Panama

FY 2001 Program Description and Activity Data Sheets

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FY 2001 Program USAID will focus its resources on the protection of the canal watershed, as well as assist on-going efforts by the GOP to implement critical reforms of its criminal and commercial justice systems. During CY 1999, USAID developed a Strategic Plan that outlines the range of activities to be implemented beginning in FY 2000 within the framework of the two objectives indicated above. In FY 2001, USAID will continue to support the strengthening of GOP institutions responsible for the protection of the watershed and the sustainable management of natural resources in the PCW. To enhance the sustainability of protection of the watershed, USAID will continue to encourage and assist the participation of civil society, the private sector and local governments in the watershed in this effort. USAID will also provide assistance to the court systems, justice sector personnel and civil society organizations in order to increase fairness and efficiency in the justice sector. [an error occurred while processing this directive] ACTIVITY DATA SHEET PROGRAM: Panama TITLE AND NUMBER: Panama Sustainably Manages the Canal Watershed and Buffer Areas, 525-001 PLANNED FY 2000 OBLIGATION AND ACCOUNT: $3,500,000 (DA) PROPOSED FY 2001 OBLIGATION AND ACCOUNT: $4,500,000 (DA) STATUS: Continuing INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2006 Summary: Numerous studies, including one conducted by USAID in 1994, have demonstrated the link between land use in the PCW and the long-term operation of the Panama Canal. Efficient operation of the Panama Canal relies on the fresh water runoff across the 326,000 hectare watershed that provides the fifty-two million gallons of fresh water required for the passage of each ship. The mandate of the newly-created Panama Canal Authority (PCA) extends beyond the management of the Canal itself to include, in coordination with other Panamanian authorities, the protection, conservation, and maintenance of the water and natural resources of the PCW. The purpose of this Strategic Objective is to assist Panama to effectively assume the responsibility for the management and protection of the PCW and to serve U.S. interests in the efficient operation of the Canal in a sustainable manner. The direct beneficiaries of this objective will be the Canal watershed ecosystem, the 143,000 residents living in the PCW, including the urban populations of Panama City and Colon, the industrial sector which depends on fresh water for industrial uses, and the operators and users of the Canal. The indirect beneficiaries will be the 1.4 million people located near the canal, the population of Panama as a whole and the global economy. Key Results: USAID has determined that four key intermediate results are necessary to achieve this objective: (1) Institutional arrangements for effective management functioning are Adopted, 2) Natural resources in the PCW and buffer zone are managed effectively, 3) Civil society organizations are strengthened in order to actively support sustainable management in the PCW and 4) Local government and private sector capacity for environmental management in the PCW and buffer areas are increased. Performance and Prospects: Performance over the past year has demonstrated successes in all aspects of the portfolio. The GOP, with USAID assistance, made progress during FY 1999 towards improving institutional arrangements for effective management of the PCW. With USAID assitance, Inter-Institutional Commission for the Canal Watershed (IIC) was organized and recently began functioning. USAID continued to support the Ecological Trust Fund (FIDECO) which provided more than $700,000 to the GOP for the management of protected areas, and an equivalent amount to NGOs to support activities in sustainable agriculture, biodiversity conservation, ecotourism development and watershed management. Continued support was provided through the Smithsonian Tropical Research Institute (STRI) to a team of Panamanian scientists to monitor the condition of the Panama Canal Watershed by tracking forest cover, hydrology and soils, biodiversity and human settlements. Presentations of the resulting information and negotiations with the National Environment Authority (ANAM), the Panama Canal Commission (PCC) and the Panama Canal Authority (PCA) has generated a heightened level of interest for incorporating the monitoring program into the Panamanian institutional framework. Eight positions were approved by ANAM for members of the monitoring team to become permanent staff, and ANAM continues to house the program at a site adjacent to its watershed management program. These counterpart institutions jointly designed a follow-on monitoring program for the year 2000. The program will be overseen by the IIC. This supervisory body, composed of both governmental and non-governmental entities, is legally charged with the responsibility of assuring the