Panama Pacifico

Panama Pacifico. It is a large-scale, mixed-use special economic area and master-planned community developed on the site of the former Howard Air Force Base in Panama City, Panama. The project is a public-private partnership between the Government of Panama and the international investment group London & Regional Properties. Envisioned as a strategic hub for logistics, technology, and residential living, it operates under a special legal framework designed to attract foreign investment and multinational corporations.

History

The history of the area is deeply tied to the former Howard Air Force Base, a key United States military installation operating under the Panama Canal Treaty of 1977. Following the implementation of the Torrijos–Carter Treaties, the base was officially handed over to the Government of Panama in 1999. In the early 2000s, the Panamanian government, seeking to catalyze economic growth, passed **Law 41** in 2004, which established the special regime for the Panama Pacifico area. This legislation aimed to transform the decommissioned base into a premier investment zone, leading to the selection of London & Regional Properties as the master developer through an international tender process managed by the Ministry of Economy and Finance.

Development and Master Plan

The master plan for the development is designed as an integrated city, dividing the expansive area into distinct precincts for business, industry, logistics, and residential communities. Key zones include a modern **business park** attracting corporate headquarters, a **logistics park** leveraging proximity to the Panama Canal and Tocumen International Airport, and residential neighborhoods such as **Costa Verde** and **Altos del Pacifico**. The plan also incorporates substantial retail spaces, hotels like the Wyndham property, and educational facilities including the Metropolitan School of Panama. The architectural and urban planning guidelines emphasize sustainable design, walkability, and the preservation of green spaces within the former airbase's footprint.

Economic Impact and Free Zone

Operating as a **special economic zone**, it offers significant fiscal incentives and a streamlined regulatory environment administered by the Panama Pacifico Agency. Companies established within the zone benefit from tax exemptions, simplified labor regulations, and efficient customs procedures under the **Panama Pacifico Free Zone** regime. This has attracted a diverse portfolio of over 400 companies, including major multinationals like Dell Technologies, Caterpillar Inc., 3M, and Visa Inc.. The zone has become a pivotal hub for **logistics**, **call centers**, **regional headquarters**, and **high-tech manufacturing**, contributing substantially to foreign direct investment and job creation in Panama, rivaling other established areas like the Colón Free Trade Zone.

Environmental Considerations

The development has incorporated several environmental initiatives, partly in response to the area's location near important ecological sites like the Panama Bay and the Camino de Cruces National Park. Projects include the protection of wetlands, reforestation efforts, and the establishment of biological corridors to maintain local biodiversity. Sustainable building practices are encouraged, and the master plan allocates a significant portion of the land as protected green space. These measures aim to balance rapid urban and industrial growth with the conservation of the region's natural heritage, aligning with broader national environmental policies.

Transportation and Infrastructure

The site boasts exceptional multimodal connectivity, a key factor in its economic appeal. It is strategically positioned between the **Panama Canal** and the **Panama City** metropolitan area, with direct access to the **Arraiján-La Chorrera** highway corridor. The development includes its own **Panama Pacifico International Airport**, a refurbished facility capable of handling cargo and executive flights, enhancing its logistics profile. Proximity to the major ports of Balboa and Cristóbal, as well as the **Panama Canal Railway**, provides seamless intermodal links. Internal infrastructure features modern utilities, fiber-optic networks, and well-planned road systems integrating the residential, commercial, and industrial sectors.

Category:Special economic zones Category:Panama City Category:Urban planning in Panama