Panama to review $278 million cable car project after tender fails

Panama's ambitious $278 million cable car project has stalled after the only two interested consortia failed to submit bids in a troubled tender process. The Metro of Panama announced the project would undergo a comprehensive review, particularly concerning its financial aspects, risk allocation, and contractual viability.

The initiative, intended to connect the populous districts of Panama and San Miguelito, was designed to reduce travel times and provide a secure, efficient, and environmentally friendly transportation option. The project included plans for six stations along a 6.6-kilometer route.

Launched in October 2025 with a 23-year contract and a base price of $278.6 million, the tender faced difficulties. Despite several addendums to the bidding documents aimed at facilitating participation under a concession model, securing project financing proved insurmountable for the pre-qualified consortia. Both groups possessed proven technical experience.

The Metro of Panama stated that the review is necessary to understand international banking sector demands and to determine the most suitable path forward. The cable car project is a component of the National Government Plan for 2024-2029, highlighting its strategic importance for urban mobility.