The President of the Republic, Laurentino Cortizo Cohen, informed the country about the progress in the process of the new Contract Law between the State and the company Minera Panamá SA and announced that 50% of the minimum annual income from copper extraction will be for the IVM of the Social Security Fund and so that no retiree or pensioner receives less than B/. 350 monthly.
Cortizo Cohen, through a message to the nation, explained that the Executive Branch already has the draft Contract Law that will be presented to the Minera Panamá company and added that once the Contract Law is signed by both parties, it will be sent to the National Assembly .
He explained that the minimum annual income of B/. 375 million in royalties and income tax are important.
The Chief Executive explained that as of this year, 50% of the annual minimum income, around B/. 190 million will be destined for the Disability, Old Age and Death Program (IVM) of the Social Security Fund.
“By allocating these resources to the IVM program, retirees and pensioners will have the peace of mind that their payments are guaranteed,” he said.
While 20% of the minimum annual income will be allocated so that no retiree or pensioner from the Social Security Fund receives less than 350 balboas per month.
As of December 31, 110,675 people who will benefit are registered in Panama.
For its part, 25% of the annual minimum income will be allocated to the districts of Donoso, Omar Torrijos Herrera, in the province of Colón and Areas adjoining the project.
He explained that of these income a minimum of 95% will be allocated to investment projects and only up to 5% for operation.
Cortizo Cohen stressed that for the management of these funds a trust will be established to be called the “Conquest of the Atlantic Trust”.
“The identification of investment projects will obey a Master Plan formulated by the Ministry of Economy and Finance (MEF) with participatory planning of local governments, with their respective organized communities, to bring solutions for: electrification, water treatment plants, rural aqueducts, highways and roads, hurdles and fords, health posts and centers, hospitals, schools, colleges, Early Childhood Comprehensive Care Centers (CAIPIS), airfields, community docks, sports infrastructure, community housing and Internet for All”, he highlighted.
He also said that the Technological University of Panama, together with the corresponding national government institutions, will prepare the technical specifications of the projects. Additionally, the UTP will advise and supervise the works with a team of experts in project management.
From this 25% of income, a fund will be established for scholarships abroad, the University of Panama and the Technological University of Panama. This includes resources for technical job training.
He also reported that 5% of the annual minimum income will be used for the creation and operation of the Institute of Studies for the Improvement and Well-being of Teachers, with the aim of updating the theory and practice of teaching in our classrooms and at the best levels of the region.
The National Government considers that under these conditions the Contract Law with Minera Panama will regulate the operation in that mine in an orderly manner in accordance with national laws and codes with strict environmental measures with security and stability for the workers, ensuring for Panama fair income and direct benefits for the Panamanians.
