Three resolutions published on October 19, 2026 set the authorized legal fees for Panama’s external representation in international investment arbitrations. Cabinet Resolutions No. 105, 106 and 107, all dated September 29, approve exceptional procurement procedures between the Ministry of Economy and Finance (MEF) and Hughes Hubbard & Reed LLP. Their caps total US$16,611,188.16, excluding the expenses of the proceedings.

Article 1 of Resolution 105 sets a ceiling of US$5,116,627.97 for the case brought by Korea Mine Rehabilitation & Mineral Resources Corporation (KOMIR), identified as ARB/25/20. Resolution 106 authorizes up to US$5,749,578.81 for representation in the Franco-Nevada Corporation proceedings, ARB/24/26. Resolution 107 establishes a maximum of US$5,744,981.38 for the First Quantum Minerals, Ltd. arbitration, ARB/25/18. All three proceedings are before the International Centre for Settlement of Investment Disputes (ICSID).

The amounts are legal fees, not compensation to the claimant companies. Nor do they establish that Panama has already disbursed those sums. The recitals expressly distinguish the expenses of the proceedings: if the contracted law firm covers them, MEF must reimburse it. Accordingly, the sum of the three caps is not the final total cost of the arbitrations and does not quantify potential obligations arising from their outcomes.

The documents also show that the representation predates this publication. According to their recitals, the firm has acted for Panama since April 8, 2025 in the KOMIR case, May 22, 2025 against Franco-Nevada, and March 3, 2025 in the First Quantum proceedings. In the latter and the KOMIR case, the documents describe a reallocation of fees between phases and performance tied to fulfillment of the contractual purpose, with no precise completion date.

For monitoring public finances, the relevant distinction is between contractual authorization, expenditure actually incurred and the eventual arbitral outcome. The resolutions record budget availability for 2026 and provide for amounts corresponding to subsequent fiscal years to be included in later budgets. The publication therefore offers verifiable references for reviewing the contracts, but does not replace the contracts themselves, paid invoices or procedural information for each case.

All three acts take effect upon promulgation. Their scope is to approve the exceptional procurement arrangements described, not to decide the disputes. Establishing the cost actually borne by the State will require comparing contractual performance and reimbursements with the authorized limits and conditions.

Research assisted by Sentinel, with editorial verification of official sources. Discover Legislat.ai