Panama Canal expansion referendum, 2006
Encyclopedia
The Panama Canal expansion referendum was held on October 22, 2006, when the citizens of Panama
Panama
Panama , officially the Republic of Panama , is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The...

 approved the Panama Canal
Panama Canal
The Panama Canal is a ship canal in Panama that joins the Atlantic Ocean and the Pacific Ocean and is a key conduit for international maritime trade. Built from 1904 to 1914, the canal has seen annual traffic rise from about 1,000 ships early on to 14,702 vessels measuring a total of 309.6...

 expansion project by a wide margin.

Constitutional background

According to article 325 of the Panamanian Constitution
Constitution
A constitution is a set of fundamental principles or established precedents according to which a state or other organization is governed. These rules together make up, i.e. constitute, what the entity is...

, any proposal for the construction of a third set of locks or a sea-level Canal
Panama Canal
The Panama Canal is a ship canal in Panama that joins the Atlantic Ocean and the Pacific Ocean and is a key conduit for international maritime trade. Built from 1904 to 1914, the canal has seen annual traffic rise from about 1,000 ships early on to 14,702 vessels measuring a total of 309.6...

 on the existing route that the Panama Canal Authority (ACP) proposes has to be approved by the executive branch and submitted to the National Assembly
National Assembly of Panama
The National Assembly , formerly the Legislative Assembly , is the legislative branch of the government of the Republic of Panama.It is a unicameral legislature, currently made up of 71 members, who serve five-year terms...

 for its approval or rejection. It also has to be submitted to a national referendum no earlier than three months after its approval by the National Assembly.

Proposal

The Panama Canal expansion proposal
Panama Canal Expansion Proposal
The Expansion of the Panama Canal is a project that will double the capacity of the Panama Canal by 2014 by allowing more and larger ships to transit...

 was presented on April 24, 2006 by President Martín Torrijos
Martín Torrijos
Martín Erasto Torrijos Espino is a Panamanian politician and the former President of the Republic of Panama.Torrijos was elected President on May 2, 2004...

 to the Panamanian people after years of study by the ACP. The largest project at the Canal since its original construction, the expansion will double its capacity and allow more traffic.

The project will create a new lane of traffic along the Canal through the construction of a new set of locks. Details of the project include the following integrated components:
  • The construction of two lock
    Panama Canal Locks
    The Panama Canal Locks, which lift ships up 25.9 m to the main elevation of the Panama Canal, were one of the greatest engineering works ever to be undertaken at the time, eclipsed only by other parts of the canal project. No other concrete construction of comparable size was undertaken...

     complexes, one on the Atlantic side and another on the Pacific side, each with three chambers, which include three water-saving basins;
  • The excavation of new access channels to the new locks and the widening of existing navigational channels; and
  • The deepening of the navigation channels and the elevation of Gatún Lake's maximum operating level.


According to the ACP, the project will have an estimated cost of US$5.25 billion, will be self-financed by tolls increase and will take up to 7 or 8 years of construction time.

Panama's Cabinet
Cabinet (government)
A Cabinet is a body of high ranking government officials, typically representing the executive branch. It can also sometimes be referred to as the Council of Ministers, an Executive Council, or an Executive Committee.- Overview :...

 approved the project, and on July 14, the National Assembly unanimously approved the proposal to expand the Canal. In addition, the Assembly created and passed a law mandating a national referendum
Referendum
A referendum is a direct vote in which an entire electorate is asked to either accept or reject a particular proposal. This may result in the adoption of a new constitution, a constitutional amendment, a law, the recall of an elected official or simply a specific government policy. It is a form of...

 in which the people of Panama would vote to approve expansion. The referendum was held on October 22, 2006, the first Sunday at least 90 days after the legislation was signed.

Referendum question

The referendum used a single ballot
Ballot
A ballot is a device used to record choices made by voters. Each voter uses one ballot, and ballots are not shared. In the simplest elections, a ballot may be a simple scrap of paper on which each voter writes in the name of a candidate, but governmental elections use pre-printed to protect the...

 divided in half with (Yes) at the left with a green background and No at the right with a red background. Above these two options the text of the question read:
Do you approve the proposal of construction of a Third Set of Locks on the Panama Canal
Panama Canal Expansion Proposal
The Expansion of the Panama Canal is a project that will double the capacity of the Panama Canal by 2014 by allowing more and larger ships to transit...

?

Campaign

Opposition to the project was vigorous as skeptics questioned the government's cost estimates and raised fears that corruption would doom the project. But the government's campaign for the expansion, the largest modernization of the canal in its history, was even more intense. Officials portrayed a "sí" vote as a vote for the children of Panama. Without an expanded canal, officials predicted, shipping traffic would find other routes and Panama's growing economy would dry up.

Voting

The voting process went smoothly, without major events that could tamper the results. The voter turnout
Voter turnout
Voter turnout is the percentage of eligible voters who cast a ballot in an election . After increasing for many decades, there has been a trend of decreasing voter turnout in most established democracies since the 1960s...

 was low, 43.32%.

Voting
Voting
Voting is a method for a group such as a meeting or an electorate to make a decision or express an opinion—often following discussions, debates, or election campaigns. It is often found in democracies and republics.- Reasons for voting :...

 took place on schedule from 7 am to 4 pm but people still in line at that time were allowed to vote. Unofficial results were made known by the Electoral Tribunal by its system of unofficial results reporting, just 30 minutes after the voting ended. This system consists of series of data-collecting centers that communicate with the Panama City
Panama City
Panama is the capital and largest city of the Republic of Panama. It has a population of 880,691, with a total metro population of 1,272,672, and it is located at the Pacific entrance of the Panama Canal, in the province of the same name. The city is the political and administrative center of the...

