of Panama’s small business community are all positive indicators that investment in Panama will continue to do well.

If you have questions regarding investment in Panama real estate come to see us at ABPanama. We do business throughout Panama and have over 23 years experience managing real estate portfolios.