The government of Panama has an official fleet of 13,000 vehicles, and according to Law No. 295, by 2025, 10% of them must be electrified, amounting to 1,300 zero-emission units.
With only six months left until next year, this goal is delayed.
One of the reasons is the Framework Agreement, designed to facilitate the acquisition of these cars by public institutions, which is facing significant obstacles.
The main barriers include the limited number of brands offering electric vehicles.
As a result, only the automaker KIA is listed in the agreement, with its SOUL EV model designated to electrify official fleets.
It is worth noting that the agreement was relaunched in 2022, when the availability of zero-emission models was more limited.
“The initial offer of electric vehicles was not abundant, leading the Directorate General of Public Procurement to reduce the number of categories,” comments Alexander Fragueiro, External Energy Consultant for Panama, to Mobility Portal Latinoamérica.
“Today, the market has grown, but the restrictions imposed by the agreement limit the participation of new brands,” he adds.
For 2024, the goal is to relaunch the Framework Agreement with broader participation from national suppliers.
The aim is for more companies to offer their vehicles, thereby increasing transparency and facilitating the renewal of official fleets.
Additionally, the consultant suggests that a public consultation with all industry stakeholders could identify barriers and facilitate greater participation.
He also proposes reviewing and adjusting the technical and operational requirements to align them with the current market reality.
Institutions interested in electrifying their fleets, such as the Panama Canal Authority and the Technological University of Panama, are already progressing in acquiring electric vehicles because they are not solely reliant on the Framework Agreement, unlike other parts of the government.
However, the success of the Framework Agreement depends on its ability to adapt and allow for greater competition among suppliers.
The governmental transition that began on 1 July also plays a crucial role in this process.
It is expected that the new leaders will prioritise energy transition projects and continue the work carried out by previous administrations.
In this regard, Fragueiro explains, “It is an issue that must be genuinely addressed with the Directorate of Public Procurement as soon as possible, so as to improve the 2025 goal concerning the incorporation of vehicles for official fleets.”
The Panamanian Market Share Supports Fleet Electrification
Panama currently has 27 brands and 55 zero-emission models.
Here are some of the options that could be added to the Framework Agreement:
- BYD offers a diverse range of electric models, such as the BYD D1 hatchback, the BYD Seagull, the BYD Truck, the BYD Song Plus SUV, the BYD T3, the BYD Han sedan, the BYD Seal, and the BYD Yuan EV360 SUV.
- Changan offers the E-Star electric hatchback, and the Rivian brand includes the Rivian R1S SUV and the Rivian Pickup.
- Skywell presents the ET5 SUV, while DongFeng offers a wide variety of models, such as the DongFeng Panel van, the DongFeng Pickup, the DongFeng Friday, and the DongFeng Forthing S60 sedan.
- Farizon complements the range with its electric truck and the Yuan Cheng van.
The Challenges for the New Government
Last May, the Panamanians elected the nation’s new president, with José Raúl Mulino emerging victorious.
He will have to continue the work that eMobility has been carrying out in the country so far.
In addition to reviewing the Framework Agreement, another major challenge facing this new government is ensuring compliance with the stipulations of the Communication Strategy for the Energy Transition.
It is important to remember that this strategy has six specific objectives.
The first is to introduce the concepts associated with the transition and the various sustainable energy technologies.
The second is to strengthen Panama’s capacity to address the impacts of climate change through the opportunities generated by the Energy Transition Agenda.
The third is to create differentiated mechanisms and spaces for interaction with key stakeholders to disseminate the actions involved in the Agenda.
The fourth is to establish a favourable environment in networks and mass media regarding responsible consumption, savings, efficiency, renewable energies, electromobility, and green hydrogen.
The fifth is to guide, coordinate, and monitor the implementation of the communication actions of the Agenda through specific committees.
The sixth is to ensure that in the execution of this strategy, the involved government actors and the relevant private sector adopt informative and dissemination measures, so that the public receives a consistent message.
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