Concession Adjustments Nullified in Panama

The bill nullifies the validity of the modification arrangements or equivalents for the concession contracts authorized by the state over the last decade.

Monday, July 6, 2009


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Martinelli’s administration will present its first bill to the National Assembly of Panama, which, in addition to nullifying adjustments to the concession contracts, includes “that companies cannot fall more than three months behind on their royalty payments. Once this time has lapsed, the state may revoke the concession without any further procedure.”

Reporter Santiago Fascetto, in his article in Prensa.com, explains what equivalents are: “Changes, adjustments, fee modifications, and time frame changes that have implied, in any form, a detriment to the State. The Minister of Economy and Finance, Alberto Vallarino – during an interview with this newspaper – explained that with this policy, the state will recover all the rights it had and will add millions of dollars to the nation’s reserves through taxes.”

More on this topic

Panama: Comparison Law in Hold

August 2009

As the government negotiates with port operators, the Assembly decided to put this law, dubbed "equiparación" in Spanish, on hold.

José Blandón, from the Treasury Commission, stated that "...this negotiations could imply making modifications to the original project".

"Port operators have rejected the project, presented by the Executive, from the beginning.

Panamanian Ports Reject Comparison Law

July 2009

The ports argue that the new law, dubbed "equiparación" in Spanish, will make the port system less competitive.

According to spokespersons from the ports of Balboa, Manzanillo International Terminal, Colón Container Terminal and Cristóbal, further dialogue is needed for a solution that benefits both sides.

Panama: Businessmen Against Comparison Law

October 2009

The Industries, Commerce and Agriculture Chamber issued a statement requesting a veto of the initiative, known as "Equiparación" in Spanish.

This law project eliminates comparison in State purchases, and has already been approved in its third discussion in the National Assembly.

Panama Will Recover Illegal Concessions

July 2009

The government of Panama informed that they will carry on retaking concessions not authorized by law.

After recovering the land reclamation project of Grupo F. last Tuesday, the Panamanian Government communicated that they will continue with these actions against companies not fulfilling their obligations to the State.

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