IL Postcard

Ice Tower Meltdown "Harmful for Panama's Image"

Date: 07/02/2007

The second of two highly publicized real estate projects in Panama City has been officially cancelled. In January, Panama First Alert reported that the 1,150-foot Palacio de la Bahia tower had been scrapped. The Palacio de la Bahia and another development, Ice Tower, were vying to rank among Latin America's tallest buildings. Now, the developers of the 1,250-foot Ice Tower have also called it quits.

Top engineer for the Ice Tower project, Veronica Ng, says that buyers are being reimbursed, but has not elaborated on the reasons for the cancellation. However, José Batista of the Ministry of Housing (MIVI) said that studies pointed to "technical difficulties" that would have hiked costs. Local media say that Ice Tower developers have already laid foundations at the construction site on Balboa Avenue and plan to erect a smaller tower there.

Industry insiders speculate that the rising cost of construction materials and gas may have something to do with the project's demise. Urban specialist Alvaro Uribe said to Panama's La Prensa: "We knew from the beginning that this project couldn't be built, because Panama doesn't have the technical capacity."

Representatives from the Association of Real Estate Brokers (ACOBIR) say that, although buyers are being reimbursed, the project is leading to a great deal of disappointment and could have "catastrophic" repercussions in the local market. ACOBIR President Ivan Carlucci adds: "This generates a climate of mistrust on an international level…affecting Panama's credibility as an investment destination."

ACOBIR says it is lobbying for stringent legislation that will prevent situations such as this in the future, but has yet to clarify exactly what measures are recommended.

Representatives for other developments in Panama City have come forward to assure the public that many projects are proceeding as planned, and that the Ice Tower and Palacio de la Bahia project failures are exceptions rather than the rule.

Best Regards,

Jessica Ramesch
Editor, Panama Insider
International Living

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