The decision of the National Assembly to suspend until July the second debate of bill No. 443, which creates the National Biofuels Programhas generated strong reactions in industrial sectors and in the Executive.
The Sugar Cane Industrial Association of Panama (AZUCALPA) He recognized the constitutional power of the Legislature to define the course of the projects, but warned that each month of delay implies “less investment, less growth and fewer jobs for the country.”
According to estimates by the union and national authorities, the implementation of the program would allow the creation of 10,000 direct jobs and 20,000 indirect jobs, with an impact on rural areas and the interior economy.
The Industrial Union of Panama (SIP) also expressed concern, pointing out that the bioethanol project represents a “concrete and immediate opportunity” to generate 30,000 direct and indirect jobs, boost agroindustry and attract private investment to the interior of the country.
The union warned that the delay in approving this type of initiatives has real consequences: investments that are not executed, jobs that are not generated and opportunities that are lost for thousands of Panamanians.
For his part, President José Raúl Mulino reacted to the public debate and assured that the initiative was “taken out of context” due to the political and media controversy.
The president maintained that the discussion of ethanol “was completely taken out of the technical context of this product to take it strictly to the realm of speculation and slander.”
Mulino regretted that the debate was diverted from technical analysis towards political confrontation and warned that the decision not to move forward for now will have economic effects.
“For now there will be no ethanol, with the consequent damage to the enormous number of jobs that this industry would have generated for the country,” he said.
The president stressed that the development of the sector involved “multi-million dollar” investments and the possibility for sugarcane producers to diversify their production towards specialized varieties for ethanol.
However, he insisted that the debate was dominated by “the gossip, slander and speculation,” leaving the fate of the project in the hands of the Legislature.
A project surrounded by interests
The bill that requires mixing 10% of bioethanol with gasoline has put sugar mills with historical ties to the country’s economic and political power under the microscope.
Four plants expressed interest to the Ministry of Energy: Azucarera Nacional (Ansa), Compañía Azucarera La Estrella (Calesa), Ingenio La Victoria and Central Azucarero de Alanje (Cadasa).
Among the names orbiting the debate are figures of political weight: the Minister of Economy Felipe Chapman, whose brother appears as a substitute director at Calesa; presidential advisor Aníbal Galindo Navarro, family-related to the company; and the La Victoria mill, linked to the family of former president Ricardo Martinelli, which has publicly promoted the economic potential of ethanol with estimates of up to 30,000 jobs and $400 million in investments.
In the case of Cadasa, the current comptroller Anel Flores was the legal representative and director of the company until before taking office.
