The ACP has said the project has caused a large amount of sediment to enter the water, which could constitute a health risk. The ACP has given the company until today to present an action plan to remedy the irregularities.
If no plan is presented, the ACP will suspend work at the site. Work could also be suspended if the plan is deemed to be insufficient.
The project was approved in January 2015.
In addition to erosion, the agency found a number of health risks due to garbage on the site, which provided a breeding ground for mosquitoes.
The ACP has taken a much stronger stance on the project than the Panama Municipal Government, which stated that "repeated failure" to meet environmental standards "is not grounds for the revocation of an environmental impact study.".
The project has contaminated the Caimito River, which empties into Miraflores Lake, which is in the Panama Canal basin.