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

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.

New Panama Canal Administrator: On 9 March the Panama Canal Authority (ACP) Board of Directors named engineer Jorge Luis Quijano as the new Panama Canal Administrator. He takes over from Alberto Alemán Zubieta whose second eight-year term expires on 3 September. Quijano’s appointment has been well received across the political spectrum in terms of representing institutional continuity within the ACP, the autonomous agency of the government that manages the Canal, rather than political patronage. Having begun his professional career at the Panama Canal in 1975, Quijano was promoted to Maritime Operations Director in 1999 and, since September 2006, has served as the Executive Vice-President of the Engineering and Programs Management Department in charge of the US$5.2bn Panama Canal Expansion Program. While the expansion plan is due to be completed in October 2014, Zubieta admitted last month that there had been a seven-month delay in pouring cement (which should have begun in January 2011 but didn’t start until July) due to the fact that the mixture did not have the right specifications. This has raised questions as to whether the expansion plan will be completed on time.