Two months before the end of fiscal year 2024, Ricaurter Vásquez, administrator of the Panama Canal, announced on July 24 that income is below what was established in the budget, but remains confident that the economic results in terms of the profits will meet the established expectations.

“The income is lower, but the economic results in terms of the usefulness of the Panama Canal will meet the expectations established in the budget,” defended Vásquez, in statements during his participation in the first National Congress of Hydrographic Basins.

For the close of fiscal year 2024, which runs from October 1, 2023 to September 30, 2024, the budget of the Panama Canal amounts to $4,776.5 million and with contributions to the State of $2,470.8 million, an estimate lower than the one that was presented for the 2022-2023 period, which was $2,544.6 million, about $74 million less.

In 2023, the Panama Canal suffered the effects of the extension of the drought, which affected the capacity of the lakes and, subsequently, the reduction in the number of transit.

Now with the arrival of the rainy season in 2024, the flow of this interoceanic route has normalized.

For example, Vásquez explained that he will follow the schedule for increasing ship traffic established for this week of 34 and August 35 because the level of Gatun Lake allows it. However, I have clarified that they will also have to reserve enough water in the lake to make it through the dry season of 2025.

“The level of Gatun Lake today should be above 84 feet, a behavior that is below the norm, but much higher than what it was in 2023. The recent rains have helped, but they do not solve the problems,” he stated. the administrator of the Channel.

Indian River

Regarding the Indio River, Vásquez ruled out that the budget of the Panama Canal for 2025, of which they anticipate $5.6 billion, does not contemplate investments in this project, rather it seeks to continue developing the work that they normally do as an institution.

“Only when we have a type of agreement, understanding and consensus with the communities, then, can we do much more work in Río Indio,” explained the Canal administrator.

He added that “it is possible that some partial work can be achieved to the extent that we can get people’s approval and have work that is collaborative.”

His comments come when the Supreme Court of Justice (CSJ) declared unconstitutional Law No. 20 of 2006, which restores the validity of Law No. 44 of August 31, 1999, on the limits of the hydrographic basin.

The entity assured that in compliance with this maritime ruling, they will exercise the constitutional power over the geographical area contained in Law No. 44 of 1999, in order to safeguard water resources.

“What makes the fundamental change is that there is now a geographical definition that was previously absent about the Basins that could be administered by the Canal,” Vásquez mentioned.

CICH meeting

The Panama Canal began this Monday, July 22, the first meeting of the Interinstitutional Commission of the Panama Canal Hydrographic Basin (CICH), to address the challenges that the interoceanic waterway has in water matters and resource management.

In this regard, Vásquez said that the start of these meetings is important because although the work needed in the hydrographic basin must be led by the Panama Canal, it is still a work that requires the participation and commitment of the authorities and communities. .

I have highlighted that this first meeting is one of several, for which they have already established a work schedule.

“In fact, the next meeting was scheduled for October 9, while there will be quarterly meetings, where the representatives of each of the entities have to meet monthly to develop a work schedule to get closer to the communities that demand solutions that They are relatively basic*, Vásquez said.

Among these basic needs are access roads, how to grow crops, that health centers are equipped to care for the communities and that schools are suitable for student participation.

The administrator of the Panama Canal defended that everything that has been done in the hydrographic basin has been the work of the people, for whom they as an institution have been a vehicle to coordinate all the work.

“This watershed management that has been done here is based on sustainable agriculture, without agrochemicals, a lot of education and training, which are what have given the results that we see today,” he highlighted.