The Supreme Court of Panama has declared Law No. 5 of January 16, 1997, its addenda, and the extension of the concession contract granted to Panama Ports Company unconstitutional. This decision is directly related to the concession contract signed between the Panamanian State and Panama Ports Company, through which the company was assigned responsibility for the development, construction, operation, administration, and management of port terminals for containers, general cargo, bulk cargo, Ro-Ro, and passengers in the ports of Balboa and Cristóbal. According to the company, the concession was awarded through a transparent international bidding process, and since then, it has complied with all its contractual and legal obligations, including state audits. The Court concluded that the challenged laws and acts violate the Political Constitution. The company's statement also warns that the judicial decision not only jeopardizes the PPC contract but also affects the well-being of thousands of Panamanian families who depend directly or indirectly on port activity, in addition to impacting institutional stability, the rule of law, and confidence in the country. In response, the company called for dialogue and coordination with the authorities to avoid the interruption of the concession and to protect port services. The Chinese government also reacted to the ruling, stating that the affected company considers the Panamanian court's decision to be contrary to the laws that approved the concession and that it reserves all its rights, including legal ones. President José Raúl Mulino addressed the nation, reassuring that PPC will continue to operate normally until the ruling becomes final, after which a transition period will begin, culminating in a new concession favorable to Panama.
Supreme Court Declares Panama Ports Contract Unconstitutional
Panama's Supreme Court has ruled the port concession contract unconstitutional, citing violations of the Political Constitution. The operator, Panama Ports Company, has called the decision baseless and warned of severe economic consequences, including job losses and damage to Panama's reputation as an investment hub. The Chinese government has also expressed concern.
