Panama's Ministry of Economy and Finance is considering modifying the minimum investment thresholds for Public-Private Partnership (PPP) projects to increase the participation of national companies, as suggested by the Panamanian Chamber of Construction (Capac).
According to the Ministry, any changes require an in-depth analysis, taking into account transaction costs, institutional capacity, and associated risks. The regulation must preserve its original purpose of structuring large-scale projects through financially sustainable mechanisms.
The Ministry must balance promoting national companies with maintaining open competition, adhering to the principles of equal treatment, free competition, and economic efficiency enshrined in public procurement law.
The rehabilitation of the East Pan-American Highway, the first project executed under this model, will allow authorities to test the law and make necessary corrections.
Creating differentiated categories for medium-scale projects and formalizing procedures for private initiatives, ensuring transparency, prior fiscal evaluation, and effective competition, are also highlighted as viable modifications.
Capac's president, Alejandro Ferrer Solís, stated that it would be important for the new legal framework to allow more Panamanian companies to participate, either individually or through consortia, as the projects under this system exceed $250 million, a significant amount for the local market.
To strengthen the regulation, other adjustments could be made, such as establishing more detailed rules on payment guarantees, including mandatory trusts, priority mechanisms, and clear budgetary programming rules, as well as specific provisions on complementary revenues and ancillary exploitation modalities to improve bankability.
They noted that the proposal could be considered as long as it is designed based on objective, proportional criteria, compatible with international treaties and the value-for-money principle, which aims to optimize the use of public resources to achieve concrete and sustainable results over time.
"We want to find a way for Panamanian companies to participate as consortia, and for those that include Panamanian contractors to be better evaluated to give them the opportunity to participate," he affirmed.
