President José Raúl Mulino announced Tuesday that Panama housing reconstruction efforts will deliver more than 2,700 homes by March 2027, following the magnitude 7.5 earthquake that struck four provinces on October 9. The government will modify a trust fund at the National Bank of Panama to accelerate contracting and construction in declared contingency zones.
The announcement came after a Cabinet Council session where officials approved Resolution No. 147-26, amending the original emergency decree from October 10. The measure authorizes up to $100 million from the Ministry of Economy and Finance for special contracting procedures tied to the disaster response.
Panama Housing Reconstruction Trust Fund Changes
The modified trust structure will finance contractor capital contributions and payments for works, goods, and services, with oversight from the Comptroller General’s Office. Once the contingency period ends and obligations are settled, any remaining funds will return to the National Treasury.
To prevent administrative bottlenecks, the Comptroller’s Office will hire additional professional teams to decentralize file reviews and expedite approvals in affected areas. The resources draw from the State of Emergency budget line, with fiscal validity extending through 2026 and 2027.
Isla Cañas Relocation and Temporary Housing Plans
Authorities confirmed plans to relocate residents of Isla Cañas to the mainland, citing safety concerns for the island community after the seismic event. The government will install temporary structures on land adjacent to destroyed or severely damaged homes, providing provisional shelter while permanent construction advances.
The Ministry of Labor and Labor Development will coordinate a youth workforce initiative, integrating young workers into building projects to gain first job experience in affected communities. This component aims to combine reconstruction with local economic recovery.
Presidential Warning on Project Delays
Mulino delivered a direct message to officials involved in the reconstruction effort, demanding full commitment to the accelerated timeline.
“I will not accept delays; simply put, whoever is not willing to give 100 percent with transparency in this great effort should step aside” [Translated from Spanish]
The president’s warning signals an emphasis on execution speed amid the emergency response. The government projects completion of all housing units within approximately 17 months, a timeline that requires streamlined procurement and continuous field supervision across the four affected provinces.
Funding disbursements will occur in stages as contractors meet project milestones, with the Comptroller’s refrendo process serving as the control mechanism. The trust fund modification represents the central financial tool for delivering permanent housing solutions to families displaced by the earthquake.