The Ministry of Public Works (Panama) has confirmed that major road expansion projects on two critical arteries will include new, paid express lanes. Minister José Luis Andrade announced the plan this week, detailing a $382 million investment aimed at alleviating chronic congestion in the metropolitan area and western Panama.
These projects will widen the Centenario road from four to six lanes and expand the Arraiján–La Chorrera highway from six to eight lanes. The newly constructed lanes on both corridors will operate as tolled express lanes, similar to systems used in the United States. The projects will be developed under a Public-Private Partnership (PPP) model, with a 25-year concession for construction and maintenance.
“The additional lanes will be fast lanes, similar to those used in the United States, and will have a toll collection system,” said Public Works Minister José Luis Andrade during a television interview. [Translated from Spanish]
The tender process for the massive undertaking is now scheduled for March 2026. This marks a slight adjustment from an initial plan to launch bids in December of this year. Andrade noted that PPP tender processes typically take four to five months from announcement to bid opening, with the goal of starting physical construction next year.
Project Scope and Financial Structure
Spanning 82 kilometers of roadway, the initiative is not just about adding pavement. It encompasses the rehabilitation, expansion, and long-term upkeep of vital infrastructure. A total of 38.5 kilometers will consist of brand-new lanes added to the Centenario road and the Panama–Chorrera highway.
The contract also includes maintaining the Roberto F. Chiari road and the La Pesa viaduct. The state will grant a 25-year concession to a private entity. This agreement features a 13-month pre-construction phase for studies and permits, followed by 30 months of active construction. The concessionaire will then handle 21 years of maintenance operations.
Minister Andrade clarified the funding mechanism. He explained that within these types of PPP projects, tolling primarily applies to the new, faster-use lanes. This model helps finance the substantial upfront investment required for the expansions.
Feasibility and Traffic Impact Studies Pending
While the government has confirmed the toll lane strategy, a report from the International Finance Corporation (IFC), a World Bank affiliate, indicates that final implementation depends on detailed feasibility studies. These studies must analyze the specific impact user fees would have on traffic patterns and the overall financial return for the PPP contractor.
The IFC’s analysis suggests a careful examination is needed before setting final toll structures. The government, however, through the Ministry of Public Works (Panama), has moved forward with the core plan. Officials are confident the paid express lanes will provide a valuable option for drivers.
“In this type of APP project, the toll is applied mainly to the new fast-use lanes,” Andrade stated, providing further context for the decision. [Translated from Spanish]
The targeted corridors serve as essential links between Panama City and the rapidly growing western regions. Traffic congestion has become a significant daily challenge for commuters and commerce. The new lanes aim to offer a reliable, faster alternative for those willing to pay, while also increasing overall road capacity for all users.
Addressing Regional Growth and Congestion
This massive investment directly responds to years of sustained vehicular growth. The ministry states the works seek to modernize road infrastructure, improve connectivity, and offer more efficient mobility alternatives. The expansions on the Centennial Bridge (Panama) corridor and the main western highway are considered strategic priorities.
The announcement follows other infrastructure moves in the region, including recent work on the autopista highway panama network. For the minister overseeing these developments, luis andrade, the goal is a systemic upgrade to Panama’s transportation framework.
Project managers now focus on the final preparations for the 2026 tender. The coming months will see refined engineering plans and the completion of critical feasibility assessments. Success for the government means not just breaking ground, but delivering a project that tangibly improves travel times and supports continued economic development in Panama Oeste.