THE $500 MILLION Colon redevelopment  project that will see the construction of 5000  homes  and the  restoration of  historical sites with the aim of creating a tourism magnet for the area, was officially launched  on Tuesday October 12  by Panama  President Juan Carlos Varela. 

The project is controversially in the hands of a consortium-made up of the Panamanian company Cusa and the scandal ridden Brazilian construction  giant Noberto Odebrecht whose  president and senior officers are in detention, accused of corruption.

The project including the homes in Alto de los Lagos was awarded in June this year, and includes  a drainage  system, health centers , parks, and drinking water adjustments

The ceremony, was preceded by a cultural event to extol the roots of the Afro-Caribbean population and was attended by hundreds of people who will benefit from the project. It ended with a fireworks display.

“The renovation project includes the complete restoration of the Old Town and  the recovery of all its historic buildings and sites of national interest  so  we can develop this great tourist and commercial potential in the main city  of our Atlantic Coast, which is sure to attract millions of local and foreign visitors, "Varela said

He  also confirmed that a law will soon be in force making the entire city duty-free, allowing sales of retail goods free of tax,”” which will promote  tourism shopping and give a boost to the economy and trade, "said the president.

The company with the highest percentage of the work is Odebrecht, which is under international scrutiny after its president Marcelo Odebrecht was arrested four months ago, accused of leading a scheme of kickbacks and bribes to obtain multimillion business in Brazil and other countries.