 Press Room of the Electoral Tribunal. This centers receive the unofficial results given by each polling station by phone, cell phone and other means, while the official results begin their journey to the different counting centers. This system has proved highly successful in previous elections and has given almost the same results as the official count. Under this system, by 6 p.m. (2 hours after the voting ended) the results of approximately 25% of polling stations were available and the likely approval of the project was known. However, the official results are the responsibility of the National Scrutiny Junta, and that took some days (3) as official declarations came from all over the country to Panama City
Panama City
Panama is the capital and largest city of the Republic of Panama. It has a population of 880,691, with a total metro population of 1,272,672, and it is located at the Pacific entrance of the Panama Canal, in the province of the same name. The city is the political and administrative center of the...

.

Reactions to the results

  • President Martín Torrijos
    Martín Torrijos
    Martín Erasto Torrijos Espino is a Panamanian politician and the former President of the Republic of Panama.Torrijos was elected President on May 2, 2004...

     said this was the most important decision this generation
    Generation
    Generation , also known as procreation in biological sciences, is the act of producing offspring....

     had to take. He considered the decision an opportunity that has to include all Panamanians, the ones that voted Yes, the ones that voted No, the ones that decided not to vote and the ones too young to vote.
  • The Republic of China
    Republic of China
    The Republic of China , commonly known as Taiwan , is a unitary sovereign state located in East Asia. Originally based in mainland China, the Republic of China currently governs the island of Taiwan , which forms over 99% of its current territory, as well as Penghu, Kinmen, Matsu and other minor...

     (commonly known as "Taiwan") congratulated Panama
    Panama
    Panama , officially the Republic of Panama , is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The...

     on its referendum result and offered to participate in the expansion of the Panama Canal
    Panama Canal
    The Panama Canal is a ship canal in Panama that joins the Atlantic Ocean and the Pacific Ocean and is a key conduit for international maritime trade. Built from 1904 to 1914, the canal has seen annual traffic rise from about 1,000 ships early on to 14,702 vessels measuring a total of 309.6...

    .
  • The trade organization Dansk Rederiforening (the Danish Shipping Council) was pleased with the decision to expand the Panama Canal and believe that the expansion will be positive both to the Danish
    Denmark
    Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...

     and the international shipping industry.
  • U.S. Ambassador
    Ambassador
    An ambassador is the highest ranking diplomat who represents a nation and is usually accredited to a foreign sovereign or government, or to an international organization....

     William Eaton said that "There will be an impact on the pocketbook. The transit costs will be cheaper, and that will have an effect on the market. This is important to the U.S. It's important to our economy".
  • John LaRue, executive director of the U.S. port
    Port
    A port is a location on a coast or shore containing one or more harbors where ships can dock and transfer people or cargo to or from land....

     of Corpus Christi, Texas
    Corpus Christi, Texas
    Corpus Christi is a coastal city in the South Texas region of the U.S. state of Texas. The county seat of Nueces County, it also extends into Aransas, Kleberg, and San Patricio counties. The MSA population in 2008 was 416,376. The population was 305,215 at the 2010 census making it the...

    , said "The (canal project) just improves trade, the West Coast ports have grown dramatically because of all the Asian cargo. Routing ships to the Gulf would save the West Coast's infrastructure and benefit us as all. I don't see any negatives."
  • Fitch Ratings
    Fitch Ratings
    The Fitch Group is a majority-owned subsidiary of FIMALAC, headquartered in Paris. Fitch Ratings, Fitch Solutions and Algorithmics, are part of the Fitch Group....

     stated that the approval of the Panama Canal expansion referendum could yield positive results for the country in the long term in terms of higher external and fiscal receipts and GDP growth prospects. However, the referendum itself will not have an immediate impact on Panama's sovereign ratings, as uncertainties remain about debt financing, future revenues from tolls, and Panama's ongoing fiscal consolidation.

Polls

The dates listed are normally the date the survey was concluded, not the date it was published. Most news and political affairs sources use the convention of using the last date that the poll was conducted in order to establish the inclusion/exclusion of current events. Only polls after the proposal unveiling (April 24, 2006) are included.
Polling Firm Date Link Yes No Undecided
Dichter & Neira October 8, 2006 PDF 79% 21%
PSM Sigma Dos October 3, 2006 HTML 72% 21% 7%
CID Gallup October 2, 2006 HTML 77% 10% 13%
PSM Sigma Dos September 6, 2006 HTML 66% 23% 11%
Dichter & Neira September 3, 2006 HTML 63.9% 24.8% 11.3%
Dichter & Neira September 3, 2006 HTML 62.7% 33.7% 3.6%
Dichter & Neira August 6, 2006 HTML 54.4% 17.1% 28.5%
PSM Sigma Dos July 10, 2006 HTML 66% 23% 11%
Dichter & Neira June 4, 2006 HTML 57.9% 19.8% 22.3%
Dichter & Neira May 8, 2006 HTML 57.3% 27.2% 15.5%
  1. This poll was done as a simulated referendum, using a similar ballot to the one used on the October 22 referendum, having a secret vote. People that said that they were definitely not going to vote (16%) were excluded from this simulation. This exercise had no null or blank votes.
  2. In this poll the question was made out loud and the answer was registered.
  3. This time the same people were asked to make a simulated vote too. People that said they were not going to vote on the referendum were excluded (7.8%).

The margin of error
Margin of error
The margin of error is a statistic expressing the amount of random sampling error in a survey's results. The larger the margin of error, the less faith one should have that the poll's reported results are close to the "true" figures; that is, the figures for the whole population...

in these surveys is typically between 2 and 2.9%. See the links for actual error values associated with particular surveys.

External links

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