By Juan Zamorano
PANAMA CITY -- Counting down his final weeks in office, Panamanian President Ricardo Martinelli on Saturday inaugurated the most-emblematic project of a five-year term marked by fast economic growth and more than a hint of hubris -- Central America's first subway system.
The metro will surely alleviate the booming capital's dreadful traffic. But critics say the $2 billion spent on the 9-mile (14-kilometer) rail line would have been better used building a higher-capacity surface transport network and expanded bus system.
The critics also are unhappy about what they consider Saturday evening's over-the-top party, with a free concert, fireworks and a Chinese dragon dance, to celebrate the new subway. They call it a political stunt a month before Panama's elections to drum up support for Martinelli's preferred successor, former Housing Minister Jose Domingo Arias.Trains themselves won't start running a full schedule until Monday. Martinelli, who leaves office July 1, isn't fazed by the criticism. Notably brash with friends and foes alike, the 62-year-old supermarket magnate hasn't tired of boasting that he has accomplished more in five years than was done in the previous 50. He has an approval rating of 60%, and relishes the chance of getting his chosen successor elected. No incumbent Panamanian president has done that since democracy was restored in 1989. "Many times I've been called crazy for wanting to do works like this, but here it is, and it is for the Panamanian people," Martinelli said Saturday at the inauguration, during which he danced calypso and conga along with some of his ministers. Several thousand spectators, some waving Panamanian flags, gathered in front of a stage by the Los Andes station north of Panama City for a concert featuring local acts. Since Martinelli took office in 2009, Panama has spent upward of $15 billion on infrastructure improvements, including new hospitals, airports and 990 miles (1,600 kilometers) of highways. The subway is Panama's second-costliest project in the past century, surpassed only by the current $5.25 billion expansion of the Panama Canal that began before he became president. "Never has a government done so much for a country and its people," proclaims a TV ad featuring the subway and a catchy, merengue-tinged chorus of "Promises Fulfilled." The government hasn't announced how much a ride will cost, though on Saturday Martinelli said the metro "is going to be cheap." Instead, it is waiving fares for the first few months in what analysts say is a clear attempt to boost the candidacy of the little-known Arias, who holds a narrow lead in most polls over former Panama City Mayor Juan Carlos Navarro. Panama's region-leading infrastructure is a point of pride for many of the country's 3.4 million people, although the spending hasn't been without controversy.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.