Draft bill 93.

Summary.

The draft bill proposes elevating IDAAN to the National Water Supply and Sanitation Authority (Autoridad Nacional de Agua Potable y Saneamiento, ANAPS), an autonomous entity with nationwide jurisdiction, its own assets and separate funds, which could not be privatized. It defines water supply, sewerage and sanitation services, rural communities, users and operating units. It declares that water belongs to the State, gives priority to human consumption and prohibits its disposal as property. The Authority would provide services outside rural communities and assume the functions assigned to the National Institute of Aqueducts and Sewers (Instituto de Acueductos y Alcantarillados Nacionales) under Law 77 of 2001. The Executive Branch (Órgano Ejecutivo) would set sector policy.

The Board of Directors (Junta Directiva) would set institutional policies and rates, subject to verification of the methodology by the National Public Services Authority (Autoridad Nacional de los Servicios Públicos, ASEP). The bill governs the Board’s composition, directors’ qualifications and restrictions, and its decisions. It assigns the Board approval of regulations, budgets, borrowing and performance agreements. Those agreements would rest on business, expansion and financing plans; ASEP would assess their targets and publish results. The Authority’s Central Office (Oficina Central de La Autoridad) would direct investments and oversee service delivery. The Administrator would represent the entity legally and implement Board decisions. Regional offices would provide services in their territories. The Rural Water Supply and Sanitation Unit (Unidad Rural de Agua Potable y Saneamiento) would assist rural providers, prepare technical standards and coordinate investment in rural communities. The Oversight Unit (Unidad de Fiscalización) would conduct audits and investigations and report directly to the Board.

The new entity’s assets would include IDAAN’s property, rights, revenue and recorded liabilities, together with resources acquired later. The bill provides for asset inventories, financial planning and a budget separate from the General State Budget, submitted to the Cabinet Council (Consejo de Gabinete) and the National Assembly (Asamblea Nacional). The Office of the Comptroller General (Contraloría General de la República) would conduct subsequent audits. The bill provides tax exemptions subject to exceptions, limits on the use of funds and State guarantees, and authorized borrowing for emergencies or investment. The Authority could procure works, goods and services under its own regulations and use public private partnerships for certain supply projects.

The Water Supply and Sanitation Sector Support Fund (Fondo de Apoyo al Sector de Agua Potable y Saneamiento) would finance operating deficits, rate reductions, restructuring, investment and subsidies for families classified as social cases. The Ministry of Economy and Finance (Ministerio de Economía y Finanzas) would establish it as a trust, with the National Bank of Panama (Banco Nacional de Panamá) serving as trustee. It would receive budget allocations, contributions linked to surpluses of the Panama Canal Authority (Autoridad del Canal de Panamá) referred to in Law 19 of 1997, and donations. The trustee would submit reports and publish the fund’s operations; specified managers would be barred from contracts involving trust assets.

For personnel, the bill proposes a special merit based employment regime covering competitive selection, assessment, training, occupational safety, complaints and appeals. It excludes the general application of the Labor Code (Código de Trabajo), the Administrative Code (Código Administrativo) and Law 9 of 1994 on the stated terms. It also refers to the Political Constitution of the Republic of Panama (Constitución Política de la República de Panamá), the Administrative Career Law (Ley de Carrera Administrativa) as supplementary authority, and existing agreements. It regulates job security, compensation, discipline, conduct, relations with workers’ organizations and unfair labor practices.

Rates would cover costs determined under ASEP’s methodology. Changes would involve written consultation and a public hearing announced in the Official Gazette. Billing would be based on measured consumption. The bill establishes connection duties for properties in served areas, approval of plans and transfer of systems built for housing developments, payment by public entities, and investment subsidy rules for low income communities. The Authority would approve and supervise new installations; the Public Registry would require proof that accounts are current for certain registrations in served areas. Customers would pay for meters and installation, subject to an exception for families classified as social cases.

The provisions could concern residential users, rural communities, workers, housing developers, contractors, and commercial and industrial sectors. They also assign roles or duties to the Ministry of Social Development (Ministerio de Desarrollo Social), the National Treasury (Tesoro Nacional), the National Government (Gobierno Nacional), the Fire Department (Cuerpo de Bomberos) and the other public entities mentioned above, within the Republic of Panama.