Panama City, Panama —The law firm Alcogal advised Intervial Chile S.A. on Panama’s first Public-Private Partnership (PPP).
PPPs are long-term contracts signed between one or more public entities and the private sector to create, develop, improve, or maintain public infrastructure to deliver public services. The PPP regime in Panama was created by Law No. 93 of September 19, 2019, regulated by Executive Decree No. 840 of December 31, 2020, and modified by Executive Decree No. 119 of April 27, 2023.
The transaction was closed on April 29, 2024, and involves rehabilitating, improving, and maintaining the Eastern Pan-American Highway, a crucial project for the country’s infrastructure.
The contract was signed between the Panamanian government and Intervial Chile S.A., a contractor belonging to the Colombian Group ISA. This pioneering project under the PPP model aims to rehabilitate and improve 246 kilometers of the Eastern Pan-American Highway, the only road connection between the province of Panama and the country’s eastern region. The project will benefit approximately 145,000 people and has an estimated investment of 283 million dollars.
Alcogal advised Intervial Chile in awarding the public tender called by the Ministry of Public Works of Panama, providing their legal expertise to ensure compliance with all required regulations. The lawyers involved in this significant transaction were Alejandro Ferrer, Raúl Borrell, and Jaime Castillo, all the firm’s partners.
Alejandro Ferrer, partner at Alcogal, commented: “This contract marks a significant milestone in Panama’s history as the first PPP in the country. We are proud to have contributed to this initiative to improve road infrastructure and the quality of life for thousands of Panamanians.”
About Intervial Chile
Intervial Chile S.A., part of the ISA Group, is a leader in road infrastructure in Latin America. The company is dedicated to managing, operating, and maintaining roads, standing out for its commitment to safety, efficiency, and sustainability. With a solid track record in executing highly complex projects, Intervial Chile has significantly contributed to the region’s road infrastructure development, implementing innovative solutions that benefit both communities and users of their roads.
About Alcogal
Alcogal is one of the most important law firms in Panama. It is recognized for its excellence in legal advice in various practice areas, including public-private partnerships, corporate law, banking, finance, and dispute resolution. With a dedicated team of expert jurists, the firm focuses on providing timely and efficient advice across all industries.
