Panama’s Ministry of Public Works received two formal bids on Wednesday for a major highway expansion project west of Panama City. The competing proposals aim to secure a contract valued at a quarter-billion dollars to widen a critical 20-kilometer stretch of the Pan-American Highway.
This project, officially named the “Corredor de las Playas” expansion, targets the heavily congested route connecting Panama City to popular western beach communities. The Ministry of Public Works (Panama) opened the public tender with a reference price of $250 million. Officials declared the work a public interest priority earlier this year to improve safety and traffic flow.
“The project scope includes approximately 20 kilometers of road,” a ministry statement confirmed. [Translated from Spanish] The work will widen the corridor from four to six lanes between El Espino in La Chorrera and Sajalices in Chame.
Two consortia submitted offers before the deadline. Constructora MECO, S.A. presented the lower bid at $228.4 million. The competing entity, Consorcio I & C Panamá, a joint venture between Constructora Urbana, S.A. (CUSA) and ININCO, S.A., submitted a proposal priced at $265.3 million.
The ministry must now evaluate both bids on technical and financial merits before awarding the contract. This process follows Panama’s legal framework for public procurement.
Project Scope and Timeline for Beach Corridor
Beyond simply adding lanes, the ambitious project includes a significant new bypass. Dubbed the “Campana Variant,” this component features a viaduct that will connect to a new interchange at the Sajalices Terminus. Engineers designed it to streamline traffic moving from the interior provinces toward the capital.
Planned construction activities are extensive. Crews will place high-durability modified asphalt and relocate public utility lines currently in the expansion zone. The project also requires extending and adapting drainage structures while widening existing bridges for increased capacity and safety. Acquiring the necessary road easements for the broader infrastructure forms another key task.
If the process stays on schedule, the ministry expects to issue a formal notice to proceed by the first half of 2026. Once shovels hit the ground, officials estimate a construction timeline of roughly two and a half years.
“Following the completion of the technical and economic evaluation, the project will be awarded in accordance with the guidelines of the Public Procurement Law,” the MOP emphasized. [Translated from Spanish]
This expansion represents a direct response to years of worsening congestion. The corridor serves as the primary artery on the Pan-American Highway for residents, tourists, and commercial freight traveling to and from Panama’s western provinces. Weekend and holiday traffic regularly grinds to a standstill, prompting calls for a permanent solution.
The winning contractor will face the complex challenge of maintaining traffic flow during construction. Thousands of vehicles use this route daily. Project managers will need to implement meticulous phased construction plans and detours to minimize disruption for commuters and the local economy.
Final contract approval and signing will trigger the official countdown to groundbreaking. All eyes now turn to the ministry’s evaluation committee as it begins scrutinizing the two multimillion-dollar proposals.

