The Mulino government is cutting the fiscal deficit and defending investment grade, with 36% of the US$35.1bn 2027 budget going to public investment. The Canal Authority is preparing megaprojects including the Río Indio reservoir, new container terminals and an LPG pipeline.
What a Korean company can do now
Government · leader
President José Raúl Mulino (head of state and government, term 2024-07 to 2029-07)
Key national agenda
- Fiscal consolidation and keeping investment grade (Moody's Baa3, S&P BBB-)
- Canal water security (Río Indio reservoir) and logistics hub expansion
- Public infrastructure investment in health facilities and roads
- Financial reputation after removal from the EU tax blacklist
- Deciding the future of the Cobre Panamá mine (no reopening decision before end-2026)
- Process toward a new constitution
Government programmes
2027 General State BudgetUS$35.11bn
US$35.1bn total: US$22.27bn operations, US$12.84bn investment; US$6.36bn new borrowing planned. Passed third debate 49-18.
Río Indio reservoirAbout US$1.5bn total (estimate); US$82m allocated for 2027
Reservoir of about 4,600 ha to secure Canal water. Resettlement, compensation and design work runs in 2027, and a design-build tender is being prepared for a 2028 start.
New Atlantic and Pacific container terminal concessionsAbout US$2.6bn (expected investment)
Prequalification documents were published on 2026-01-30, with the operator due to be selected in Q4 2026. (single source)
Cross-isthmus LPG energy pipelineNot disclosed
A 76 km pipeline for propane, butane and ethane. Prequalification documents were published alongside the terminals. (single source)
Metro Line 3 (monorail)Over US$3.2bn (estimate)
Albrook to Ciudad del Futuro, built by the Hyundai E&C/POSCO E&C (HPH) consortium. Phase 1 construction is finished and the line is in testing. (single source)
Puerto Armuelles multimodal portNot disclosed
63% complete as of January 2026. A Japanese shipping group has sent a letter of intent for a vessel maintenance hub. (single source)
Business opportunities
PMO and engineering consulting for Canal Authority megaprojects
🔒 Why-now and buyers — analysis member ₩19,800/mo
Metro Line 3 operations and maintenance cooperation
🔒 Why-now and buyers — analysis member ₩19,800/mo
Open this week
Public finance and tax administration digital solutions
Multilateral loans are funding financial management and tax infrastructure projects.
MEF, Dirección General de Ingresos
Port digitalisation and decarbonisation cooperation
🔒 Why-now and buyers — analysis member ₩19,800/mo
Free members get a human-reviewed summary by email for up to 3 countries a month (sent within 24h). BUILD members get them all.
Korean wins
- Daegu Transportation Corporation — Maintenance of Panama Metro Line 3 trains (26 sets) and turnouts (28 sets) 2025 · About KRW 5bn
Korean support schemes
- KOTRA Panama Trade Office · KOTRA — Market intelligence, buyer matching and branch-office services for Panama and the Central American logistics market.
- SBC Export Voucher · Korea SMEs and Startups Agency — Vouchers for export marketing costs such as trade fairs, certification and translation.
- ICAK overseas construction market development support · International Contractors Association of Korea — Funding for feasibility studies and market development for infrastructure bids.
Official notices
Presidency of the Republic of Panama
- 2026-10-30 National Assembly passed the US$35.11bn 2027 budget in third debate
- 2026-10-21 Cabinet approved US$186.8m of adjustments to the 2027 budget after Assembly hearings
- 2026-10-09 Removed from the EU list of non-cooperative tax jurisdictions after the economic substance law
- 2026-07-29 Cabinet approved the 2027 budget bill and sent it to the Assembly
Disaster · conflict · epidemic
Watch 2026-11-07
M7.7 earthquake (9 Oct): 27 injured, damage to homes, hospitals and roads
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Earth & space
Credit rating · FX
S&P BBB- (stable) / Moody's Baa3 (negative) / Fitch BB+ · K-SURE Unconfirmed · PAB 0.0%
Sanctions
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No country-wide UN, US, EU, UK or Korean sanctions programme applies; Panama was also removed from the EU tax blacklist on 2026-10-09.
