There has been discussion regarding the  draft law which changes the regulatory framework for the provision of electricity and  includes a proposal to change the way the state sells its investments in in utility companies.  It appears that there may be some leveling of the playing field allowing more investors to take advantage of this new issue.

Manuel Brea, in his opinion piece in Prensa.com, detailed arguments supporting the Panamanian government’s justification for the intention to sell its stake, “a) Avoiding conflict of interest, because the State is a partner and regulator at the same time. The State, as a regulator alone, can better achieve its social purpose. b) Encouraging the development of the local securities market, in order to make new investment options available to the public.”

According to Brea the haste with which the amendment was introduced and the lack of discussion about it has tarnished the state’s decision.

“The proposal focuses on the amendment of Article 48, which indicated that the remaining shares (which the state has) could be sold using the procedures of exchange or auction with a limit of 5% per buyer.”