The Secretaría Nacional de Energía (SNE, in Spanish) or National Secretariat of Energy is the national body in charge of the definition of policies for the energy sector, hence responsible of adopting the national policy on matters pertinent to hydrocarbons and electricity, as well as the policy of rational use of energy and the development of alternative sources.

Panama is a country that imports 100% of petroleum derived products and is therefore subject to price fluctuations of the international market. Fuel is principally offered by private companies that supply bunkers to vessels and/or fuel storage terminals.  The SNE regulates the price limit that these can offer in order to safeguard users. 

The SNE monitors the factors that affect the supply & demand of derivatives as well as crude oil, since these directly affect the price of the different fuels that are imported and distributed in Panama.  The body ensures that through Price regulation, adjustments be based on international variations as indicated by the import parity price formula established in Cabinet Decree No. 36 of 17 September 2003. 

In 1992, legislation was passed to liberate the crude oil market and establish Crude Oil Free Zones, creating incentives for the storage of crude oils and its derivatives. In 2003, the Ministry of Commerce and Industry of Panama and Chevron Texaco agreed to cancel a contract to operate a refinery, to convert it into a crude oil-free zone for the marketing and imports of fuels.  Panama, presently, has no refineries.  

Panama has terminals on the Atlantic, and Pacific coasts that offer the service of supply, storage and transfer of hydrocarbons.  Such include: Colon Oil and Services (COASSA), Decal Panama, Melones Oil Terminal, Panama Oil Terminal (POTSA), Payardi Terminal Company (Chevron), Petroamerica Terminal (PATSA), Petroport, Petroterminal Charco Azul, and Petroterminal Chiriqui Grande. 

For more information on government and fuel providers contact details, please see the following links: 4.1 Government Contact List and 4.7 Fuel Providers Contact List.

Information may also be found at: http://www.mytravelcost.com/petrol-prices/ which is updated monthly. 

Seasonal Variations

Fuel variations in Panama are the result, just as internationally, of the geopolitical conflicts associated with the world’s leading fuel producers and providers. In Panama, fuel prices are  expected to vary every 15 days.

Transport

Nationwide transport of fuel is composed by a network of private companies (national, regional or transnational) that supply the resource to different gas stations located throughout the country. Each company could manage their own fleet, nonetheless, the use of transport companies as an outsourced service for each gas station is the most common practice.

In addition, Panama has road regulations that represent restrictions to cargo transportation due to change in lanes during specific hours, and the traffic-jam in the city at peak hours.

Truckers, regularly have the ability to meet the demand for domestic fuel transport, nonetheless, when there are price fluctuations, speculations cause a spike in vehicle demand to meet operations.

Standards, Quality and Testing

The Ministry of Commerce and Industry of Panama is responsible for ensuring the quality of the fuel consumed by the Panamanian market through the technical regulation DGNTI COPANIT 71-381-2008 and the Directorate of Industrial Standards and Technology.  This regulation introduces the different methods for fuel quality testing approved by Panamanian law and which must be applied by the different laboratories for validation.

There are also government entities such as the ACODECO (Consumer Protection and Competition Authority) which safeguards the quality of products on the market, in this case fuel, conducting regular studies on fuel quality at supply stations. 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

The transportation market is varied inasmuch pricewise, as in speed, reliability and performance; and with the ability to meet the demand with excellent performance.  Currently there are some limitations for foreign transportation companies, specifically for on moving cargo in the Colon Free Zone. 

For more information on transport company contact details, please see the following link: 4.8 Transporter Contact List.

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

The Labor Code, in its Article 174, states that the minimum wage shall be fixed periodically, through Decree from the Executive Branch.  The minimum wage in force since January 15, 2020 is established by Executive Decree No. 424 of December 31, 2019, wherein the hourly rate consists of B/.3.24 for Region 1, and of B/.3.05 for Region 2;   from this rate onward the employer is free to establish the salary scales as per each position in its company. The regionalization of the minimum wage set by Executive Decree is by Districts, grouped into Regions.   

