National Assembly: Technical committee to boost construction sector moves forward with two proposals

Panama's National Assembly is moving forward with significant reforms aimed at revitalizing the construction sector. A technical committee has put forth two concrete proposals focused on amending the Public Procurement Law, a move intended to unblock stalled projects and inject new life into a vital economic engine.

The first proposal, presented by Gustavo Herrera of the National Union of Workers in the Construction Industry and Similar Trades (Untraics), seeks to adjust current regulations. Herrera argued that contractors should not be penalized for project delays caused by state inefficiency. "It is not fair that the worker and the company bear the costs of bureaucratic inefficiency," Herrera stated, also calling for faster approval of project additions and measures to prevent administrative silence from impeding progress.

“

It is not fair that the worker and the company bear the costs of bureaucratic inefficiency.

Representing the private sector, Elisa Suárez of the National Council of Private Enterprise (Conep) highlighted the construction industry's role as a "drag sector" that stimulates ten other economic areas. Her primary concern is ensuring timely payments from the state to alleviate liquidity shortages faced by companies. "We have projects paralyzed not for lack of will, but for lack of cash flow," she warned.

To address the cash flow issue, the private sector suggests establishing a trust fund to guarantee prompt disbursements. They also propose more flexible guarantees, allowing capital to be reinvested directly into ongoing projects and job creation. These initiatives underscore a shared goal between labor and business to overcome the bureaucratic hurdles and financial uncertainties plaguing the sector.

“

We have projects paralyzed not for lack of will, but for lack of cash flow.