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and materials, and $16.7 million for liberalized retirement benefits, in accordance with the implementing legislation.
The appropriation requested for 1981 represents an increase of $8.2 million over the amount appropriated for operations in 1980. Most of this increase reflects pay raises and other cost escalations, offset by a decrease of $6.7 million in reimbursable technical support services to Panama. However, the 1981 program does provide for a higher level of maintenance in the transit area, additional pilots, tug crews, and deckhands related to increased transit work-loads, and industrial training.
With respect to industrial training, an expansion of the apprentice training program will allow a greater number of local recruitments for skilled labor benefiting the Commission in the long term and meeting the requirement for increased participation by Panamanians in the operation of the Canal.
The $78.6 million for Treaty payments to Panama is comprised of a $10 million fixed annuity payment, a $10 million payment for public services that Panama is now providing, and a $58.6 million payment calculated on the net tons transited.
CAPITAL PROGRAM
The Commission's capital program reflects $23 million in budget authority for 1981 and is dedicated primarily to meet the needs of the Canal in terms of increased traffic capacity and safety and efficiency in operations. Accordingly, the major portion of the resources requested, $17.9 million, will be applied to the transit operations function.
Improvements in the waterway itself are designed to facilitate the transit of the larger class of ships, now using the Canal in increasing number, and to ease the navigational problems in certain difficult curves in the waterway. These projects will permit two-way traffic in some areas now restricted to one-way movements and reduce the potential for marine accidents through improvements in navigational safety. Also programmed in this year is construction of a ship tie-up station near the Pedro Miguel Locks which will contribute directly to an increased throughput of transiting ships.
We have planned the obligation of $7.4 million for improvement and additions to our floating equipment in 1981. The major procurement is for a replacement tugboat at the cost of $4 million. This acquisition is part of a long-range plan to replace over-aged and underpowered tugboats and to increase the tug fleet as the transit workload demand materializes. The 1981 program also provides for the replacement of a large work boat and a small dredge tender, and a dump scow.
Another project of major significance in our capacity improvement efforts is the installation of additional lighting in the Locks chamber at Gatun Locks at a cost of $1.3 million. We presently restrict the transit of the larger class of vessels to daylight. The added light in the Locks chambers will allow such transits to begin earlier and clear later in the day, and facilitate the handling of other wide beam ships in the Lock chambers at night time.
EMERGENCY FUND
The Panama Canal Act of 1979 authorized the establishment of the Emergency Fund. The request for a $25 million authorization for 1981 is based upon a current assessment of the amounts that could be required immediately for additional expenditures over those appropriated to defray emergency expenses or to maintain continuous, efficient, and safe operation of the Canal. Factors considered in arriving at this amount were the costs of correcting slides, removal of vessels obstructing the Canal, clean up of a major oil spill, and the potential for additional costs of increased Canal traffic. In arriving at that figure, it was also presumed that in the event that $25 million proves insufficient to overcome the emergency, a request authorizing additional funding would be expetitiously processed.
PANAMA CANAL COMMISSION FUND
The Panama Canal Act of 1979 provides that no funds may be appropriated to or for the use of the Commission for any fiscal year in excess of the revenue estimated for deposit in the Panama Canal Commission Fund during the year, plus prior deposits to the fund remaining unexpended at the begining of such year. The 1981 request is in compliance with such provisions of this act.