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Panama imports all of its oil. We are getting a breather right now with cheap oil but it will not last. Panama has $2.2 Billion with of hydroelectric projects in construction or on the drawing boards. Now we hear that projects in the works are having trouble getting local funding. To the extent that banks have the money and are being cautious that is shortsighted.

The press reports that hydroelectric projects currently have to look for money outside of Panama in order to fund construction. It is understandable with a world wide recession that Panama’s traditionally conservative banks are being tight fisted. However, the price of oil will not stay down forever. Already Chinese economic data shows record imports of refined copper (consumer electronics) and iron ore (everything up to super tankers). Industrial production is getting ready to gear up and the recession will not last forever. As China, India, the USA, and Europe recover so will the cost of imported oil. Panama would be well served to keep building environmentally safe hydroelectric dams.

Other Aspects of Hydroelectric Power

According to old figures from 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.” This was said before the drop in oil prices. However, it applies going the other way too.

Environmental spokes persons say 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.

Panama Real Estate and Hydroelectric Power

There are two issues here. First, more power from hydroelectric will help keep the cost of electricity and cost of living down in Panama. Panama’s real estate boom from around 2000 started with a low cost of living in Panama. Anything that keeps inflation away will help real estate in Panama.

The other issue is the environment, the environment where you live. We read in the press about people in the interior complaining about their property being damaged by some government project or other. That could be you! It is important when dealing business or real estate in a foreign country to have a bilingual advisor. ABPanama is bilingual and has over 23 years experience managing real estate portfolios. We keep up with local events where we are managing property. Our job is to keep you from building a home down steam from a mining operation, next door to a cement plant, or where a hydroelectric dam will flood you out in the near future.

Although we look at the big picture it is the small picture that concerns us. We will do our best to get you into the best home in Panama at the best price and we will watch out for your interests all the way.