Government of Panama owes 200 million dollars to the construction sector
The Government of Panama has a debt of 200 million dollars with the construction sector in respect of progress of works and approved accounts, said the Panamanian Chamber of Construction (Capac).
In an interview published this Monday by the Panamanian newspaper La Estrella, the president of the Chamber, Jorge Lara, said that so far the Government has communicated to them that any project that has the budget item will be honored (its payment) of work progress.
Lara said that there is no defined plan in case the payment delay is prolonged and that they are in talks with some contracting entities.
In Panama, construction was one of the first economic activities to close last March due to COVID-19 and the ones that caused the most controversy, since it is one of the sectors that generates the most employment in the country, some 172,977 jobs until August 2019, and one of the hardest hit by the pandemic.
The Government authorized last August to continue construction projects with significant progress, but it was not until last week that the sector and its associates were able to restart work in its entirety, so it is expected that some 15,000 workers will gradually rejoin.
In 2019, construction only contributed 0.1% to Panama's Gross Domestic Product (GDP), presenting an unfavorable behavior, according to data from the Office of the Comptroller General of the Republic.
The economy will fall by 9%, according to government forecasts, as a result of the pandemic, which already leaves 101,745 infections and 2,166 deaths.
The Government devised a new plan for social de-escalation and economic reactivation, which began last Monday and ends on October 12 with the opening of international aviation and the lifting of curfews, provided that epidemiological indicators remain low at the same time.
Lara said that there is no defined plan in case the payment delay is prolonged and that they are in talks with some contracting entities.
In Panama, construction was one of the first economic activities to close last March due to COVID-19 and the ones that caused the most controversy, since it is one of the sectors that generates the most employment in the country, some 172,977 jobs until August 2019, and one of the hardest hit by the pandemic.
The Government authorized last August to continue construction projects with significant progress, but it was not until last week that the sector and its associates were able to restart work in its entirety, so it is expected that some 15,000 workers will gradually rejoin.
In 2019, construction only contributed 0.1% to Panama's Gross Domestic Product (GDP), presenting an unfavorable behavior, according to data from the Office of the Comptroller General of the Republic.
The economy will fall by 9%, according to government forecasts, as a result of the pandemic, which already leaves 101,745 infections and 2,166 deaths.
The Government devised a new plan for social de-escalation and economic reactivation, which began last Monday and ends on October 12 with the opening of international aviation and the lifting of curfews, provided that epidemiological indicators remain low at the same time.