Assembly approves Canal budget

Panama’s National Assembly approved in third and final debate the budget of the Panama Canal for fiscal year 2020.

It is estimated that there will be revenues of $3,426.1 million and contributions to the National Treasury for $1.820.1 million.

The budget was approved after its support by the Minister of Channel Affairs and Chairman of the Board of Directors, Aristides Royo and the administrator of the Canal, Ricaurte Vásquez Morales.

The National Assembly approved the ACP budget.

The National Assembly approved the ACP budget.

The budget for the fiscal year includes necessary resources – for $1,274.5 million – for Canal operations and for the maintenance of its equipment and infrastructure.

In addition, funds will be allocated for projects such as the deepening of anchorage A, improvements to the infrastructures of visitor centers, expansion of the capacity of the Paraíso dock and widening of access to the Balboa dock, among other vital projects in order to ensure sustainability and competitiveness of the Canal and strengthening of the sea route through Panama.

As for the preparation of the budget, it is the product of a detailed review by the Administration and of the analysis of the Board of Directors to obtain a robust project, which was first submitted to the Cabinet’s approval, as established in the Constitutional Title of the Panama Canal.

The fiscal validity of the Canal begins on October 1 and extends until September 30 of the following year.

Tonnage increase

The budget was updated in order to incorporate the variation arising from the modification of tolls on various ship segments, which will come into force during fiscal year 2020.

In fiscal year 2020 an increase of $189.4 million in revenue is estimated in the budget from transits compared to the budget of 2019.

It is anticipated that the Canal will transit 493.2 million tons CP/SUAB (Universal System for Ship Measurement of the Panama Canal) representing an increase of 42.5 million tons CP/SUAB 97 with respect to the 2019 budget.

Likewise, other revenues for the next fiscal period come from the sale of electricity for $42.4 million and the sale of drinking water for $36.3 million.

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