Monday
Monday 17th March 2025.
March 16, 2025
The Pan Am Generating Ltd. thermoelectric plant , located in the El Arado district of La Chorrera, has been the center of controversy since its installation in 1999. In its more than 25 years of operation, it has faced complaints of pollution, citizen protests, and lawsuits for alleged environmental damage. The latest installment in this story was written last Saturday, March 15, when an explosion in one of its transformers caused a nationwide blackout , reviving the debate about the plant’s safety and its impact on the community.
According to documents from the Public Registry, the president of Pan AM Generating Limited is Luis José Kafie . Gabriel Alexis Bonett González is listed as the general manager.
Since its commissioning in 1999, Pan Am Generating Ltd.’s thermal power plant began operating with a capacity of 96 megawatts, using bunker C as fuel. However, its operation soon generated concerns among area residents due to polluting emissions and environmental impact.
In 2014, the company proposed an expansion to increase its capacity to 156 megawatts with the installation of three new 20-megawatt engines. The initiative sparked strong opposition from the Citizen Coordinator of La Chorrera, which organized protests and denounced potential health risks. The protesters claimed that the increased use of bunker C could worsen air pollution.
In 2015, attorney Donaldo Sousa filed a criminal complaint against the plant for alleged environmental damage and health problems for residents. Medical examinations conducted in the United States were presented as evidence, revealing alleged pollution levels exceeding the permitted limits. That same year, the conflict escalated when nine members of the coordinator were arrested after blocking the passage of a generator to the plant.
In 2017, the First Superior Court rejected a request for an injunction against the company, allowing the legal proceedings against it to continue. A year later, the Public Prosecutor’s Office requested that Aldo López, then the legal representative of Pan Am Generating Ltd., be brought to trial for environmental crimes. Investigations revealed breaches in the environmental impact study, including the construction of chimneys and storage tanks without the required permits.
In 2021 , the Public Services Authority requested the opening of an administrative sanctioning process against the company for possible non-compliance with current electricity regulations, a proceeding that resulted in a $10,000 fine against the company.
On March 15, 2025, an explosion in a transformer at a thermoelectric plant caused a widespread blackout across the country at 11:40 p.m. Power began to be gradually restored starting at 1:00 a.m. in provinces such as Chiriquí, Veraguas, and part of the capital. Authorities began an investigation to determine the causes of the incident and evaluate measures to prevent similar situations in the future.
The Public Prosecutor’s Office reported that an investigation has begun following the accident that occurred this Saturday, March 15, in the María Chiquita area of Colón province, which left eight people dead.
“The Colón and Guna Yala Regional Prosecutor’s Office is conducting an investigation into a crime against life and personal integrity following yesterday’s traffic accident in María Chiquita, Portobelo district, which resulted in eight deaths,” the Public Ministry reported on social media.
Preliminary reports indicate that the accident occurred when two vehicles collided head-on, and one of the cars caught fire.
Fire Department Director Víctor Álvarez noted that this road only has one lane in each direction, and that it is also a busy tourist area, and that firefighters were able to arrive to extinguish the blaze.
The Archbishop of Panama, José Domingo Ulloa , highlighted the importance of dialogue as the “best mechanism” for resolving the problems facing the country, especially those related to education and security.
In his remarks, Ulloa emphasized that the key to overcoming current social challenges is the ability to listen to and understand different perspectives.
“Panama’s biggest problem is that we don’t listen to each other. We’re really starting the school year reeling from the pandemic,” Ulloa said, calling on the various teachers’ unions that announced their support for a strike next Friday, March 21, as a protest against the recent approval in the third reading of Bill 163 , which reforms the Social Security Fund (CSS) .
On the other hand, Jaime Fernández , director of the National Police, uploaded a video on his social media, announcing the inspection of police units in Curundú, Panamá Oeste, Chiriquí, Santiago and Divisa in view of the protests that were announced due to the approval of the reforms to the CSS.
“We’ve developed a strategy to provide a response and solution for the entire population. We’re going to address the problem immediately so it doesn’t get worse,” explains Fernández.
Alberto Díaz, of the Association of Trade Union Movements, indicated on Saturday, March 15, that this strike call will last 24 hours and that they will also support the marches organized nationwide, such as the one scheduled for next Tuesday, March 18.
For Education Minister Lucy Molinar, there is no reason for classes to be suspended. “Private schools will continue to hold classes, and those most in need will continue to be harmed; there is no justification for such harm to students,” Molinar stated.
