Thanks to the efforts of Ente, the competition watchdog, deregulated utilities are at the forefront of development
he
liberalisation of the economy has transformed Panama’s public services
in the past few years. Foreign investment has poured into hydro power
generation projects to help keep up with burgeoning electricity demand.
The UK’s Cable & Wireless has modernised and upgraded the telecommunications
infrastructure, after it acquired a 49 per cent holding in state operator
Intel in 1998. This has paved the way for more competition in fixed-line
services and, within a few years, new mobile licences will also be awarded.
Ente
Regulador de los Servicios Publicos (Ente) is the independent
body charged with stimulating competition and safeguarding the public
interest in these core areas. It also oversees other essential services,
such as water, radio and television.
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Alex
Anel Arroyo, Ente’s president director, says the
opening of the telecoms sector to competition in areas such as local
and international calls will bring multiple benefits, including new
technologies, new services and lower call rates. But he insists that
2nd January 2003, which marked the end of the Intel monopoly, is just
the start of a long journey towards an open and competitive telecoms
market. “The process starts, it does not end,” he says.
With the best telecoms infrastructure in the region and favourable tax
legislation, Panama is well placed to develop opportunities such as
call centres and data processing. “We think Panama has all the
necessary elements for a successful call centre industry,” he says.
Established in 1996, Ente has been a major factor in Panama’s ability
to attract inward investment from some of the world’s leading companies,
the likes of Spain’s Union Fenosa and AES Corporation of the US.
“We do not promise what we cannot deliver,” says Mr Arroyo.
“Information is clear and transparent. Ente has played an important
role in this respect.”
| Foreign investment is opening up new opportunities under the oversight of the regulator |
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Investment
in the country’s infrastructure has reinforced its position as
a key regional business centre. Long a strategic gateway between the
world’s two largest oceans, Panama is looking to play a future
role as the capital of Pan-American business under the Free Trade of
the Americas (FTAA) agreement. After serving as the temporary home of
the organisation, Joaquín Jácome, minister of commerce
and industry, believes there is every chance the country can become
the permanent base. It would represent a major vote of confidence in
Panama and generate substantial benefits for the economy.
“The security, political stability, low inflation,
high quality of life, excellent communications, port infrastructure,
airport, its geographic location and its ability to provide services
make Panama the perfect candidate to house the FTAA’s permanent
headquarters,” Mr Jácome says.
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