Panama

Panama's dedicated PPP framework was established by Law 93 of 2019 and Executive Decree 840 of 2020.¹ The National PPP Secretariat provides technical support to contracting agencies, while a governing body oversees key decisions. However, the framework operates alongside the older administrative concessions regime under Law 5 of 1988.² This overlap allows functionally similar projects to be structured under different procurement, appraisal and oversight requirements, potentially reducing regulatory consistency and predictability for investors.³ Recent refinements include new project eligibility and technical assessment manuals in 2024⁴ and Executive Decree 58 of 2025, which streamlined preparation procedures for certain projects.⁵

Panama has considerable experience with private infrastructure investment, but implementation under its dedicated PPP framework is relatively recent. The Pan-American Highway East project, awarded in 2024, began construction in 2025 and secured financing exceeding US$281m in January 2026.⁶ The Pan-American Highway West project also advanced, receiving its order to proceed in May 2026, with an estimated investment of US$312m.⁷ The government subsequently authorized procurement of the US$606.5m Centenario Highway project,⁸ while the proposed maximum-security prison PPP received approval to advance toward tendering.⁹ Other initiatives, including electricity transmission, remain under preparation.¹⁰ These developments signal growing activity, although the pipeline has yet to translate into a sustained flow of completed PPP transactions.

Political support for PPPs has remained relatively consistent across administrations, with the 2019 framework maintained and progressively refined. The current administration (2024 to present) has demonstrated continued commitment through the advancement of major highway projects and efforts to expand the pipeline.^11,12 The framework also received legislative support when enacted in 2019, although recent evidence of explicit multiparty endorsement is limited. No sustained opposition specifically targeting PPPs has been identified. In September 2026, the government introduced legislation to streamline PPP procedures and extend the framework's application to additional public institutions, including the national water utility and Social Security Fund.¹³

Panama's principal strengths lie in the regulations and institutions category and the risk management and contract monitoring category, both ranking 5th regionally. Its dedicated PPP institutions, interagency coordination and competitive procurement procedures rank among the region’s strongest, while structured project selection processes contribute to its relatively strong performance in this area. The framework also provides relatively strong contractual risk allocation mechanisms, contingent-liability management and lenders’ step-in rights, alongside contractual protections against adverse government actions.

Panama's environmental and social sustainability requirements remain relatively weak, particularly regarding climate resilience and social equitability in project selection. The absence of dedicated project development and viability gap funds also limits support for project preparation and implementation. Despite a relatively developed financial environment, fewer tendered projects have reached financial close in recent years, highlighting challenges in converting opportunities into financed transactions. Finally, Panama lacks systematic ex-post evaluation of operational PPPs, limiting opportunities for institutional learning.

Panama has made progress on translating its PPP framework into project implementation, with the advancement of major highway concessions under the 2019 law. Contract transparency has also improved through the publication of periodic reports on ongoing PPP projects, providing greater visibility into implementation and government commitments. New technical guidance issued in 2024 and regulatory amendments in 2025 have also refined project preparation procedures, helping to strengthen the framework as the country gains experience implementing PPPs.