The Minister of Economy and Finance, Felipe Chapman, reported on Wednesday that Panama is ready to bear the costs derived from the international arbitration filed by Panama Ports Company (PPC), a subsidiary of the Hong Kong conglomerate CK Hutchison, following the annulment of the port concession by the Supreme Court of Justice. Chapman confirmed that the claim exceeds $1.5 billion, a figure he described as unrealistic when compared to the historical contributions of the contract in force since 1997 and which was declared unconstitutional. The head of the Ministry of Economy and Finance stated that the country will act within the rule of law, defending its interests in the international arbitration and keeping open the possibility of a prolonged process. According to Chapman, Panama could receive up to $100 million during the estimated 18-month port operation period, a figure that would be significantly higher than the income generated under the previous contract, which reinforces the official stance that the transition responds not only to a judicial mandate but also to the profitability of port activity. Chapman confirmed that the Panamanian State will initially assume the legal costs of the arbitration, as is common in such processes. He also highlighted that Panama has a favorable history in international arbitrations over recent decades, which, he said, reduces the risk of a significant fiscal impact. The minister informed that the country is in the process of selecting the lawyers who will represent the State.
However, he stated that if the counterpart offers reasonable and attractive terms, the State has the responsibility to evaluate them. Regarding the possible repercussions of China's reaction to the conflict, he noted that so far, no concrete response representing a significant economic threat to the country has been recorded. Before the first half of March is over, both parties must notify their legal representatives, which will formally initiate a process that could extend for a long time. He added that the Government is still within the required deadlines to advance with its legal strategy.
On the other hand, the minister ruled out the existence of prior negotiations with PPC to reach an out-of-court settlement, emphasizing that the position of the Panamanian State is solid.
