EDC Facilitates Canadian Investment In Panama

by Leroy Baker, Tax-News.com, New York

27 September 2006

Export Development Canada (EDC), Canada's export credit agency, has signed a Memorandum of Understanding with the Panamanian government to facilitate Canadian participation in the future expansion of the Panama Canal and other large-scale projects in that country.

The MoU, signed on Monday, assists EDC in planning a multi-million dollar credit facility with Panama that will facilitate the purchase of Canadian goods and services for Panama's infrastructure development.

Key among these projects is the planned expansion and modernization of the Panama Canal, representing one of the world's largest infrastructure projects at an estimated cost of more than US$5 billion.

"EDC will help Panama finance projects that contribute to the social, environmental and economic fabric of the country," announced Robert Forbes, Vice-President of EDC's International Business Development Group, who on Monday signed the MoU with Samuel Lewis Navarro, First Vice President and Minister of Foreign Affairs of the Republic of Panama.

"Our participation will increase opportunities for Canadian exporters and investors in Panamanian transactions in areas such as water management, natural resources, transportation, energy and information technology," he added.

EDC said that it will work with Canadian companies and the Panamanian government to identify projects of mutual interest and offer financing.

Several Canadian companies have already invested in mining and engineering projects in Panama.

EDC acts as a direct lender in government-sponsored projects or works in partnership with other export credit agencies or financial institutions. EDC also offers finance and insurance solutions for Canadian investors and exporters working with the private sector in Panama.

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