Panama’s Supreme Court has annulled port concession contracts held by Panama Ports Company (PPC), a subsidiary of Hong Kong-based CK Hutchison Holdings, after ruling that the agreements violated the country’s constitution and did not serve the public interest.
The court said the contracts covering the Balboa and Cristobal container terminals at the Pacific and Atlantic entrances of the Panama Canal were unconstitutional.
According to the court, the agreements granted exclusive privileges and tax exemptions that were not available to other operators, lacked environmental impact assessments and required the Panamanian government to obtain the company’s approval before granting future port concessions.
While the decision was announced late on Thursday, the full written ruling explaining the legal reasoning has not yet been released. The decision was first obtained by local television station TVN and later confirmed by a court official.
Panama Ports Company has operated the two ports since the 1990s under
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