The Panama City Mayor’s Office confirmed this week that it will not implement paid parking within the popular Cinta Costera coastal roadway. Officials are instead moving forward with a new digital payment system for a separate, adjacent lot in the El Chorrillo district. The clarification came after the Municipal Council approved a dynamic pricing plan for the specific site.
City spokesperson Alejandro Cohen directly addressed public concerns about the scope of the project. He stated the municipal agreement only covers the use of a defined plot of land near Barraza Street, which faces the Cinta Costera 3 section.
“We are not going to charge for parking in any part of the Cinta Costera. What is being discussed is the use of the land located in El Chorrillo. The municipal agreement makes the rates clear, which was the only thing discussed,”
said Alejandro Cohen. [Translated from Spanish]
The council’s approval, granted during a session last Tuesday, authorizes the city to manage and collect fees for the designated lot. Revenue will not go into the city’s general fund. It is earmarked specifically for maintenance and infrastructure improvements in the immediate area.
Dynamic Pricing Model to Manage Demand
César Kiamco, the Municipal Council representative for Bella Vista, detailed the proposed fee structure. He explained the plan implements a dynamic pricing model where costs fluctuate based on demand. Rates would be higher during peak hours and lower during periods of low use.
Kiamco added that the city could also adjust pricing for special events. The system will include penalties for vehicles left parked for extended periods. This approach aims to optimize space turnover and ensure availability for more users throughout the day.
“One of the main objectives is that the generated income does not go into the common coffers, but is destined directly for the maintenance and improvements of the infrastructure in the area,”
Kiamco stated. [Translated from Spanish] This dedicated funding stream is a key component of the project’s approval by the Municipal Council (Panama City).
City to Develop Digital Management App
In a notable operational decision, the Mayor’s Office indicated it does not plan to contract a private company to run the paid parking lot. Instead, the municipality will develop its own digital application to manage the payment process efficiently. This move suggests the city wants to retain direct control over operations and revenue.
The focus on a specific lot, not the broader cinta costera beltway, appears designed to address chronic congestion in a high-traffic zone. The area serves as a key access point for the waterfront park and causeway system. Officials hope managed parking will alleviate illegal parking and improve traffic flow.
No official start date for the new paid parking system has been announced. The city must first complete development and testing of its proprietary management application. Further announcements are expected once the digital platform is ready for public use.