Region 1 corresponds to the District of Panama, Colon, San Miguelito, David, Santiago, Chitre, Aguadulce, Penonome, Bocas del Toro, La Chorrera, Arraijan, Capira, Chame, Anton, Nata, Las Tablas, Bugaba, Boquete, Taboga, San Carlos, Chepo, Guararé, Los Santos, Pedasí, Dolega, San Felix, Baru, Boqueron, Portobelo, Donoso, Santa Isabel, Santa María, Parita, Pese, Atalaya, Changuinola, Chiriquí Grande, Almirante, Tierras Altas, and Omar Torrijos Herrera. Region 2 considers the rest of the districts in the country.

Article 334 of the Labor Code, declares of public interest the constitution of unions as an effective means to contribute to the economic and social development of the country; popular culture and democracy. The main role of the unions, in compliance with article 357 of the Labor Code, are: to improve the working conditions of their members and to defend their interests; advocate the development of relationships between employers and workers based on justice, mutual respect; and collaboration focused on the conditions proper of activities and economic development. Unions also promote education of the unionized and promote the creation of industrial schools of professionals. 

The country’s workforce concentrates in the areas of development of the main industries, primarily in services such as hotels and specific key areas in the construction of residential homes and mega projects related to highways and transport, without undermining the recently developed mining activity. During this, and the forthcoming years, Panama will need to rely on approximately 68,000 employees with technical specialties.  The logistics sector will lead the demand, as per study achieved by the Labor Market Observatory of the Ministry of Work and Labor Development (MITRADEL, in Spanish).  The estimated demand for companies with technical staff is high, whereby the areas of logistics, trade, tourism, construction, industry and agriculture, are ones with the highest growth potential and will demand more human resources for the upcoming years.  

In Panama four out of ten companies are unable to find their ideal candidates the moment they so required. The main challenges are:  the gap between skills of individuals willing to work versus skills sought by companies; as well as the unbalances in the system for developing work and life skills.  In the national corporate community, many times they find greater customer-service skills in the foreign workforce than in Panamanian personnel. Additionally, due to the extent of the technical specialty required at times, it is difficult to locate enough capacity in the local market, which leads to the hiring of foreign labor. The Panamanian human resource, mainly the youth find it difficult getting hired, for despite of being academically prepared they have deficiencies in the development of soft skills.  Concerning this last point, MITRADEL is reinforcing such, with several programs, strategies and projects through the Employment Directorate, i.e. the project termed “Learn-By-Doing”, which seeks to strengthen soft skills for life and work. 

*Daily general worker - (informal unskilled work) Hand or Helper 

In Panama, there is a great variety of companies that offer stevedoring services. Most of these are in the metropolitan region due to the volume of cargo generated by main logistics assets.

Overview

Major telecommunication companies have installed their Network Operations Centers in Panama, availing the comparative advantage of Panama’s geographical position and the abundant supply of submarine fiber optic communication circuits on both coasts, making interconnection possible with North America, Latin America, Asia, Europe, Africa, and the entire world.   The seven submarine fiber optic cable system that converge in the country interconnect with the region through the project Central American Electrical Interconnection System (Siepac, in Spanish), and with the Central American fiber optic trunk line better known as RedCA or Central American Telecommunications Network.   

Likewise, telecommunications service operators have deployed extensive infrastructure networks throughout the country, which has allowed a penetration of internet users, as well as mobile cellular users at 70.3% and 96% respectively.  It is an extensive mobile network typically made up of redundant tower and wireless systems (microwave and fiber) that interconnects them, of which operators (private) are supplied to provide their services nationwide. 

Similarly, at a State level, there are microwave networks (backbones) deployed to the main transmission sites of the country for matters of public security (Ministry of Security and Police) and broadcasting (State Broadcasting System –SERTV, in Spanish). 

Telecommunication service operators offer their data plans to customers through their web pages and by means of traditional advertising. 

Private Sector

Telecommunication services are authorized to be operated commercially or for their own purposes.  In this sense, presently, in operation are found 223 concessions for commercial use granted by the National Public Service Authority (ASEP, in Spanish) for different telecommunication services.

