“We are working on a plan in case that [Panama’s Supreme Court] ruling goes against the extension of the contract” for CK Hutchison, said Jose Ramon Icaza, Panama’s minister of canal affairs.
“In that case, we have to step in as the Panama Maritime Authority to take control of that concession, without generating a disruption of the supply chain,” he said in an event with the Atlantic Council’s Adrienne Arsht Latin America Centre on Monday.
CK Hutchison, owned by Hong Kong billionaire Li Ka-shing, holds a 90 per cent stake in Panama Ports Company (PPC), which had a 25-year concession to operate the Balboa and Cristobal ports that was renewed in 2021.
02:05
Panama formally exits China’s Belt and Road Initiative as US claims ‘victory’ in decision
Panama formally exits China’s Belt and Road Initiative as US claims ‘victory’ in decision
However, the comptroller general filed two suits with the Panamanian Supreme Court in late July, aiming to declare the agreement unconstitutional and nullify the contracts on the basis that the renewal did not follow the required legal steps.
“The other scenario that could happen is that at some point the Republic of Panama can have a mutual agreement with CK Hutchison, and have an orderly transition of those port concessions,” the minister said.
