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Panama City: A boomtown with growing pains – The canal expansion and an influx of firms are transforming the city, but its infrastructure is sorely inadequate.

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Posted on: June 17th, 2008
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“The explosions that shatter the early morning quiet here are perfect metaphors for another kind of boom, the economic one transforming ’s capital.

The blasts a few miles north of the city are part of the first phase of the $5.25-billion Canal expansion project. They are clearing a path for new locks that will modernize the historic waterway and, in 2014, enable bigger ships to traverse the isthmus.

This country’s economy grew 11% last year, in large part because of expectations of continued prosperity resulting from a bigger and busier canal. But there is more going on in than just a massive public works project.”*

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