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A multi-billion dollar regional development plan entitled Plan Puebla Panamá (Puebla-Panama Plan in English) was initiated in 2001 by Mexico, all of the Central American countries, and Colombia. The purpose of Plan Puebla Panama is to "promote regional integration and development" of Mexico's nine most southern states (including Puebla) as well as Guatemala, Belize, El Salvador, Honduras, Nicaragua, Costa Rica, Panamá, and Colombia.

The method proposed for Plan Puebla Panamá is to fund integrated infrastructure projects throughout the region. The belief is that doing so will facilitate more and more efficient trade among the member states. The immediate focus of the plan is and will be highways, airports, and port facilities, as well as telecommunication and electric grids.

The eight initiatives of Plan Puebla Panama include the following:

. Energy Sector Integration

. Transportation Integration

. Telecommunications Integration

. Trade Facilitation

. Sustainable Development

. Human Development

. Tourism

. Disaster Prevention and Mitigation

Five distinct geographic areas are the primary focus of Plan Puebla Panamá.

. The Pacific corridor all member states, where the majority of the region's trade takes place

. The Gulf of Honduras, in order to develop trade between the Pacific and the cities in the Caribbean region

. Petén, between Puerto Cortés, Honduras to Villahermosa, Mexico

. Mexico, the Isthmus of Tehuantepec.

. Guatemala and the Yucatán

Funding

As of 2005 $7.7 billion (US dollars) had been funded for Plan Puebla Panama and the eventual investment is expected to reach $50 billion. This is according to figures from InterAction a US based nonprofit agency. Funding percentages are projected as follows:

Plan Puebla Panamá Funding Percentages

Much of the information for this article was taken from Wikipedia. See the website address at the end of this article.

Current PPP News

According to Business News Americas the Interamerican Development Bank (IDB), the Andean Development Corporation (CAF) and the Central American Bank for Economic Integration (Cabei) have reiterated their agreement to help member countries of Plan Puebla Panamá promote projects and obtain funding. A funding and promotion committee from these three agencies was formed at the IDB annual meeting in Miami in April of 2008.

Business News Americas quotes Enrique García, executive president of CAF, as saying that PPP's integration projects are a major focus of his and the other institutions. He continues to say that integration of highways, electric and telecommunications grids as well as other PPP projects will enhance overall prosperity and social equality as they make the region more economically competitive. By reducing costs and timelines these projects will attract other, private, investors and funding for PPP. The agencies believe that promoting and supporting PPP through concession initiatives and public-private partnerships will help advance PPP's work. Mr.García also notes that CAD will help support studies regarding environment impact prevention in order to make these development projects sustainable. The financial agencies will also support feasibility studies to help attract external funding, along with private investment.

As infrastructure improvements continue in Panama and throughout the region expect sustained growth, return on local investments, and increasing economic prosperity. Panama continues its own infrastructure improvements such as the inter-oceanic highway connecting Panama City and Colon. Watch the progress of this project and the resulting economic development, especially around Colon.

ABPanama will continue to follow the progress of Plan Puebla Panamá and its effect on life and investment in Panama.

Plan Puebla Panama

Business News Americas