Summary.
Article 1 approves the budget of the Panama Canal Authority (Autoridad del Canal de Panamá) for the fiscal year from October 1, 2024, to September 30, 2025. It identifies Cabinet Resolution No. 61 of July 16, 2024 (Resolución de Gabinete N.O 61 de 16 de julio de 2024), as the instrument by which the budget was approved. Article 2 establishes the budget structure and allocations in thousands of balboas. It arranges the appropriations and estimates under revenue, expenses, income, and the allocation of remaining funds.
For transit revenue, Article 2 distinguishes tolls from other Canal transit services and gives a subtotal of 5,527,844. Other revenue comprises sales of electricity and power, sales of drinking water, and miscellaneous receipts, with a subtotal of 95,695. Total projected revenue is 5,623,539. The structure thus separates receipts from transit from those arising from the Authority’s other revenue generating activities during the stated fiscal year.
On the expense side, the same article allocates amounts for personnel services, employee benefits, materials and supplies, fuel for operations, and fuel for electricity generation. It also covers transportation, meals, and lodging abroad; local travel allowances and transportation; service contracts and professional fees; and insurance. It includes a provision for maritime casualties, a contingency for other operational losses, and a provision for inventory obsolescence. Other expenses, depreciation, and impairment losses complete this group. The article then deducts capitalized costs from the expense subtotal and states total operating expenses.
Article 2 adds the charge per net ton and services provided by other State entities to operating expenses to determine total expenses. It then states income before interest, adds financial income, and deducts finance costs to arrive at net income. The remaining entries identify provisions for the investment program and financing payments, concession contributions, equity reserves, and surpluses after provisions and reserves. The article also includes a separate entry for the investment program.
Article 3 provides that the Panama Canal Authority must execute its budget in accordance with regulations issued by the Authority itself. Article 4 sets October 1, 2024, as the date on which the proposed law would take effect. The bill concerns the Panama Canal Authority and other State entities that provide services to it. Its budget entries also concern sectors connected with Canal transit, contracted services, insurance, electricity, drinking water, and concessions.
What it proposes.
- Approval of the Panama Canal Authority’s budget.
- Budget structure for revenue, expenses, income, provisions, and reserves.
- Budget execution under regulations issued by the Authority.
Who it would affect.
- Panama Canal Authority (Autoridad del Canal de Panamá)
- Other State entities providing services to the Authority
- Contractors and concessionaires connected with the budget entries
Key points.
- Approves the budget for the fiscal year from October 1, 2024, to September 30, 2025, as approved by Cabinet Resolution No. 61 of July 16, 2024.Art. 1
- Separately states transit revenue from tolls and other services and revenue from electricity, drinking water, and miscellaneous sources.Art. 2
- Allocates expenses among personnel, supplies, fuel, travel, contracted services, insurance, and other operating entries.Art. 2
- Includes provisions for maritime casualties and inventory obsolescence and a contingency for other operational losses.Art. 2
- Determines total expenses and net income using operating entries, the charge per net ton, State services, and financial income and costs.Art. 2
- Lists provisions for investment and financing, concession contributions, equity reserves, surpluses, and the investment program.Art. 2
- Requires the Panama Canal Authority to execute the budget under regulations it has issued.Art. 3
- Sets October 1, 2024, as the effective date of the proposed law.Art. 4