CHAPTER VII (CONCESSIONS FOR TOURIST DEVELOPMENT)
Article 34. As recommended by the Board of Directors of IPAT and ("1)) subject to ratification by the Public Finance, Economic Planning and Policy Committee of the Legislative Assembly of the Republic of Panama). The Executive Branch is authorized to grant for tourist use in accordance with IPAT Master Plan, without affecting any preexisting rights, periods of up to twenty (20) years, concessions for islands Government owned lands, lands requiring fills, and areas for the construction of marinas and piers that the Government may decide to devote to public tourist activity.
Article 35. Not withstanding the provisions of the above article, any concession contracts may be made for a period of up to forty (40) years in the case of projects whose investment amount, economic impact and job generating potential require a longer contract term in the judgement of the boards or Directors of IPAT by means of a justified resolution ("2) duly rafted by the Public finance, Economic Planning and Policy of the Legislative Assembly of the Republic of Panama whit the exemption of
concession of reverted property under the jurisdiction of the Interoceanic Region Authority, which in this case is the organization in charges of granting the appropriate concessions.
Article 36. Noncompliance with the period established for a concession to develop authorized tourist activities that authorized should cause the revocation of the concession. It is understood that in this case any improvement built in the area shall become property of the Government at no-cost to it, not with standing any penalties applicable under the Law.
Article 37. The following is required to apply for a concession:
Submission of the project budget, its technical specifications, and the appropriate project schedule;
Proof of payment of the required fees;
A description of the type of services to be rendered, and their benefits to users,
Certifications establishing the financial means and source of the applicant's resources.
The applicant's experience in similar projects. The agency responsible for granting a concession shall provide continuous inspection service in all stages of the project, in order to ensure proper compliance with the terms of the concession.
Article 38. Concessionaires or their subcontracts, as the case may be, shall comply with the approved project schedule until completion of the project. Noncompliance of the schedule or the approved technical specifications may cause the administrative revocation of the contract, forfeiture of the performance bond posted, and revocation of all rights under the concession contract.
Article 39. Prior to declaring them as finally awarded, any concessions granted under this Law, including their terms shall be published in local newspapers for a period of fifteen (15) consecutive days.
CHAPTER VIII ( FINAL PROVISIONS)
Article 40. The Government shall consider native Indian territories as tourist development zones, and shall promote native and rural cultures and traditions as tourist attractions.
Article 41. (Transitory). Any applications for contracts with the Government of Panama being processed on the date this Law is promulgated may continue with the procedure established in Cabinet Decree No. 102 of June 20, 1972, for the purpose of obtaining the benefits set forth in that Decree, which shall remain in force only for such purposes.
Article 42. (Transitory). Any contracts for the operation of tourist activities in force on the date of promulgation of this Law are valid until the expiration of their respective terms. Nonetheless, if a concessionaire wishes to make additional investments, it must apply for incentives under this Law and meet its requirements.
Article 43. This Law supersedes Law Decree No. 26 of September 27, 1967 as amended by Law No.81 of December 22, 1976; Cabinet Decree No.77 of March 18, 1971; Cabinet Decree No. 102 of June 20, 1972 and any legal provisions and regulations contrary to it.
Article 44: This Law shall become effective upon its promulgation.
PROMULGATED AND PUBLISHED.
IN PANAMA CITY, ON THE 10 DAY OF THE MONTH OF MAY OF
NINETEEN HUNRDED AND NINETY FOUR.
THE PRESIDENT ARTURO VALLARINO
THE SECRETARY GENERAL
RUBÉN AROSEMENA VALDÉS
NATIONAL EXECUTIV BRANCH
PRESIDENCY OF THE REPUBLIC
PANAMÁ REPÚBLIC DE PANAMÁ,
14 OF JUNE OF 1994
GUILLERMO FORD BOYD
IN CHARGE OF THE PRESIDENCY OF THE REPUBLIC
RICARDO A. FÁBREGA
MINISTRY OF COMMERCE AND INDUSTRIES