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Caribbean & Central America - April 2012 (ISSN 1741-4458)

ECONOMIC OVERVIEW: PANAMA

Deal over hydro-electrics: Following the recent flare-up of unrest caused by President Ricardo Martinelli’s refusal to provide reassurances regarding hydroelectric concessions in the Ngäbe Buglé comarca (an indigenous political administrative region) [RC-12-03], on 17 March, the government reached an agreement with Ngäbe Buglé representatives. The deal provides for the cancellation of all mineral (mining) concessions in the comarca and establishes a special framework for the protection of minerals, water and other natural resources. This is in line with article five of a controversial bill (415), the omission of which had triggered the recent unrest. The agreement also states that: future applications for hydroelectric projects in the comarca and annexed areas must receive the backing of the Ngäbe Buglé authorities; inhabitants would receive 5% of the annual income earned by these projects; and at least a quarter of the workforce for the projects must be from the area.

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