For more information on telecoms contacts, please see the following link: 4.11 Additional Services Contact List.

Telecommunication Regulations

Telecommunications in the Republic of Panama is a public service and is regulated by Law No. 31 of 8 February 1996.  The law establishes the separation of regulatory and control operations that come under the Regulatory Body and those related to use and operation of telecommunications services.

Law No. 31 establishes that the Public Service Regulatory Body, currently ASEP (National Public Service Authority), has the purpose of regulating, ordering, supervising and effectively standardizing, among others, the operation and administration of the telecommunications services in the country.

Similarly, the public services of Radio and Television are found regulated through Law No. 24 of 30 June 1999, which establishes the legal and technical basis for the operation of these services, and additionally cites the functions that the National Public Service Authority shall have as a regulatory body in this matter. 

ASEP, through the National Telecommunications Directorate, aims to regulate, order, supervise and effectively standardize the operation and administration of the telecommunications services, including radio and television, as well as radio-electric domain; which is stated through the resolutions issued in conformance to the legal provisions that regulate this matter.   

Existing Humanitarian Telecoms Systems

Article 18 of the Executive Decree No. 73, requires concessionaires of basic telecommunications services to establish a Contingency Plan for the rendering of the essential communications services, and the transmission of emergency messages in case of international warfare, internal commotion, natural disaster, public calamity and/or stoppage of public services.  The Contingency Plan is placed for approval by the Regulatory Body, which must be updated periodically by each concessionaire

Contingency Plans are submitted confidentially and are not publicly disclosed.  

The “Pilot Project for the placing an alternate regional emergency telecommunications network in the Americas,” is found aligned with these purposes.  In 2019, the National Civil Protection Service (Sinaproc, in Spanish), received in donation an Alternate Telecommunications Network termed “Winklink” from the International Telecommunication Union (ITU).  Such consists of a global messaging system for emergency communications and message repetitions when there is no internet access due to disaster.  Such uses radio frequencies for the purpose of providing services such as e-mail, HTML templates, update reports and weather bulletins.  The equipment was installed by technicians from the National Public Service Authority (ASEP), Sinaproc and the ITU, at the headquarters of the Regional Logistics Center for Humanitarian Assistance (CLRAH, in Spanish), at the building assigned to SINAPROC.  The “Winklink” team is managed by SINAPROC.    

Internet Service Providers (ISPs)

Only companies with ASEP concessions may provide internet service for public use.  The regulations in force concerning the Internet Service for Public Use establishes the obligation, of the concessionaires of this service, to divulge updated information concerning the bandwidth offered and price.

Mobile Network Operators (MNOs)

Mobile operators do not have their own platforms to manage mobile money services. The regulatory requirements that could affect the use of the mobile money at the national level are linked to the Superintendence of Banks through Agreement No. 006-2011 of 6 December 2011, which places guidelines on electronic banking, and related risk management. 

For information on MNOs please visit the GSM Association website. 

The Ministry of Agricultural Development, through the reports from regional agricultural coordinators has a coverage of 210,929 hectares planted, 30,001 producers with 64 crops developed through different production technologies. Notwithstanding, there are items that are considered to be of greater economic impact due to the destinations of their production (internal and external market).  Such 31 items are grouped into categories and subcategories.     

Below are production indicators for the main items:

Detail of Products in each subcategory:

• Basic Grains: rice, cornsorghum, kidney beans, bean and pigeon peas.
• Roots and Tubers: Manioc, Malanga or Xanthosoma, yam and eddoes.
• Cucurbitaceaes: pumpkin for export, pumpkin for local consumption, cantaloupe for export, cantaloupe for local consumption, watermelon for export, watermelon for local consumption and cucumber.
• Garden Produce: Potatoes, onion and industrial tomato.
• Industrial Crops: sugarcane, palm oil, coffee and cocoa.
• Fruit Crops: pineapple, plantain, Persian lemon, orange, papaya, avocado, and soursop.

