The Minister of Economy and Finance of Panama, Felipe Chapman, presented to the Budget Committee of the National Assembly a request for a transfer of more than 30 million dollars. The funds are intended for two main purposes: the cleanup of areas in Colón province contaminated with munitions and the payment of international arbitrations against the Panamanian State.
These lands were sold to the Panama Canal Authority (ACP), and in previous years were used by the United States military for activities that left behind munitions and other polluting waste.
"We tried to substantially improve the terms and conditions of said sale with the commitment to clear the lands that the Panama Canal Authority has acquired," the minister said during his presentation.
He emphasized that these processes require legal and technical representation specialized in international investment law, and the cost of which justifies the requested budget allocation.
In response to questions from lawmakers about why the State should bear the cost of the cleanup, Chapman reiterated that the remediation was a condition for finalizing the sale of the land to the ACP and that the higher payment received from the authority compensates for the investment in sanitation.
The land in Piña is part of the areas reverted to Panama after the withdrawal of US military forces, and its remediation is a requirement to ensure its safe use by the ACP in logistics expansion projects.
The remaining $5 million from the transfer will be used to cover specialized technical assistance to face international arbitrations filed against the Panamanian State.
The minister noted that the MEF frequently receives arbitration initiatives in a "highly litigious world," and therefore requires high-level technical support.
"Without cleaning these lands, the Panama Canal Authority was willing to pay $26 million, but a cleanup clause was included," Chapman explained.
Minister Chapman emphasized that the transfer of funds responds to contractual and legal commitments that cannot be postponed without affecting the country’s credibility in international negotiations.
The total cost of the cleanup is estimated at $30 million. The Reverted Assets Unit (UABR) currently has $5 million available, so it requires the transfer of an additional $25 million to complete the amount and comply with the agreement with the Panama Canal Authority (ACP).
Of this amount, $25 million will be allocated to pay a company specializing in the remediation of land located in Piña, Colón province.
However, by including the environmental remediation commitment, the final payment, made in January 2026, amounted to $126 million.
"Ultimately, the payment, which was finalized in January of this year, was $126 million," the official explained.
The specific cases are: Petaquilla Minerals: for the Molejón mining project and Orla Mining: for the Cerro Quema mining project.
