Tuesday, February 13, 2007

Howard development Panama

I have noticed that traffic is coming to my blog from google searchs about Howard development project. Since L&R won the licitation there are great expectations.

Case Study

Client Name: Panama Pacific Special Economic Zone Agency, Republic of Panama and The International Finance Corporation (IFC)

Date: 2001 - present

Type of Project: Financial Feasibility, Planning and Transaction Structuring, Military Base Reconversion


Summary: IMG was retained as a technical and financial consultant for the Government of Panama (GOP) and the IFC, a World Bank subsidiary, to assist in determining the feasibility and structuring of the sale / concession of more than 5,000 acres of the former U.S. Howard Air Force Base (HAFB) in the Republic of Panama. The project consists of the redevelopment of the largest military base in the region, and converting it into a major economic development zone through commercial, industrial, and residential development in partnership with the private sector. The property is located approximately 10 miles south of the center of Panama City and includes over 400 acres of land reserved for an international airport, and over 2.5 million square feet of built property that housed over 20,000 people.

Issue: As a part of the ownership transfer of the Panama Canal to the Republic of Panama in 1999, many military bases and other land tracts became the responsibility of the GOP. With HAFB in particular, the GOP wanted to encourage development that would benefit the country through economic growth and job creation. The IFC and IMG were retained to assist the GOP in developing creative "out-of-the-box" ideas that would achieve these goals through private sector participation.

Solution: IMG conducted numerous technical financial studies and surveys of potential interested parties to determine the requirements for bringing a master developer to the project capable of meeting the GOP’s goals. In addition, IMG assessed the demand characteristics of the Panamanian market as well as the area’s transportation systems and links to understand their impact on the feasibility of the project. A financial feasibility study, from the perspective of the prospective master developer, was conducted to determine appropriate pricing for the property.

IMG also under took a thorough evaluation of the property. Specifically, a physical and environmental assessment of all facilities was conducted by IMG to facilitate the development of a land use plan and project master plan. In addition, an environmental baseline study was completed and provided to potential concessionaires.

Value Created: As a result of work in the early years of the project, the GOP accorded HAFB status as a special economic zone that establishes unique labor and trade laws as well as tax breaks for businesses that will create the type of jobs sought by the GOP. IMG helped to develop the required information for the comprehensive terms of reference that were issued in November of 2005, and provided marketing assistance that resulted in a successful pre-qualification in early 2006. With additional IMG assistance in the development of the RFP and throughout the proposal evaluation process, a long-term agreement is to be signed in 2006.

More information about cases and studies can be found here