It is important to mention that the tendency during the last couple of years, leans towards the imports of food, which has provoked a decrease in the agricultural areas of the country.

For 2019, exports, as per the FOB value with the greatest volume were the items of watermelon, banana, cantaloupe, coffee, wood and seafood products.  

The Observatory of Economic Complexity – MIT (OEC): https://oec.world/en/profile/country/pan/

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

4.11 Additional Services Contact List.

Accommodation

As per the National Institute of Statistics and Census, for 2019 at hotels located in Panama City were counted 10,205 room units at the end of the period, with a percentage of housing occupancy of 45.6%.

Electricity and Power

The main source of electricity in Panama is hydroelectric (reservoir and pass projects) followed by thermal (natural gas, coal, and petroleum derivatives projects).    Electricity generated fromrenewable sources (solar and wind) has a smaller participation, which has been increasing during the last five years.

Participation of Energy Sources, year 2018 (Energy Secretariat)

Electricity generation is a private activity, under the market concept.  Nonetheless, there are five generation projects with the participation (holds 51% of shares).  The energy market is regulated by the National Government, through the National Authority of Public Services (ASEP, in Spanish).The country has sufficient energy production to satisfy local needs, with an installed power generation capacity that exceeds the requirements of national demand.  During the end of May 2019, the National Interconnected System had 368233 MW installed and an approximate maximum demand of 1907 MW (excluding self-consumption of the Panama Canal Authority) on May 2, 2019. 

Electricity is only imported, when required to cover differences between local generation and national demand.  The decision to import is by order of merit, meaning, that electricity is imported when international prices are lower than the next local generator that could be called to dispatch.

Panama is part of the Regional Energy Market that connects the countries of Central America, through the SIEPAC (Central American Electrical Interconnection System).  Daily, energy transactions take place between the countries integrated in the network.  The imported energy annually equals to 0.12% of electricity production (base year 2018).   

The national power grid expands to remote locations. The average percentage of electricity access coverage in the country is of 94.5% and in rural areas it has been increasing from 61.7% to 78.5% since the year 2009 to date.  Lesser percentage of coverage is in the areas of the comarca indigena, which are the administrative regions with substantial indigenous populations. This expansion to the rural areas has been achieved through projects and programs of the Office of Rural Electrification (OER, in Spanish), a dependency of the Ministry of the Presidency, but with partial autonomy.

In terms of rationing, blackouts at a national level are not common.  Only two rationing periods have occurred during the last decade, mainly during the dry season (years 2013 and 2014).  The rationing action does not involve programmed power cuts, but rather the use of certain consumption equipment for periods of time.As to faults in the system, the frequency and duration of such are governed by the system reliability rates defined by the Energy Sector Regulator (ASEP, in Spanish), and blackouts occur throughout the year.

Panama’s electric power system handles different voltage levels, as per the activity of the electricity sector. Following, the typical values: Generation: 13.8 kV; Transmission: 115 kV, 230 kV; and Distribution: 13.8 kV, 34.5 kV.

Financial Service Providers

In Panama, financial activities are regulated by laws and public institutions, with an extensive range of banks, cooperatives, pawnshops and other financial services.  Financial services in the country are adapted to supply markets with little purchasing power and stability, till large capital investments.

Clearing and Forwarding Agents

Cargo agents and Customs brokers are available to meet the national demand, and the market is very competitive.  The service includes all the needs and prices, which vary according to requirements.

Construction and Handling Equipment

Pallets are mostly made of wood.  Formal local production is inexistent, hence they are rather handcrafted in artisanal way based on recycled or reused wood.

Postal and Courier Services

At the national and state level is COTEL (Panama Posts and Telegraphs) with 115 years in operation, which has a vast postal network, with over 110 service points, providing parcel and courier services.  The Courier market also includes private companies with nationwide coverage for delivery, reception and parcel delivery to the main cities in the country. There is also an extensive coverage of companies dedicated to the international delivery and dispatch of documents and parcels.

Taxi Companies

Panama, during recent years has had a high demand in taxi patronage through mobile apps, both foreign and Panamanian, and is used extensively in the capital city. . The independent taxi service is also in use for mobilization within the city and the outskirts of the capital.   