coordination of all public and private organizations involved in watershed management within the Panama Canal Watershed. Support to the GOP for improved natural resource management in the PCW has continued. Regulations were developed with USAID assistance for the environmental law of Panama. Infrastructure development within the five national parks is near completion; park guard training has been completed; management plans have been written and have either been approved or are under public review for all the parks in the PCW. In addition, an innovative training program for tourist guides has been developed. Thirty participants, mostly from local communities and people of indigenous origin, were trained. This program was implemented in conjunction with private enterprises and several NGOs through a cost-sharing arrangement in which more than half of the course costs were covered by the private sector. Additionally, two major seminars were held on the co-management of protected areas and on cooperation among countries in Central America. Both seminars were attended by representatives from every country in Central America. Local capacity to conserve natural resources and manage the watershed was increased through pilot agroforestry activities and support for the institutional consolidation of the Association of Panamanian Municipalities (AMUPA). Future activities are targeted to assist AMUPA to play a lead role in helping local governments implement the regional land-use plan and to help communities solve environmental problems such as solid waste disposal. Possible Adjustments to Plans: While no specific adjustments to plans are contemplated at this time, USAID continuously strives to identify windows of opportunities in its work with the PCA, ANAM, local governments, NGOs and community groups to ensure that all appropriate actions are taken to promote USAID objectives. For example, the PCA has initiated preliminary studies to expand the PCW in order to increase the water supply available to operate the canal and to satisfy local Panamanian needs, especially the cities of Panama and Colon. Recently, the PCA approached USAID to explore possible assistance for this activity. USAID is actively considering this request, subject to the availability of funds, which may lead to adjustment to our current plans. Other Donor Programs: The Inter-American Development Bank (IDB) and the World Bank (WB) have initiated activities that will enhance improved management of the PCW. Both entities are implementing activities in land management and PCW conservation. The IDB has assisted the GOP in the development of a modern National Environmental Strategy. The IDB is also implementing activities designed to strengthen comprehensive watershed management programs elsewhere in the country. Under the Common Agenda Initiative, Japan is assisting the GOP to establish a training center in the PCW. The center will provide environmental education and awareness training for residents of the watershed and buffer areas, including the cities of Panama and Colon, as well as training in forestry and agroforestry techniques. USAID is working closely with all of these donors to ensure complementarity of activities. Principal Contractors, Grantees or Agencies: Current grantees and contractors include the Smithsonian Tropical Research Institute (STRI), the Academy for Educational Development (AED), the International Institute for Education (IIE), the International Executive Service Corps (IESC), Techno-Serve, and International Resources Group (IRG). Selected Performance Measures: Baseline Actual (1999) Target (2000) Target (2001) Landuse in the PCW Compatible with the Approved Regional Plan 57% 61% 63% 65% Community based pilot Agroforestry activities On-going      --Number of Agroforestry/      Agriculture Activities      --Percentage of Participants      that are women 4% 10% 4% 10% 5% 15% 6% 20% Inter-Institutional Commission (IIC) established and decision making mechanisms functioning No No Yes Yes U.S. Finance Table (Microsoft Excel file) ACTIVITY DATA SHEET PROGRAM: Panama TITLE AND NUMBER: Fair, Fast and Independent Criminal and Commercial Justice Systems Facilitated, 525-002 PLANNED FY 2000 OBLIGATION AND ACCOUNT: $1,000,000 (ESF) PROPOSED FY 2001 OBLIGATION AND ACCOUNT: $1,000,000 (ESF) STATUS: Continuing INITIAL OBLIGATION: FY 1991 ESTIMATED COMPLETION DATE: FY 2006 Summary: The judicial system of Panama is an adversarial mixture of the inquisitory and accusatory systems known elsewhere in the world. It is inefficient, corrupt and non-transparent. It is difficult to understand or use for both Panamanians and non-Panamanians and is highly susceptible to manipulation. The inadequacies of the justice system have become increasingly prominent, seizing the attention of the public in headlines and editorials denouncing systemic slowness, inefficiency and lack of collaboration among the key justice institutions. Criticism has focused on the criminal system, but local and foreign businessmen have