She also noted that she doesn’t perceive any willingness in the educational community to get involved in these issues, referring to the CSS reforms. “First they said it was privatization, then they raised the retirement age, then they said it was linked to the PRAA ( Self-Financing Early Retirement Program) , then they said it would result in a starvation retirement, but none of that is true. So, what’s the reason for this?” the head of Meduca asked.
Molinar warned teachers that he will not allow the strike to affect the start of the school year and sent a message that if it continues, he will enforce the law.
In response to this statement, the teacher leader stated that “anyone who dares to deduct a teacher’s salary for participating in the activity will be prosecuted for violating the Organic Law on Education.”
Unions such as the Panama Teachers Association (Asoprof) and the Independent Teachers Association , among others, have supported the call for a strike.
On September 5, President José Raúl Mulino announced an audit into alleged irregularities in the purchase of water well pumps and drills, a purchase that exceeded $10 million during the previous administration (2019-2024). A month later, on October 26, Health Minister Fernando Boyd Galindo confirmed that a complaint had been filed with the Public Prosecutor’s Office.
However, this week it was learned that these drills cannot be used and, furthermore, do not meet the required standards. Given this situation, the Ministry of Health (Minsa) requested a $4.3 million budget transfer for the drilling of 122 wells in 11 regional health centers. The request was submitted to the National Assembly’s Budget Committee and was challenged by Vamos representatives Roberto Zúñiga , Jhonatan Vega, and Betserai Richards.
The request for funds has raised questions, especially because, at the start of the current administration, it was revealed that the previous administration had purchased drilling machines for $10 million. These machines were reportedly delivered and stored in Juan Díaz. This raised questions about the need for new investment. If millions of dollars had already been allocated for drilling equipment, why is an additional allocation required to drill more wells? This was a question raised by Richards, who demanded explanations from MINSA authorities.
Deputy Health Minister Manuel Zambrano Chang clarified that the $10 million from the previous fiscal year was not used exclusively for the purchase of drilling machines. Of that amount, approximately $2 to $3 million was used for the acquisition of this equipment, while the remainder was allocated for other supplies, such as 10 vehicles, pipes, and air compressors. However, the controversy persists.
In addition to the problems with the drilling rigs, the Ministry of Health faces another challenge: a lack of specialized personnel. According to the deputy minister, there were 14 drilling rigs in the past, but now only two obsolete machines remain, no longer operational. Given this situation, the decision was made to put the construction of the 122 wells out to tender, including not only the drilling itself but also the installation of pumps, pipes, cabins, filters, and other essential elements.
However, the complaint about the handling of funds used to purchase the pre-drilling rigs remains without concrete answers. One of the main questions raised by Vamos deputies is why, if a multimillion-dollar investment in equipment was made, it is neither operational nor available to address the water crisis. They also criticized the fact that, to date, no responsible parties have been identified, nor have any legal measures been taken against those potentially involved in this irregularity.
In response to the water crisis, on May 30, 2023, then-President Laurentino Cortizo declared a “state of environmental emergency” due to the prolonged drought affecting the country.
As part of the urgent measures, $35 million was allocated, part of which was used by the Ministry of Health (Minsa) to purchase drills and water pumps through a “special contract.” The equipment, imported from China by the company Construcciones y Remodelaciones Eurox, SA, was purchased at a cost of $234,392 but sold to the Ministry of Health for more than $1.7 million.
Last year, the Minister of Health’s legal advisor, Samuel Echeona, explained that the internal audit revealed “certain irregularities” that the Ministry of Health is not responsible for classifying as crimes; therefore, the complaint was filed with the Public Prosecutor’s Office.
The Homicide and Femicide Section of the Prosecutor’s Office, together with the National Police, arrested two people on La Esperanza Street, in Las Cumbres , San Miguelito, for their alleged involvement in the homicide of a 9-year-old girl, which occurred on March 14, 2025 in the Mano de Piedra sector.
The girl, who was returning from school with her grandmother, was shot in the head during a clash between armed gangs in the area.
The incident occurred on the afternoon of Friday, March 14, and the minor died on Saturday, March 15, according to authorities.
Witnesses have reported that the criminals even used rifles during the confrontation.
According to statistics from the Public Ministry, 584 homicides were recorded in Panama in 2024, 17% of which occurred in San Miguelito. Between January and February 2025, 94 homicides were recorded in the country, with 15% concentrated in this district.