Bill 404.

Summary.

The bill establishes the National Agricultural Irrigation Canal System (Sistema Nacional de Canales de Riego Agrícola), known as SINACRA, under the Rural Engineering and Irrigation Directorate (Dirección de Ingeniería Rural y Riego) of the Ministry of Agricultural Development (Ministerio de Desarrollo Agropecuario), to supply water for agricultural production. Its governing principles would be environmental sustainability, food security, priority for human water use, interagency coordination and adaptation to climate change. The system could operate nationwide, but activities in areas under the jurisdiction of the Panama Canal Authority (Autoridad del Canal de Panamá) would require that authority’s express authorization. All water withdrawals would require the permits and concessions prescribed by existing law.

The bill establishes an Oversight and Compliance Council (Consejo de Seguimiento y Cumplimiento). Its members would include the Ministry of Agricultural Development, the Ministry of Environment (Ministerio de Ambiente), the Agricultural Innovation Institute of Panama (Instituto de Innovación Agropecuaria de Panamá), and representatives of agricultural and livestock producer associations and academia. The Executive Branch (Órgano Ejecutivo) would set the rules for the Council’s composition and selection of members. The Council would prepare and update a National Agricultural Irrigation Plan every two years, identifying priority areas, proposed works, an implementation schedule and funding sources under technical, environmental and social criteria. It could expand or change the initial priority areas through a reasoned technical resolution.

The system could draw on rivers, streams, reservoirs and water reserves, subject to legally required permits and studies and to the priority of human consumption and environmental conservation. It could develop, rehabilitate and operate canals, pumping stations, farm distribution networks, and facilities for water regulation, withdrawal, conveyance and storage. Infrastructure would have to meet applicable technical and environmental standards and incorporate technologies that optimize water use. Pumping and conveyance facilities would have to use sustainable energy when technically and economically feasible. No works could begin without the applicable environmental, hydraulic, construction and public health permits.

Funding would come from the General State Budget, special funds such as the Special Interest Compensation Fund (Fondo Especial de Compesación de Intereses, FECI), international cooperation, agreements, public-private partnerships and other legally recognized sources. The use of funds would be subject to transparency, accountability and oversight. Each year, the Council would publish a detailed financial report for public consultation and submit it to the National Assembly (Asamblea Nacional). Beneficiaries would form Producer User Boards (Junta de Productores Usuarios) to administer, maintain and operate local systems, coordinate with the Council, receive training and comply with applicable standards.

For those boards and their members, the bill classifies violations as minor, serious or very serious. They concern maintenance payments, training, operating rules, authorized water use, inspections, environmental measures, contamination, records and intentional damage. The Executive Branch would specify penalties by regulation while guaranteeing due process and the right of defense, and would issue the implementing regulation within six months of promulgation. The proposed law would take effect upon promulgation. Its provisions concern the named public bodies, agricultural and livestock producers, academia, and those involved in irrigation infrastructure and financing.