Vehicle Rental

There is availability for all types of cars.  This capacity concentrates majorly in the capitals of the cities, throughout the country.

Waste Management and Disposal Services

In 2010, the Authority of Urban and Residential Sanitation (AAUD, in Spanish) was created, and initiated operations in the District of Panama. It subcontracts third parties on occasions for the garbage collection that takes place on specific days of the week, depending of the district or province. 

The collection is achieved by:

• Public Body: Municipality, if the service is being carried along by the entity itself or another type of public body such as the AAUD in the case of the District of Panama.
• Concession: For those cases in which the Municipality has subcontracted said service to a private company for its achievement.
• Civilian or Private: Individual Companies that, without a concession from the city council, are undertaking this service hired directly by the citizens, or it is the citizens themselves who are in charge of the garbage collection in a singular fashion.

Panama does not have a final or temporary disposal infrastructure unit, neither of waste treatment nor segregation, therefore, all the garbage collection (be it through the Municipality via concession or individually) are sent directly to the city’s landfills (it received domestic, as well as commercial and industrial waste).  The condition of the landfills is inadequate and presents environmental and public health risks.

At the private level, there are recycling programs, through NGO’s, environmental responsible companies and communities; however, there is no national recycling program. 

As to residential water collection and treatment, currently existent is the Panama Sanitation Program, with the purpose of cleaning up rivers and streams (this excludes garbage collection). 

Waste Disposal Non-Hazardous

At the moment, Panama does not have a public policy that promotes collection, recycling, as well as responsible and adequate disposal.

Waste Disposal Non-Hazardous

The procedures and the process for the hazardous waste disposal will depend on the composition of the waste.  The initial processes begin from hazardous waste generators, these must primarily classify their waste for transport purposes and must likewise provide a Safety Data Sheet.  If the classification is for hazardous waste, what follows is a segregation by hazard type and temporary storage, for its subsequent inertization or blanketing, stabilization or final disposal in a Safety Container. 

Concerning the restrictions for the elimination of used motor oil and its derivatives, the Republic of Panama has Law No. 6 of 11 January 2007, which establishes the regulations to handle appropriately petroleum products waste, such as hydrocarbon derivatives or synthetic based derivatives in the national territory.   More so, through Law 1672 of 19 July 2013, protected by the Ministry of the Environment that establishes the legal provisions for the adoption of a public policy for the comprehensive waste management of electric and electronic equipment (RAEE).  In said legal provisions are found the restrictions before the handling and disposal of these waste materials.

There are also legislations that regulate the discharge of wastewater, meaning grey water originating from its generator.  These are the regulations DGNTI-COPANIT 35 Water Quality, Liquid Effluents Discharge to Bodies and Masses of Continental and Marine Waters; and Regulation DGNTI-COPANIT 39 Water Quality, Liquid Effluents Discharge Directly to Water Collection Systems.  The sludge generated from the treatment plant is regulated through regulation DGNTI-COPANIT 47, Use and Final Disposal of sludge.

Treatment for the disposal of hazardous waste by Pharmacy and Drug

The interested party requests before the National Directorate of Pharmacy and Drug of the Ministry of Health, the final disposal of pharmaceutical waste, through a form destined for such purpose, which may be downloaded from the following website:

 http://www.minsa.gob.pa/sites/default/files/publicacion-general/destruccion_-_solicitud.pdf

Payment must be made as per the service rate established in the Executive Decree No. 95 of 14 May 2019, Article 5.  State institutions are exempted from this payment.

The request is forwarded to the Department of Quality Systems Auditing of Pharmaceutical Establishments, specifically to the Inspections Division. A date is scheduled with the interested party to perform an inventory on-site.The form and a copy of the Inventory Deed is forwarded to the Sub-Directorate of Environmental Health of the Ministry of Health and the waste management company. After the subdirectorate evaluates the case, the National Pharmacy and Drug Directorate proceeds to schedule a date with the interested party for final disposal.  

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.