What Happened
The Social Security Fund (CSS) administratively terminated its $9.2 million contract with the Alca-Ger consortium for the reactivation of the Boquete polyclinic after the consortium failed to deliver the project by the contractual deadline of December 22, 2025. The consortium — made up of Alca Holding International, INC. and Ingeniería GER, SA — filed an appeal with the Administrative Court of Public Procurement (TACP) on March 19, 2026. The appeal was submitted through the forensic firm Morales & Associates.
Immediate legal effect
Because the consortium appealed, the CSS resolution to terminate the contract is suspended while the TACP reviews the case. In addition to terminating the contract, the CSS had imposed a four-year ban on the consortium from participating in the institution’s tenders. That administrative sanction is now subject to the court’s decision.
Background
The contract with Alca-Ger was endorsed by the Comptroller General on June 21, 2023. Construction of the new Boquete polyclinic originally began during the administration of Guillermo Sáez Llorens, but work was halted during the government of Juan Carlos Varela. The project is one of several health infrastructure initiatives that were delayed during past administrations and remains pending.
This would mark the second time a contractor has failed to complete the Boquete facility. The first instance involved Riva, SA, whose contract was cancelled for non-compliance on a project that had a completion date in 2014.
What the appeal asks
In its appeal to the TACP, the consortium requested that the court declare the CSS resolution null and void on the grounds of an alleged violation of due process, and that the resolution be rendered ineffective so that the allegedly violated right be restored. Until the TACP issues a ruling, the termination remains suspended.
What this means
The legal pause means construction will not resume under a new contractor immediately, and the local community must wait for the court’s decision before the CSS can proceed with enforcement or re-tendering. The stalled project underscores continuing challenges in delivering health infrastructure in Boquete and highlights the role of administrative and judicial review in public procurement disputes in Panama.
The outcome of the TACP ruling will determine whether the CSS can finalize the termination and move forward with other procurement steps, or whether the contract with Alca-Ger will be reinstated and the consortium allowed to complete the work.