Canal Megaprojects

Did you know that Panama is preparing for a new generation of mega infrastructure projects for the Panama Canal starting in 2026?

The Panama Canal Authority (ACP) has announced the development of four strategic infrastructure projects starting in 2026as part of its 2025–2035 Strategic Plan, with an estimated investment exceeding USD 8 billion.

These initiatives aim to ensure the country’s water and energy resilience, strengthen interoceanic logistics connectivity, and maintain the Panama Canal’s global competitiveness—creating significant opportunities for local and international companies interested in participating in their design, construction, financing, and operation.

Below is an executive summary of the main projects:

1. Río Indio Reservoir

This flagship project contemplates the construction of a dam on the Río Indio to create a new reservoir, with the objective of optimizing water resource management for the Canal, strengthening potable water supply for more than one million Panamanians, and generating direct benefits for communities within the area of influence.

The ACP completed the census of impacted communities on April 30, 2025, collecting key social, economic, and infrastructure information to design a fair and sustainable resettlement plan. Additional soil studies and community consultation processes are currently underway throughout 2025.

The tender process for final design and construction is expected by late 2026, with award in 2027, commencement of works the same year, and completion in 2031. The project includes a dam and an approximately 9 km water transfer tunnel to Gatun Lake, with an estimated investment between USD 1.5 and 1.6 billion..

2. Interoceanic Energy Corridor

This project involves the construction of an approximately 76 km pipeline to transport liquefied petroleum gas (propane, butane, and ethane) between terminals located on the Atlantic and Pacific coasts.

The infrastructure would have an estimated capacity of 2.5 million barrels per day, with the potential to generate up to 600 MW of energy, strengthening the country’s energy security. The ACP has initiated dialogues with interested companies and anticipates a prequalification process in 2025, a tender in the second quarter of 2026, and award in the fourth quarter of the same year.

3. Expansion of Port Terminals

The ACP plans the development of two new port terminals::

• Corozal Port (Pacific), integrated into a logistics hub with road and rail access.
• Telfers Port (Atlantic).

Together, these projects would add between 5 and 5.5 million TEUs of annual transshipment capacity. Estimated investment amounts to USD 2.6 billion, with tenders expected in 2026 and operations projected to begin in 2029.

4. Extension of the Logistics Corridor

This project seeks to improve logistics access to areas under ACP administration on the Pacific side, including the Río Indio basin, and to develop a specialized interoceanic “dry canal,”with projected demand of 760,000 TEUs annually.

The estimated investment is USD 1.782 billion, strengthening the competitiveness of terminals located along the western bank of the Canal.

How can SUCRE, ARIAS & REYES support your participation in these projects?

1. Public Procurement and Tenders

We support our clients throughout the entire tender process lifecycle:

• Legal strategy and structuring of participation (consortia, joint ventures, corporations, or participation accounts).
• Comprehensive analysis of bidding documents and technical and legal requirements.
• Document management and representation at clarification meetings and ACP proceedings.
• Administrative and judicial defense in claims, objections, or disputes.

2. Corporate Law and Project Structuring

• Incorporation of companies and obtaining operating permits.
• Advice on mergers, acquisitions, and strategic alliances.
• Corporate governance, banking, and document custody services.

3. Regulation, Permits, and Compliance

• Processing of governmental and municipal permits, Social Security (CSS), and regulatory authorities.
• Tax and customs planning, including importation of machinery and equipment.
• Environmental and regulatory law advice, essential for high-impact projects.

4. Labor Mobility and Human Resources

• Processing of SEM visas, immigration permits, and residency for foreign personnel.
• Comprehensive labor advice on hiring, regulatory compliance, and risk prevention.

5. Insurance and Bonds

• Specialized advice on bonds, performance guarantees, and insurance policies—essential in contracting with the State and the ACP.

6. Dispute Resolution

• Civil, commercial, and construction litigation.
• Representation in national and international arbitration, common in large-scale projects.

7. Legal Innovation and Document Management

• Implementation of LegalTech solutions such as WhatSign and SARdocuments for electronic signatures, contract automation, and efficient management of large volumes of documentation.

For more information on these projects or to learn how we can support your participation, please contact us at infosucre@sucre.net or visit www.sucre.net.