Spotlight: The top CentAm, Caribbean infra projects

Infrastructure plans in Central America and the Caribbean are moving forward in those countries that have shown strong commitments to projects to lift their economies out of the doldrums caused by the coronavirus pandemic. 

Based on proposals for projects in the planning, tendering or construction stage, BNamericas has identified that the biggest opportunities in the subregions are in the Dominican Republic, Panama and El Salvador.

According to the BNamericas Project Database, Panama is building 21 major projects and readying another 24. The Dominican Republic is constructing seven and preparing another six and El Salvador is building two and readying at least five. 

While there are many more infrastructure initiatives in the region, a lot involve very small public projects or works that have been awaiting the green light for years. 

For example, Costa Rica has had a US$1.5bn passenger rail project awaiting approval from the legislature since 2020. The project could suffer yet more delays now that President Carlos Alvarado is to be replaced by Rodrigo Chaves, who won the election in April. 

Guatemala, meanwhile, has a public-private partnership (PPP) agency that is seeking to prioritize a portfolio of six works totaling 12bn quetzales (US$1.5bn), in addition to adding and reviewing more initiatives. 

However, all PPPs in the country must be approved by the legislature even after being awarded, an obstacle that has resulted in just one partnership getting the go-ahead during the administration of Alejandro Giammattei. 

Panama

Among the country’s biggest projects is the ongoing construction of the US$2.5bn metro line No. 3 beneath the Panama Canal. The work will require a 5.3km tunnel that will be built by the Consorcio HPH joint venture, which was also awarded construction of the 24.5km metro line. 

Authorities also confirmed this year that the government intends to resume construction of the US$1.5bn fourth bridge over the Panama Canal in 2022, after postponing the project in 2020 due to lack of funding and to make changes. 

And in March, the Panama Canal authority’s deputy administrator Ilya Espino de Marotta told BNamericas that a new tender for a US$2bn water program with infrastructure to secure supply for half of Panama City for the next 50 years is in the works. The tender could be ready for release in two or three years, she said. 

Dominican Republic

Luis Abinader, who was sworn in as Dominican Republic president in April 2020, has pushed forward a transport agenda that involves the Santo Domingo metro line No. 2C expansion, and two new rail projects under planning – the Santo Domingo metropolitan train and the Santiago monorail. 

The country also has the support of development banks for its ambitious plans.

Executives at IDB in the Dominican Republic’s office told BNamericas at the end of May that the bank expects to have up to 26 operations approved this year. Among the approved programs is the US$100mn rehabilitation and expansion of Manzanillo port, for which the government is looking to launch a tender for construction and supervision contracts in August.

And Central American Bank for Economic Integration (Cabei) director Dante Mossi told BNamericas in April that the bank is seeking to finance six signature projects of President Abinader. Among these is the US$3bn Pedernales tourism hub, nearly 300km from capital Santo Domingo on the border with Haiti.

El Salvador

Under President Nayib Bukele, El Salvador has put in motion plans to construct major works such as a new airport, rail lines and a city focused on promoting the use of cryptocurrencies, known as Bitcoin City. 

The public works and transport ministry (MOPT) and Cabei have separate feasibility studies underway for advancing plans for the interdepartmental rail transport network. The studies could focus on more than one project, including Bukele’s Pacific rail signature project, or coastal train project, between the northwestern Acajutla port and the southern La Unión port, crossing capital San Salvador. 

Also, renowned Mexican architect Fernando Romero, who the president has entrusted to design his flagship Pacific airport and Bitcoin City projects, submitted in May proposals for both works. 

Most recently, authorities announced tenders for the US$300mn Los Chorros widening of the Pan-American highway, which involves the construction of a complex 1km viaduct.