Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
Panama Ports Company Commences Arbitration, Invites Panamanian State for Clarity and Consultations to Resolve Matter
Recommend 1 Positive 3 Negative 3 |
||||
|
||||
|
Panama Ports Company S.A. (PPC) advises that it commenced arbitration against the Republic of Panama on 3 February 2026 pursuant to the applicable concession contract and the Rules of Arbitration of the International Chamber of Commerce. The commencement of arbitration by PPC follows a campaign by the Panamanian State specifically targeting PPC and its concession contract spanning a year that has been marked by a range of abrupt actions by the Panamanian State culminating in grave and imminent further damage to PPC, while similar port sector contracts have not been targeted.. The arbitration also follows extensive efforts by PPC spanning a year to consult and avoid disputes. While diligently carrying out port operations and cooperating with the Panamanian State in many ways, PPC also has consistently advised through diverse communications its concerns regarding the State campaign as it has unfolded and sought clarity and consultations to avoid the necessity of arbitration, to no avail. Instead, over the past year, since the start of the present year, and even through recent days, the Panamanian State routinely disregarded communications, efforts to consult, and requests for clarity. The arbitration is based on the concession contract and legal framework that have been enshrined over almost three decades as a “contract-law,” providing legal certainty and long-term respect for the applicable legal and contractual framework. The Republic of Panama has breached the applicable Contract and law. PPC seeks extensive damages based on an assessment of relevant financial data, subject to prompt resolution, and such other requests for relief as may prove necessary. PPC and its investors continue to permanently reserve all rights. As a backdrop to the arbitration, and in addition to the other aspects of its campaign, over the past year, the Panamanian State choose to reverse its longstanding positions regarding the legal and contractual framework, breached its obligations under the contract, and commenced, pursued, and/or supported legal proceedings aimed at destroying the concession contract, which was the result of a transparent international bidding process. As PPC has advised, the Judicial Branch of the Republic of Panama issued an irregular press statement after the closure of the Supreme Court of Justice on the night of 29 January 2026, regarding a ruling to declare Law No. 5 of 16 January 1997 unconstitutional, among other relevant laws and instruments. Such an outcome is diametrically opposed to previous decisions issued by the Supreme Court regarding contracts similar to the PPC contract. The court ruling has not yet been published or become effective. Since early on the morning after the judicial press release, the Panamanian State declared and broadly deployed steps to take over the operations of PPC. With various references to the unpublished court ruling, the steps taken by the State have included unexpected site visits and instructions that PPC, a private company, provide unrestricted access to physical, commercial, and intellectual property and information, as well as to employees, on the basis that the State is “systematizing and executing” a port transition “plan” through “coordinated actions” of State authorities. PPC has continued to manage port operations and respectfully interact with State representatives, including requesting access to the referenced plan and opportunities to consult and coordinate. As PPC has highlighted, PPC and its investor have invested extensively in infrastructure, technology, and human development—an amount multiple times the investment made by any other port operator in the country. These investments have generated thousands of direct and indirect jobs and have been determinant in establishing Panama as a globally recognized port and logistics hub, attracting the world’s leading shipping lines and generating positive impact for the entire nation. Despite recent developments, PPC strongly reiterates its invitation to the Panamanian State for clarity and consultations to resolve this matter. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
