The Panama Canal Authority (ACP) is the entity of the Government of Panama established under Title XIV of the National Constitution with exclusive charge of the operation, administration, management, preservation, maintenance, and modernization of the Canal, as well as its activities and related services, pursuant to legal and constitutional regulations in force, so that the Canal may operate in a safe, continuous, efficient, and profitable manner.

An Administrator and a Deputy Administrator head the ACP under the supervision of an 11-member Board of Directors. The Administrator is the highest-ranking executive officer and legal representative of the Authority, and is responsible for its administration and the implementation of the policies and decisions of the Board of Directors. The Administrator is appointed for a seven-year term, and may be re-elected for an additional term.

The appointment of the 11 members of the Board of Directors is made as follows:

• Nine directors are appointed by the President of the Republic of Panama with the consent of the Cabinet Council and ratification by an absolute majority of the members of the Legislative Assembly.
• One director is designated by the Legislative Branch, and may be freely appointed or removed thereby.
• The President of the Republic designates one director, who shall chair the Board of Directors and have the rank of Minister of State for Canal Affairs. The Canal Affairs Minister attends Cabinet Council meetings, having the right to voice and vote.

The members of the first Board of Directors were appointed for overlapping terms to ensure their independence from the country's administrations. The Panama Canal constitutes an inalienable patrimony of the Republic of Panama; therefore, it may not be sold, assigned, mortgaged, or otherwise encumbered or transferred. The legal framework of the Panama Canal Authority has the fundamental objective of preserving the conditions for the Canal to always remain an enterprise for the peaceful and uninterrupted service of the maritime community, international trade, and the Republic of Panama.

Panama Canal Expansion Takes Major Step Foward

NATIONAL ASSEMBLY UNANIMOUSLY APPROVES EXPANSION PROPOSAL, PASSES LAW MANDATING REFERENDUM

PANAMA CITY, Panama, July 17, 2006 -

The Panama Canal Authority's (ACP) proposal to expand the Panama Canal is one step closer to becoming reality. On Friday, July 14, Panama's National Assembly unanimously approved the proposal to expand the Panama Canal. In addition, the Assembly created and passed a law mandating a national referendum in which the people of Panama will vote to approve expansion. The referendum will be held October 22, 2006, the first Sunday 90 days after the legislation is signed.The National Assembly's decision was reached after several rounds or "Debates", including a public hearing. In the last Debate the Assembly voted to approve the proposal and the law mandating a referendum."Expansion would be good for the maritime industry, and good for world trade. Now, the decision rests with the Panamanian people", said ACP Administrator/CEO Alberto Alemán Zubieta.The Panama Canal expansion would be the largest project at the Canal since its original construction. The project would double the waterway's capacity and allow more traffic by creating a new lane through the construction of a new set of locks. An expanded Canal would benefit the people of Panama and world trade, and help maximize Panama's strategic location to become the great maritime hub of the Americas. Expansion will also increase capacity at one of the world's critical trade arteries, allowing the vital "All-Water Route" to continue to grow.