Panama Reviews Chinese Fourth Bridge Project
Panama is reassessing Chinese-built strategic infrastructure, focusing on the delayed and over-budget Fourth Bridge over the Panama Canal.
An explosion beneath Panama's Bridge of the Americas in April killed one person, injured two, and forced a temporary closure of the vital route. The incident revived debate over the long-delayed Fourth Bridge over the Panama Canal, a project awarded to a Chinese consortium in 2018.
Panamanian lawmaker Jhonathan Vega said the bridge was announced nine years ago and was supposed to be delivered in 2023. He stated it now carries cost overruns of more than $1.84 billion, describing the April explosion as proof of the system's fragility while the project remains unfinished.
The Fourth Bridge Delays
The Fourth Bridge over the Panama Canal is now a focal point in a regional debate over Chinese investment. According to Panama’s Ministry of Public Works, the project is nearly five years behind schedule and had reached only 37 percent completion this year. The government sanctioned the consortium in 2020 over delays during the design phase.
Costs have risen sharply from an initial estimate. The project's financial status is detailed below.
| Project Metric | Figure |
|---|---|
| Initial Cost Estimate | $1.42 billion |
| Current Total Value | Over $2.6 billion |
| Cost Overrun Cited by Lawmaker | More than $1.84 billion |
Public Works Minister José Luis Andrade said traffic studies showed the initial design would have created congestion upon opening. "An investment of this magnitude cannot be delivered with a traffic jam," Andrade said. In April, Labor Minister Jackeline Muñoz also announced sanctions after authorities identified irregularities involving working conditions and immigration requirements.
Strategic Concerns and Regional Trend
The profile of the Chinese companies involved has added to concerns. In 2020, the U.S. Department of War included China Communications Construction Company on a list of firms considered linked to China’s People’s Liberation Army. Guillermo Holzmann, a political analyst at the University of Valparaíso in Chile, told Diálogo that Chinese interests are tied to maintaining control over global supply chains, within which the Panama Canal is enormously important.
"This pressure can slow projects, suspend them, or alter their conditions in order to influence government decisions," Holzmann said. The Panamanian government's review extends to other projects. In January, authorities revoked the concession for the Colón container port held by Chinese companies Shanghai Gorgeous Investment Development and Landbridge Group, citing contractual violations.
Another project under scrutiny is the $900 million Gas to Power Panamá energy project, developed by Sinolam Smarter Energy LNG Power, a company identified as a subsidiary of Shanghai Gorgeous Investment Development. The project has faced years of delays and regulatory disputes. This reassessment reflects a regional trend where Latin American governments are reexamining Chinese infrastructure projects.
In Bolivia, the El Sillar highway project built by Chinese state-owned Sinohydro has faced allegations of construction defects and contractual breaches. In Ecuador, the state electricity company CELEC declared a $47 million tender void shortly before it was expected to be awarded to a consortium that included Chinese firms, citing public interest and transparency.
Holzmann said Latin American countries are learning to respond by seeking to preserve their sovereignty. However, he added that many still lack a clear definition of national interests, which are often confused with short-term social welfare or economic growth needs. The debate now evaluates how investments affect economic security, national security, and the resilience of critical assets like the Panama Canal, through which about 5 percent of global maritime trade passes.
