On December 16 the Panama Canal Authority released its 11 “Guiding Principles” to the national and international press, pointing out that these are the principles under which a long term strategic plan is being formulated for release in 2004. As Canal Administrator Alberto Alemán Zubieta puts it, “long-term planning requires systematic and strategic deliberation, and these principles have served as our 'true north.'“
The plan may lead to a referendum on expanding the canal’s water supplies by building a new lake and the construction of a larger third set of locks that can handle post-Panamax-sized ships. It appears that the document will recommend the damming of the Western Watershed along Colon’s Costa Abajo and across parts of northern Cocle province, in which case it will be the object of bitter controversy. Most of the people who live in the area don’t want to move, there are prominent business leaders and former canal execs who warn that an expansion of the canal as contemplated could not be amortized through ship tolls, and there are environmental questions. One other issue that would likely arise would be the valuation of the La Pintada mining concession, a contemplated copper extraction enterprise that was never promising enough to start but arguably the most valuable piece of property for which compensation will be paid if the Western Watershed is flooded.
A careful reading of the ACP’s statement of principles is instructive both in its assertions and its omissions. After a reference to the “People” come the Customers and the Market, and there are pledges to defend the environment and conserve water resources, but the authority’s role as the holder of immense recreational, electrical generation, fishery and real estate assets --- things that all of a sudden become important if we do a canal expansion that can’t be paid off just with ship tolls --- is not mentioned. They just talk about the “core business.”
The authority also promises to “establish transparent processes,... “support assumptions and decisions with real data” and “always consider viable alternatives.” Which also sounds like something that may be put to its test in canal referendum campaign.
Following are the Panama Canal Authority’s new Guiding Principles:
1. Responsibility to the Panamanian People
The Authority's responsibility to the Panamanian people is paramount.
The Canal belongs to the people and benefits from the Canal should accrue to as many Panamanians as possible. The Authority will plan its future so that it will continually contribute to the economic development and welfare of the people of Panama.
The Authority will adhere to the highest standards of integrity and ethical conduct, and will vigorously promote excellence in all aspects and processes of its business.
The Authority will seek to inform the people about the Canal, its operations and contributions to the community, the watershed and the people of Panama.
2. Responsiveness to the Needs of Customers
High quality customer service is essential. The Authority will excel in responding to the needs of its customers --- ensuring safe, reliable, efficient and uninterrupted service.
The Authority will continue ongoing major maintenance work and capital improvements to the Canal, installing the most robust and up-to-date technology and providing the best training for our world-class work force.
The Authority will also work tirelessly to provide its customers with first-rate service, including new products and services in response to their evolving shipping and maritime needs.
3. Commitment to Market-Oriented, Demand-Driven Business Principles
The Authority has moved successfully from being a public utility to a full business enterprise. The Authority will manage the Canal utilizing modern business principles, recognizing traffic trends and addressing market demand.
The Authority will endeavor to maximize benefits for all of our stakeholders --- the Panamanian citizens, customers and employees --- by strengthening our competitive position and ensuring the long-term viability and profitability of the Canal.
4. Upholding the Canal's Talented and Professional Human Resource
The Canal's most important resource has always been and will continue to be its dedicated and highly skilled world-class work force.
Through its renown merit system, the Authority will continue to recruit and retain the diverse and qualified human resource necessary to guarantee the safe and efficient management, operation and maintenance of the waterway, ensuring that the Authority also meet the future demands of the Canal.
Continuous training programs will serve as tools to develop competencies and skills ensuring the optimum effectiveness and productivity of each employee.
Up-to-date personnel and labor relations policies will ensure a fair and equitable treatment of all Canal employees.
5. Adherence to Sustainable Development Principles and Practices
Sustainable development is key to the continuous operation and future viability of the Panama Canal. The Authority will promote sustainable development --- by providing for the present water needs of the people of Panama City and the Canal, and working to meet future demands by conserving and managing water resources and protecting the Canal watershed.
The Authority will also implement strategies and best practices, exchange knowledge and expertise with relevant local and international institutions in the pursuit of the Canal watershed's sustainable development.
6. Dedication to Environmental Stewardship
Successful Canal operation entails caring for the environment around the Canal area. The Authority is firmly committed to its role as caretakers of the Canal watershed --- the land, its forests, lakes, species, wildlife and their habitat.
The Authority will protect the environment and conserve the natural resources of the watershed.
The Authority will manage all aspects of its business and Canal operation in keeping with the highest international standards of environmental management, creating shareholder and societal value. The Authority will also take a precautionary approach to environmental challenges by incorporating risk assessment and environmental impact assessment, which are geared toward the protection of the environment.
7. Respect for Local Culture, Livelihood and Enlisting Local Participation
Respecting people's culture and livelihood is an integral part of corporate citizenship. The Authority will continue to encourage and respect the culture, norms and values of the local communities in the Canal area.
The Authority will promote sustainable livelihood and contribute to raising the quality of life for the residents of the Canal area. The Authority will also enlist the participation of local stakeholders in the planning process for permanent modernization.
8. Engagement with the International Community
Engaging civil society both locally and internationally is an essential element of our business. The Authority will reach out to our local constituents and to the international community.
The Authority will continue discussions with our local and international stakeholders. We will engage them through consultations and dialogues, including public outreach activities to ensure their voices are heard, understood and addressed.
The Authority will also forge partnerships with policy makers, business and non-government organizations and international institutions to work towards common and shared responsibilities in the areas of shipping, maritime, logistics, environment, sustainable development and international trade.
9. Transparency in Decision-Making
Transparency in decision-making is vital to our business operations. The Authority will make available to the public our financial reports, fiscal year revenues, and updates about Canal operations and the modernization program.
The Authority will establish transparent processes, sustainable conclusions and support assumptions and decisions with real data. The Authority will always consider viable alternatives and options and document its work every step of the way.
10. Commitment to Financially Sound Management
Sound financial management is a fundamental prerequisite of the Authority's core business. The Authority will maintain strong financial accountability and practice prudent decision-making that will ensure its competitiveness and financial success.
11. Securing the Safety of Ships, People and the Canal
The safety of employees and navigating vessels is a primary responsibility for the Canal and its management. The Authority will make every effort to protect the Canal, its employees and customers. The Authority will constantly strengthen security, install state-of-the-art systems, train and equip employees, and enhance security personnel at the Canal.
The Authority will closely coordinate with Panama's security forces and international institutions to ensure the security and safety of ships transiting the Canal.
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