Bill 701.

Summary.

The bill proposes to approve the budget of the Panama Canal Authority (Autoridad del Canal de Panamá) for the fiscal year from October 1, 2026, to September 30, 2027. Article 1 identifies Cabinet Resolution No. 86 of September 1, 2026, as the resolution approving the budget submitted in the bill. The proposal establishes the Authority’s appropriations for that fiscal period and provides for implementation under regulations issued by the Authority itself.

Article 2 presents the budget in thousands of balboas. On the revenue side, it separates tolls from other Canal transit services and records transit revenue of 5,408,057 in total. It then lists sales of electricity and power, sales of drinking water, and miscellaneous revenue as other sources. Total revenue is stated as 5,555,311. The statement of reasons links these estimates to expected vessel traffic, the water available for Canal operations, electricity and drinking water sales, and activities connected with the Canal’s operations.

On the expenditure side, the same article allocates funds to personnel services and employee benefits; materials and supplies; fuel for operations and electricity generation; overseas transportation, meals, and lodging; local travel and transportation; service contracts and professional fees; and insurance. It also provides for maritime casualty claims, other operational incidents, and obsolete inventory, together with other expenses, depreciation, and impairment losses. The budget distinguishes capitalized costs and states total operating expenses of 1,784,532. According to the statement of reasons, these allocations cover the administration, operation, and maintenance of the Canal, its facilities, equipment, watershed, and related activities.

Following operating expenses, Article 2 includes the net tonnage charge and payments for services provided by other state entities. It also records profit before interest, financial income, and finance costs, resulting in net profit of 3,249,533. The schedule then deducts provisions for the investment program and debt repayment, concession contributions, contributions toward investments, and equity reserves. It subsequently presents the surplus after provisions and reserves. The statement of reasons connects the net tonnage charge and surplus with payments to the National Treasury (Tesoro Nacional). It identifies financing for the Canal Expansion Program and the Bridge over the Canal on the Atlantic side as principal sources of finance costs.

The final item in Article 2 allocates B/.341,310 to the investment program, in the thousands of balboas specified by the schedule’s heading. The statement of reasons describes investments to replace assets, maintain operations, manage water resources, and develop logistics, energy, and port terminal initiatives. The Río Indio lake project is among the initiatives it names. It also describes resources for staff training and recruitment, watershed protection, and responses to operational risks. Those explanations accompany the appropriations; the operative provisions establish the budget’s structure and amounts.

Article 3 provides that the Panama Canal Authority is to execute its budget under regulations it issues. Article 4 sets October 1, 2026, as the proposed law’s commencement date. The operative provisions make no express amendments to other instruments. The statement of reasons places the budget within the framework of the Political Constitution of the Republic of Panama (Constitución Política de la República de Panamá) and Law 19 of June 11, 1997. It also refers to the Panama Canal Authority’s Financial Regulations as part of the Authority’s financial framework.

The proposal concerns the Panama Canal Authority, the National Treasury, the Board of Directors of the Panama Canal Authority (Junta Directiva de la Autoridad del Canal de Panamá), the Cabinet Council (Consejo de Gabinete), and the National Assembly (Asamblea Nacional). Its revenue and spending allocations may be of interest to or affect maritime transport, port and logistics services, electricity generation and distribution, drinking water supply, contractors, insurers, and Canal employees. The statement of reasons describes drinking water sales to the National Institute of Aqueducts and Sewers (IDAAN) for distribution in Panama City (Panamá), Colón, La Chorrera, and nearby areas, and names the Miraflores, Mendoza, and Monte Esperanza treatment plants. It also mentions the National Dispatch Center (Centro Nacional de Despacho) and the National Public Services Authority (Autoridad Nacional de los Servicios Públicos) in connection with electricity and regulated services.