little confidence in the ability of the civil justice system to settle commercial disputes expeditiously and efficiently. The criminal justice system continues to suffer serious, systemic weaknesses that have produced delayed, flawed or legally incorrect decisions. Major consequences of these weaknesses are increasing backlogs in cases and a prison population in which 65% of the prisoners held in preventive detention have never appeared before a judge. The courts are believed by many to be subject to manipulation, corruption and political influence. The commercial component of the system of civil law is no better. Court productivity is low and slow: approximately 60% of all cases in the system (the majority in civil courts) have been pending for over a year, and 40% have been pending for over three years. The purpose of this SO is to support GOP efforts in facilitating fundamental change in the justice sector. A fair, timely and transparent justice system is necessary to ensure the economic health and political stability of the country. In particular, fundamental change to the justice system will improve the confidence of Panamanian citizens and U.S. and international businesses and investors which, in turn, will benefit efforts aimed at improving economic and social welfare within the country and facilitating the productive uses of formerly owned U.S. properties. Additionally, it will contribute to improving and strengthening the legal foundation upon which the institutional framework for sustainable PCW management and protection is based. Key Results: USAID has identified four key intermediate results required to achieve this objective: (1) Access to justice improved and public pressure for judicial sector reform increased, (2) Commercial court systems functioning more effectively, (3) criminal court systems functioning more effectively, and (4) Collaboration between investigators and prosecutors Improved. Performance and Prospects: Since Panama's return to democracy in 1990, efforts have been undertaken to re-establish independent Panamanian judicial institutions, strengthen judicial operations and modernize laws. When budget stringency in 1995 forced USAID to reduce its presence worldwide, USAID eliminated its Democracy and Governance Strategic Objective and phase out its successful Administration of Justice project in 1997. When funding became less stringent, USAID reinitiated in FY 1998 work in the justice sector. To help define programmatic activities under the resumed program, USAID undertook a sector assessment that determined that major problems persist. Prospects for making an impact have improved with the entry into the justice sector of substantial donor assistance from the IDB and Spain. USAID will complement IDB and Spanish efforts. USAID will focus in particular on NGO development, ethics, and well-defined areas in which our support can complement other donor's programs, such as training of judges, prosecutors, defenders, court personnel and others (e.g., alternative dispute resolution and alternative sentencing). Training of police and investigators in cooperation with the Department of Justice completes this strategy. Possible Adjustments to Plans: The objective is to enable the GOP and civil society organizations to formulate, institutionalize and implement activities designed to ensure fundamental, sustainable, systemic change in the justice systems. A top priority will be to motivate both the public and private sectors to maintain reform efforts. Results of analytical studies could produce changes to USAID's approach in the future. Further research will be undertaken to understand better the constraints to justice and the appropriate means to address them. Other Donor Programs: The IDB is the major donor in the sector with an $18.9 million loan to the GOP. Other donors include the United Nations Development Program (UNDP), the Organization of American States (OAS) and the European Union (EU) with very modest programs and several small bilateral programs (the British, Germans, French and Spanish). Principal Contractors, Grantees, or Agencies: U.S. contracts to be determined. Selected Performance Measures: Baseline Actual (1999) Target (2000) Target (2001) Number of Local NGOs actively involved in justice issues 8 9 10 12 Number of Judges and Prosecutors trained in aspects of New Commercial and Penal Codes 0 0 50 200 U.S. Finance Table (Microsoft Excel file) ACTIVITY DATA SHEET PROGRAM: Panama TITLE AND NUMBER: To Facilitate the Smooth Transfer of the Panama Canal, as Provided in the 1977 Treaties, and the Productive Use of the Reverted Properties, 525-003 PLANNED FY 2000 OBLIGATION AND ACCOUNT: none PROPOSED FY 2001 OBLIGATION AND ACCOUNT: none STATUS: Completed INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2000 Summary: A smooth transfer and efficient operation of the Canal and the productive use of related properties require adequate management structures. This Special Objective assisted Panama to: a) assume management and operation