Panama Waste Management
San Miguelito Municipality: A Critical Opportunity for New Solutions
San Miguelito, a densely populated district within the Panama Metropolitan Area, faces a severe and long-standing waste management crisis. The current concessionaire, which has held an exclusive 25-year contract, has been widely criticized for underperforming and reportedly only fulfilling 51% of its collection plan. This deficiency has led to a “large sanitation and trash issue that significantly impacts public health and the environment. This situation was exacerbated by the concessionaire’s threat to suspend services at public schools. The Mayor of San Miguelito has explicitly stated her administration is committed to addressing this issue head-on. The current contract with the company is set to expire in January 2026, creating an immediate and pressing opportunity. The Municipality is actively preparing a new tender for the waste collection concession, covering its entire 60 km² area. This tender represents a significant opening for U.S. companies to bring modern, efficient, and sustainable waste management solutions to the area. This could include potential for enhanced collection, recycling programs, and waste-to-energy programs. Initiatives would deliver a tangible “success story” for the right American firm and the community.
Panama Municipality: Evolving Towards Integrated and Circular Waste Management
While sharing some of the broader challenges of urban waste management, the Panama Municipality, under Mayor Mizrachi, is pursuing a more integrated and forward-thinking strategy for waste. Panama City, which accounts for a significant portion of the country’s population, generates an estimated 1.2 kg of waste per person per day. Historically, the city has struggled with inadequate infrastructure, leading to high rates of improperly disposed of all types of waste that end up in rivers and the ocean. However, there is growing momentum towards a circular economy, evidenced by legislative actions such as the 2018 plastic bag ban and Law 276 of 2021, which established regulations for integrated solid waste management. The municipality, with support from initiatives like the Multi-Partner Trust Fund, is focusing on projects like the “Sustainable Transformation of Municipal Markets,” which aims to reduce landfill waste by 10% through advanced organic waste management and composting. These efforts indicate a market that is increasingly open to comprehensive waste solutions that go beyond basic collection, embraces advanced technologies and methodologies for recycling, waste reduction, and resource recovery.
The U.S. Commercial Service can assist you in identifying opportunities and local partners in the Republic of Panama. To learn more, please contact Senior Commercial Specialist Jeane Zuniga at Jeane.Zuniga@trade.gov.