The United States gave Panama control of two U.S. military bases on its Atlantic coast Saturday, beginning a five-year withdrawal that is to end in the handing over of the Panama Canal.
President Ernesto Perez Balladares, accepting the symbolic keys to Fort Davis and Fort Espinar at a ceremony, promised the facilities would be put to good use."Despite the government's years of lagging behind, we will make the best collective use of these areas and convert them into commercial centers," the president said.
The United States still has eight military bases in Panama.
A 1977 treaty requires a complete withdrawal, ending a prominent American presence that began with the opening of the canal in 1903 and included a 1989 invasion by 25,000 troops to over-throw dictator Gen. Manuel Noriega.
In all, Panama is to receive facilities valued at up to $10 billion.
The Panamanians have had trouble making the most of facilities already handed over. The U.S.-built Panama Railroad quickly went from an efficient line to a rusted mess. Many buildings that once housed U.S. soldiers now shelter squatters.
Officials say this time it will be different.
The government recently named Nicolas Ardito Barletta, an economist and former president, to find ways to use the sites.
The government wants to make Fort Davis an industrial park. Backed by Taiwanese investors, the government says it eventually could employ 20,000 people assembling goods for export.
Officials plan to use Fort Espinar, originally known as Fort Gulick, for housing.
Details of the projects haven't been released. Both forts are about 50 miles from the capital. Together, they include nearly 4,500 acres of land and more than 700 buildings.