of the Canal in a smooth and seamless manner; b) generate economic activity to offset the negative impact on its economy due to job losses and income foregone, resulting from the progressive withdrawal of U.S. military forces; and c) effectively absorb and use substantial amounts of declared excess property by the U.S. military and the Panama Canal Commission. The beneficiaries of the Special Objective are U.S. and other international users of the Panama Canal, as well as the Panamanian people, who depend on revenues derived from the U.S. military bases and the Panama Canal and its 8% to 15% contribution to Gross Domestic Product. This includes permanent Panama Canal Commission employees and U.S. military contract and concession employees, lower-income Panamanians who stand to benefit from the sale of reverted properties that generate resources for the Social Development Trust Fund and the Special Fund for Low-cost Housing. Many Panamanians, particularly underprivileged groups, have improved their quality of life as a result of effective management of the Excess Property Program. Key Results: The Mission has selected two indicators that most accurately depict performance during the reporting period. Job generation and investment have been increasing progressively. Some 333 jobs were created in 1997, 1,172 in 1998 and 2,853 in 1999, providing for an estimated $36.0 million in wages during this three-year period of which $28.0 million were generated in FY 1999. Investment expenditures were $139.6 million in 1998 and increased to $172.4 million in 1999. In addition, some 554 houses were sold and 35 reversion-related development contracts were executed during 1999, compared to 155 houses and 29 contracts executed in 1998. Performance and Prospects: Overall performance of this Special Objective has been satisfactory. USAID was successful in significantly strengthening the PCA institutional capacity in two specific areas for Canal management, i.e., alternate dispute resolution in labor conflicts and integrated financial management. The Mission also helped the GOP to partially offset adverse effects from reduced jobs and expenditure levels resulting from the implementation of the Torrijos-Carter Canal Treaties. It provided assistance to institutionally strengthen the Authority for the Inter-Oceanic Region (ARI), which is the GOP entity charged with finding high-valued uses for host properties awarded by the United States Government to the Government of Panama. This has facilitated the productive use of reverted properties. In tandem with a private-sector consortium (Fundacion ANDE), USAID also fostered an improved economic policy climate, encouraging private investment and economic growth. On balance, targets for employment and investment expenditure have been virtually met. Investment expenditures and contracts executed have exceeded targets. Possible Adjustments to Plans: Activities related to this SpO were completed on December 31, 1999. Other Donor Programs: With the exception of the Inter-American Development Bank (IDB), there has been little other donor involvement in the reconversion of reverted military bases. IDB support dates back to 1993, when IDB approved a $7.6 million technical assistance loan to finance activities, plus environmental and urban studies. The primary focus of the IDB's $600,000 Technical Assistance (TA) grant to ARI through the Multilateral Investment Fund (MIF) in 1997 was on legal and environmental expertise to accelerate the sale of assets at Albrook Air Base and reverted bases on the Caribbean coast. In December 1999 the MIF approved $1,050,000 to support transfer of government-owned assets to private investors in Panama's Inter-Oceanic Region. The current MIF financing deepens and widens the previous operation. The IDB will also be providing a $24 million loan for the development of the "City of Knowledge", an educational complex being established in Fort Clayton, a reverted military base. Principal Contractors, Grantees or Agencies: The major USAID/Panama contractors and grantees included the International Executive Service Corps (IESC), the Federal Mediation and Conciliation Service (FMCS), the Institute for International Education (IIE), the International Resources Group (IRG), Fundación ANDE, the Panama Canal Authority (PCA), and the Inter-Oceanic Regional Authority (ARI). Selected Performance Measures: Baseline1 Actual (1999) Target (2000)2 Target (2001) Jobs created in the Reverted areas (Cumulative #) 12,300 5,358 6,150 N/A Total wages of the Newly employed In the reverted areas ($ million/yearly) 95 28.0 48.5 N/A Value added of new Economic activity in Reverted areas 250 172.4 125.0 N/A Toll revenues ($ million/yearly) 462.8 497.0 503.0 N/A Transits 13,631 13,975 14,050 n/a 1 Attributable to U.S. military presence on December 31, 1994. 2 Equivalent to 50% of level attributable to U.S. military presence on December 31, 1994. U.S. Finance Table (Microsoft Excel file)

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