The Panamanian government has outlined plans to invest over $8.5 billion to enhance logistics competitiveness, as part of its Strategic Plan 2025-2029 presented two weeks ago. The Strategic Plan includes a five-year indicative public investment plan, providing a “sneak preview” into upcoming government tenders, which can be of interest to international businesses.
The investments in Logistics Competitiveness & the Panama Canal are centered around three main pillars:
- Modernizing infrastructure
- Sustainable water resource management
- Promoting environmental sustainability
Specific projects include developing a reservoir on the Indio River and advancing the Canal’s decarbonization efforts, which together require investments ranging from $1.8 billion to $2 billion over six years. The feasibility of building a gas pipeline to transport liquefied natural gas (LNG) from U.S. ports in the Gulf of Mexico to Asia is also under evaluation.
Additional investments focus on designing strategic road corridors and secondary networks to improve connectivity between ports, airports, free trade zones, the Pan-American Highway, and other key roadways. Implementing a model for storage, processing and supply of crude oil is also proposed, as well as upgrading and digitizing customs processes and the development of the Foreign Trade and Logistics Technology Portal (Portcel).
Other projects with opportunities for foreign businesses are mainly in the areas of renewable energy, health, waste management, water treatment, health and agriculture. Below a selection:
General
- Implement a new air traffic control system and develop systems for the administration of aeronautical and meteorological information
Energy & Water
- Install solar photovoltaic systems in rural areas and indigenous regions to electrify these remote or hard-to-reach areas
- Build the fourth 500 kV transmission line and expand the number of renewable energy plants, which would strengthen the National Electric System
- Diversify the electrical matrix and participate in regional energy integration, including green hydrogen projects
- Build and expand infrastructure nationwide, from water treatment plants, aqueducts, and drinking water supply systems, to wastewater treatment plants, sanitary systems, and sewers
- Encourage the use of technology such as remote sensors, drones, satellite images, networks of meteorological stations and geographic information systems (GIS) for the management and handling of watersheds
Waste Management
- Launch a river decontamination program in Panama City
- Update and strengthen waste management with the allocation of adequate technical personnel and sufficient resources
- Expand the basic sanitation program, eliminating waste from rivers. Promote the comprehensive treatment of urban solid waste in line with population health, environmental care and the circular economy
- Replace landfills and/or waste dumps with the use of alternative technologies such as grate incinerators and fluidized bed machines
- Create a system for producing gases derived from waste and provide a definitive solution to the Cerro Patacón problem. Promote the use of efficient technologies that use heat to convert waste into energy for the electrical grid.
- Build and expand infrastructure nationwide, from water treatment plants, aqueducts, and drinking water supply systems, to wastewater treatment plants, sanitary systems, and sewers
Health
- Build and upgrade hospitals and health centers, including the new Doctor Manuel Amador Guerrero Hospital in Colón, the Metetí Hospital (in Darién), the new trauma center, and the Children’s Hospital
- Expand the Network of Local Primary Health Care Units (ULAPS) and polyclinics, in addition to providing equipment with modern technology
- Deepen the use of electronic records and implement telemedicine services and digital systems that simplify appointment scheduling
- Encourage precision medicine, biotechnology, and health data management to improve the quality, accessibility, and efficiency of health services, including primary care
Agriculture
- Adopt precision agriculture, agricultural biotechnology, and value chain innovations to increase food security, productivity, and resilience of the sector to climate change
- Transform the agro-export basket towards more industrialized products, taking advantage of Panama’s strategic location and logistics infrastructure