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A new hydroelectric facility will be started on the Chiriqui River in Panama in 2009. The project will cost $150 Million USD and expected to net $25 Million USD a year when in operation. The operator has a fifty year operation franchise for the hydroelectric facility. When an international power plant builder and operator makes such an investment in Panama we can assume they expect a healthy return on investment for the duration of their franchise. This investment confirms the belief that Panama’s economy will continue to grow and require substantial amounts of electric power for years to come.

According to a press release by Kardan on the Globes web site one of Kardan’s subsidiaries has signed two ten year power purchase agreements in Panama. These agreements allow Hydro Caisan SA to start construction of a $150 Million USD hydroelectric facility with completion expected in four years. The Chiriqui River in Panama already has hydroelectric facilities in operation or under construction.

According to the Globes press release Kardan owns Tahal Group International BV ninety percent of whose business is water and sewage systems. Tahal Group International BV owns 86.5% of  Hydro Caisan.

A Hydroelectric Facility and Investment in Panama Real Estate

Power companies invest for the long term. The franchise for the Kardan hydroelectric facility is for fifty years. Thus Kardan expects to make money on its hydroelectric facility with no substantial downturn in power requirements for two and a half generations.

Investment in Panama residential real estate has done well for a decade but the high end has leveled off due to credit problems in North America not to mention most of the world. What have not leveled off are investments in Panama’s infrastructure with such projects as the Panama Canal Expansion, Panama’s road improvement programs, and the potential oil refinery in Chiriqui at Puerto Armuellas. The expansion of truly available credit to Panama’s small businesses may be the most important factor is Panama’s long term growth. And these folks lease commercial real estate.

Commercial real estate investment will prosper with Panama’s economic growth no matter how many or how few new North American retirees buy real estate in Panama. Panama’s increasingly wealthy middle class as well as the middle class of much of Latin America is set to spend more. That spending will further drive growth and economic prosperity. As Panama makes more and more free trade agreements it integrates itself into the ever expanding free trade areas of Latin America. More option for trade will help insulate Panama from economic downturns in Europe, North America, or Asia.

Investment in Panama does not require an international corporation. Investment in Panama does not require that you learn all of the local business laws and regulations nor that you wait in line to fill out papers and register your business. Targeted investment in Panama real estate using the services of a knowledgeable firm such as ABPanama will put you where Panama’s grow is and where its prosperity will lie over the years.

Perhaps looking at where the power grid will be for the new hydroelectric facility on the Chiriqui River will help you choose where to buy real estate for commercial investment.

If you are interested in targeted real estate investment in Panama come to see us at ABPanama where we have over 23 years experience managing real estate portfolios. We do business throughout Panama and would be pleased to help you decide where to target your investment in Panama real estate.