Member since 2016
Infrastructure projects are particularly vulnerable to political favours, corruption, and mismanagement. Given the pivotal role of infrastructure in the economy, it’s essential to monitor public spending and ensure that such projects meet the country’s needs. Working with CoST, we will enhance Panama’s efforts to increase transparency in public procurement, creating the conditions for sustainable economic growth by reducing the costs and risks of doing business and strengthening collaboration between government, the private sector, and civil society.
Angélica I. Maytín Justiniani, Former Director–General of Panama’s National Authority of Transparency and Access to Information
Prior to CoST: Public infrastructure in context
Though there has been an influx of infrastructure investment in Panama, the country still faces challenges in infrastructure delivery, including cost overruns and incomplete works. As with many other countries, these issues can be connected to inefficiencies, mismanagement, and corruption within the sector. Inefficient government bureaucracy is also cited as a problematic factor for conducting business in Panama.
Panama has fallen three places on Transparency International’s Corruption Perception Index since 2012 and was ranked111th in 2020. The World Justice Project placed Panama 45th out of 113 countries in itsOpen Government Index.
Panama Canal Infrastructure
All processes surrounding public infrastructure procurement are regulated by Law 22 of 2006, which aims to streamline procurement processes and improve levels of transparency. However, this law falls short of providing a legal basis for implementing the CoST Infrastructure Data Standard (CoST IDS). Improving governance mechanisms relating to infrastructure transparency, such as Law 22, is necessary to build trust in public procurement and create a more encouraging business environment.
CoST Panama: How it all began
Panama was among the delegates that attended CoST’s 2015 regional workshop in Latin America. The Panamanian participants worked together to explore CoST principles. They developed an action plan for infrastructure transparency, which engaged key actors from across government, industry, and civil society.
Participants continued to drive forward the agenda for infrastructure transparency at the national level after the workshop. The CoST International Secretariat worked closely with key stakeholders on the ground, and in late 2016, Panama applied for membership to CoST.
Panama’s membership application was accepted later that year and announced at the 17th International Anti-Corruption Conference, illustrating the country’s commitment to developing trust in public infrastructure. Angélica I. Maytín Justiniani, Director–General of ANTAI, announced as part of a high-level panel discussion on the impact of transparency in public infrastructure across Latin America. Panama was joined by leading experts and practitioners in the field, in addition to CoST colleagues from Afghanistan, El Salvador, Guatemala, Honduras, Malawi, Ukraine, and the CoST Board.
CoST Panama was launched in August 2017, and its scoping study was published that year, which assessed 12 public infrastructure projects. The scoping study found that on average, only 17 data points on infrastructure projects were proactively released to the public – less than half of the amount required by the CoST IDS. Out of 26 reactive data publication indicators, only 11 were published. The projects evaluated were from the sectors of water and sanitation, recreation, transport, education, and health.
Multi-Stakeholder Working
CoST brings together stakeholder groups with different perspectives and backgrounds from across government, the private sector, and civil society. Through each member’s Multi-Stakeholder Group, these entities can guide the delivery of CoST and pursue infrastructure transparency and accountability within a neutral forum.
The MSG is composed of representatives from five public institutions, three representatives of the private sector, three civil society organisations, and two observers.
Publication of Data
The data publication process ensures that data about the purpose, scope, costs and execution of infrastructure projects is open and accessible to the public, and that it is data is published in a timely manner.
Panama has two e-platforms for data disclosure. “PanamaCompra” provides a platform on which to publish information on projects at the bidding and procurement stages, totalling 11 indicators of the CoST IDS. “PanamaenObras“, which was developed by CoST Panama, requires the full 40 indicators of the CoST IDS to be disclosed, ensuring that more information on projects will be available across the whole project cycle. The next version of “PanamaCompra,” which is currently being developed, will also have information from the entire project cycle and will be linked to “PanamaenObras.”
Having a CoST champion from ANTAI, the national entity in charge of transparency and access to information, has greatly enhanced levels of data publication in Panama. ANTAI has coordinated with procuring entities to ensure information is published on PanamaenObras, which is not yet legislated for by Panama’s procurement laws.
