The Hong Kong multinational CK Hutchison has initiated an international arbitration process against the Panamanian State considering that it has harmed its investments after the decision to terminate the concession of two port terminals in the country. For this reason, the company claims compensation of 1.5 billion dollars (1.285 billion euros).
The Panamanian Executive took control of the ports of Balboa and Cristóbal, located in the Panama Canal and managed until then by the subsidiary Panama Ports Company, belonging to the Hong Kong-based group, "seizing properties, equipment, technology, employees, and confidential and protected documents and materials," as detailed by CK Hutchison in a statement.
The company argues that Panama initiated a strategy that included a change of criteria in its legal position regarding the concession, which had been in effect for nearly 30 years, with the aim of replacing the subsidiary of CK Hutchison, trying to "systematically cover up its conduct through misinformation."
After the notification of the end of the concession, the Panamanian Government has only agreed to hold a meeting with the company and has not made any compensation offer, which is why the corporation demands the substantial indemnity "for breach of contractual obligations and international law."
"Panama has proven to be a high-risk country that ignores the rule of law, the legal form of companies, the scope of contracts, the scope of arbitration agreements, the rights derived from treaties, and the resolution of contractual disputes," states the note released by the company.