There is no umbrella framework for PPPs in Panama and, as a result, practices vary from sector to sector. In concession projects, including roads and airports, and in cases where state-owned companies own the infrastructure, private contract laws are used as the state-owned firms are the lessors. In the water and sanitation sector the regulatory framework enables private-sector capital.
The electricity industry has a separate framework, which introduced a multi-tariff system and separated the market based on the type of technology and interconnected electrical systems, and thereby increased competition in the sector. Seaports have yet another legal framework and are covered by contract laws approved by Congress, with an ad hoc judicial arrangement for each port. Panama’s government has made attempts to develop a new PPP law (Law No. 349) but has not yet passed it.
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