A Government city

PANAMA. As news was released on Thursday or a precipitous fall of over 52 percent in construction industry permits for May, and the loss of 8000 jobs, the government introduced a gleam of light, as it announced the possibility of the construction of a new government center.

The motivation is money. The State pays up to $30 millions in rent yearly for buildings scattered throughout the city.

Martinelli's cash saving idea is not new; but it did not receive much attention from previous adminsistrations There were talks about building the government city in Albrook or Howard, but now the idea is looking at Calidonia and Curundu because besides lowering rent expenses, the objective is to revitalize this economically depressed area and thus generate employment. The new buildings would occupy lots from the National Bank, the Mortgage Bank, the Social Security (CSS) and the Housing Ministry.

The subject has already been analyzed at the Cabinet Council and though the cost hasn't yet been established , it will be included in the next budget. The plan is to request a credit to build the project that would be paid yearly with what the government pays now in rent. The president of the Panamanian Construction Chamber (CAPAC), Jaime Jovane praised the initiative because mega-projects like this will help reactivation the sector. Vice minister of Economy Frank De Lima said the project will be completed by the end of this administration.