The government would define what the contribution from the mine will be used for

This Thursday, the details of the agreement reached between Government and Mining of Panama to sign a cession contract for 20 years, with the possibility of extending it for another 20 years, but the Presidency of the Republic mentioned the division of the company’s shares, which was previously announced by President Laurentino Cortizo.

Eye, 50% of the annual income would be for the pension program of the Social Security Fund (CSS)which means that if the agreed minimum contribution were $375 million, more than $180 million per year would go in to cover pensions.

In addition, another 20% would also be related to CSS, since it would be aimed at increasing the amount of old-age pensionsso the minimum is $350.00

Under Law 51 of the CSS, the minimum pension was $175with a $10 increase every five years since 2010, which has failed to stop protests by pensioners and retirees who want it to be bigger in addition to other bonuses.

While, 25% of these contributions must remain in the development of the cities and neighboring towns where the copper mine is located. These are the neighborhoods of Donoso and Omar Torrijos in Colón and La Pintada in Coclé.

For this purpose, The Ministry of Economy and Finance (MEF) must create a Master Plan in which investment projects are identified in coordination with local committees.

Of this percentage also funds must go for scholarships abroad and technical training for work.

With the last 5%, Institute of Studies for Teacher Training and Welfare“in order to update the theory and practice of teaching with the best levels in the region”, it is stated in the press release of the Presidency.

The contract must go through a public hearing periodas established by law, to be sent to the Cabinet Council and then to the National Assembly for ratification.

He former president of Conep, Severo Souza, He argued that the agreement is good news for the country, as it creates uncertainty, even at the international level.

“The the ratings they gave the country were conservativehoping there will be an agreement,” he said.

He weight of mining activitywhich was important in the most difficult years of the pandemic, was another indicator of the damage that could be seen, if there was no agreement, as soon as possible.

“They they make up between 4% and 5% of the gross domestic productso an agreement was reached on time, which we hope to know about,” said the businessman.