Hydro Electric in Panama; Real Estate Investment Thoughts and Environmental Concerns

GDF Suez plans to start construction of a hydro electric project on the Chirqui River in Panama with a capacity of 280 Megawatts. The project is meant to reduce the fluctuation in energy prices due to high petroleum costs. GDF Suez has already signed contracts for 100 Megawatts with power companies. GDF Suez already has a 51% stake in a thermoelectric plant at Bahia Las Minas built by Cicsa, Panamá, S.A. which is partly owned by Carlos Slim a wealthy Mexican investor. Expect more hydro power in panama.

The Bahia Las Minas plant is ready to operate according to a March issue of La Prensa. The Panama government makes the point that hydro power is clean and protects against high fuel costs.

Quoting La Prensa, “Panama's government has Okayed 21 projects that have either already started or are in the final phases of approval. Yet there has been plenty of opposition to them. Farmers, environmental groups and indigenous leaders have opposed these projects because of the environmental damage they will case. This includes flooding vast tracks of watershed to power the projects and impacting water flow in areas downstream from the dams.”

A government spokes person stated, according to La Prensa, that, “There is no guarantee that oil prices will go down. And we had better be protected if they keep going up.”

Yakarta Ríos, a spokesperson for Consumo Ético, said that money isn't the only part of the equation, and that the government has to ensure that rivers remain the public domain, and not the property of [Panama’s] hydro companies.

Other energy companies active in Panama include Compagnie du Rhone, Tractebel Engineering, Coyne et Bellier and Technum.

Energy Companies and Panama Real Estate Investment

When investing it is wise to do your home work. It is also wise the check the results of others’ homework. Several international companies are building and operating power plants in Panama. These folks do not invest money with expecting to make money. In the electric power business that means these companies expect growth of power usage based upon growth of the economy in Panama. The cost of living in panama still remains attarctive.

There is talk of a real estate bubble in Panama after a ten year run up in prices. There is also a steady economic expansion in Panama that is unlikely to taper off for years to come. That’s what the folks who build those power plants think. The power business takes long term planning to be successful and companies such as GDF Suez tend to be successful.

Investment in Panama Commercial Real Estate

If a bubble is about to burst in Panama real estate it will likely resemble the drop in home prices in Costa Rica where credit tightening in the USA has forced second home owners to sell their Costa Rican property. On the other hand commercial real estate in Panama is tied to Panama’s commerce, strong employment, and strong business investment. Panama retains the highest rate of foreign investment per capita of any Latin American country because commercial real estate investment here tends to succeed.

We suggest that investors look into investing in commercial real estate in Panama for the long, prosperous haul.

If you have questions about Panama real estate investment come to see someone with more than 23 years experience managing real estate portfolios, ABPanama.

Disclaimer: The properties listed on this website are for information purposes only and all information is presented in good faith, But not guaranteed.
ABPanama Is a licensed real estate broker in Panama.