Training
To increase understanding and engagement in disclosure, CoST Panama has conducted training sessions with the Institute of Aqueducts and Sewers National (IDAAN) and the Municipality of Panama. Representatives from these procuring entities have been trained on publishing information on PanamaenObras in line with the CoST IDS. In addition, they have been trained on the disclosure and assurance processes and the importance of social accountability.
Legal mandate for data publication
In September 2020, Panama’s Public Procurement Law was amended to include an article on Open Data in Public Procurement. This means procuring entities are now obliged to publish all data related to public contracting on the “PanamaenObras” and “PanamaCompra” systems, in an open data format. The data published on “PanamaenObras” is in line with CoST and Open Contracting Partnership’s flagship standard, Open Contracting for Infrastructure Data Standard (OC4IDS).
Social accountability
CoST works with social accountability stakeholders such as the media and civil society to promote the findings from its assurance process so that they can then put key issues into the public domain. In this way, civil society, the media, and citizens can all be aware of issues and hold decision-makers to account.
CoST Panama opened the School of Social Accountability, which trains citizens to analyse the social performance of infrastructure projects and create social accountability reports. Additionally, the CoST Panama MSG holds activities such as training sessions, capacity building events, and awareness sessions for community leaders, students, and citizens to create capacity and promote the demand for data from procuring entities.
CoST Panama has successfully implemented three Social Accountability studies covering a total of eight public infrastructure projects, as well as a state-contracted infrastructure disclosure platform, all developed within the framework of the Master’s Programme in Open Government and Public Integrity at the University of Panama.
The Social Accountability reports will be presented to the relevant government institutions during 2025, to generate evidence-based recommendations to support the continuous improvement of infrastructure planning, execution, and transparency.
Infrastructure Transparency Index
In 2023, CoST Panama conducted the country’s first Infrastructure Transparency Index (ITI). This national-level assessment evaluated public investment entities and projects based on four key pillars: the enabling environment, institutional capacity and processes, citizen participation, and information disclosure related to public works projects. The ITI has been applied in countries across Latin America, Europe, Asia, and Africa. Its purpose is to generate high-quality, comparative data that promotes greater transparency and drives improvements in the delivery of public infrastructure.
The results of this internationally recognized evaluation—based on global best practices—were presented during an event organized by CoST Panama in collaboration with the General Directorate of Public Procurement (DGCP) and the National Authority for Transparency and Access to Information (ANTAI). The event also included a set of policy recommendations aimed at strengthening public procurement and enhancing the planning and construction stages of infrastructure development. The British Embassy in Panama funded this landmark study.
The authorities who participated in the event were able to identify both strengths and areas for improvement. For example, Panama scored above the international average in areas related to the enabling environment and information publication, but below average in aspects tied to institutional capacity, internal processes, and citizen engagement mechanisms.
With an overall score of 48 points out of 100, the Index highlights a range of opportunities for improvement. These are detailed in the final report, which offers a roadmap for enhancing transparency, accountability, and citizen participation in public infrastructure delivery across the country.
Open Contracting and Transparency in Public Infrastructure
In 2019 CoST Panama received US $400,000 from the Open Government Partnership (OGP) Multi-Donor Trust Fund and is used this to implement the ”Open Contracting and Transparency in Public Infrastructure” project, including activities to strengthen the “Panamá en Obras” platform, promote the adoption of the OC4IDS, build capacity to use published infrastructure data and encourage social accountability across project implementation. The OGP Multi-Donor Trust Fund is a joint initiative between OGP and the World Bank, designed to support activities that help to overcome implementation gaps in OGP action plans.
Next steps for CoST Panama
To regulate the CoST Panama MSG, the National Secretariat is currently working on the possible establishment of an MoU with a civil society organization to host the national secretariat. CoST Panama is also working on inviting new stakeholders to the MSG and an institutional platform to publish the activities of the programme, and the possibility of an interactive Dashboard for the data available in the disclosure portal PanamaenObras.
During 2025, CoST Panama had planned to develop the First Assurance Report of 5 Infrastructure Projects.
Get in touch
Aída Isabel Martínez Mórtola – Cost Panama Country Manager
panama@infrastructuretransparency.org
Twitter: @CoSTPanama