Bill 656.

Second debate (plenary)
  • TypeBill
  • 656
  • FiledJuly 21, 2026

Summary.

The bill establishes an exceptional, temporary procedure for wastewater treatment systems or plants that have not been formally transferred to the National Water and Sewerage Institute (Instituto de Acueductos y Alcantarillados Nacionales, IDAAN) by the time of promulgation. It defines treatment plants as infrastructure that treats domestic or mixed wastewater before discharge or reuse. It also defines urban development promoters and developments for purposes of applying its provisions.

Where a transfer remains pending because the promoter is nonexistent, absent, dissolved or legally inactive, residents, community associations or a public entity could request the procedure, or IDAAN could initiate it on its own motion. IDAAN would have up to twelve (12) months to complete the administrative transfer without payment, without affecting any remaining environmental, civil or criminal liability. The Ministry of Economy and Finance (Ministerio de Economía y Finanzas) could allocate funds for operation, rehabilitation or maintenance only to systems or plants formally transferred to the State and accepted by IDAAN.

The Ministry of Health (Ministerio de Salud, MINSA) and IDAAN would prepare and update a national inventory recording each facility’s operating condition, legal status and compliance with applicable rules. IDAAN would plan and coordinate their gradual upgrading and acceptance within approved budgetary resources and existing institutional plans. From promulgation, it would conduct an initial inspection of sewerage systems during the plan approval stage at the One-Stop Office of the Ministry of Housing and Land Use Planning (Ministerio de Vivienda y Ordenamiento Territorial). IDAAN would also provide a treatment plant design model based on the number of homes and applicable rules. Transfers of water supply systems, sanitary sewerage systems and treatment plants would require the technical and administrative documents prescribed by regulation, including IDAAN’s final inspection record, as-built plans, operation and maintenance manuals, and certification of performance tests.

The bill amends Article 41 of Law 77 of December 28, 2001 to require urban development promoters and State institutions to transfer their systems to IDAAN without payment within three hundred and sixty-five days (365) after project completion. IDAAN would verify compliance with applicable standards and fitness for service. Projects that failed to meet the rules in force when built would have twelve (12) months to make ordered corrections. De facto service providers and those choosing to continue providing the service would be exempt. A new Article 41-A would establish an administrative fine ranging from five thousand balboas to ten thousand balboas for missing the transfer deadline, graded by project size, length of noncompliance and repeated violations. The amendment to Article 52 would require IDAAN to accept, operate and maintain transferred systems and plants. MINSA and IDAAN would report annually to the National Assembly (Asamblea Nacional) on transfers, operation and treatment quality. The bill would take effect upon promulgation in the Official Gazette. Its provisions concern the named public bodies, urban development promoters, service providers and communities served by these systems.

What it proposes.

  • Transfer of wastewater treatment systems and plants.
  • Inspection, documentation and acceptance of water supply and sanitary sewerage infrastructure.
  • Operation, maintenance, inventory and reporting on wastewater treatment.
  • Transfer deadlines and an associated administrative fine.

Who it would affect.

  • Urban development promoters and State institutions that develop or promote such projects.
  • The National Water and Sewerage Institute and other public bodies assigned duties.
  • Residents and community associations requesting the exceptional procedure.
  • De facto service providers and those choosing to continue providing the service.

Key points.

  1. Establishes an exceptional, temporary procedure for treatment facilities not formally transferred and defines terms used in the bill.Arts. 1-2
  2. Allows a transfer to begin when there is no legally active promoter and gives IDAAN twelve (12) months to complete it without payment.Art. 3
  3. Conditions funding on formal acceptance of facilities and provides for a national inventory and gradual acceptance.Arts. 4-6
  4. Requires an initial inspection during plan approval and technical and administrative documents for transfer.Arts. 7-8
  5. Amends Article 41 of Law 77 of December 28, 2001 to set the transfer duty, deadline, verification and corrections, together with the stated exemptions.Art. 9
  6. Adds a graded administrative fine for missing the transfer deadline.Art. 10
  7. Amends IDAAN’s duty to accept, operate and maintain transferred systems and requires an annual report to the National Assembly.Arts. 11-12
  8. Lists the amendments to Law 77 of December 28, 2001 and sets entry into force upon promulgation in the Official Gazette.Arts. 13-14