Historic Agreement for Puerto Quetzal Modernization: A Landmark Step in Guatemala’s Infrastructure Development and International Cooperation

BLP Legal - On May 22, 2025 an agreement was signed between the Government of Guatemala, through the Ministry of Defense, and the United States Army Corps of Engineers (USACE) for the modernization of Puerto Quetzal, marking a milestone in the development of key infrastructure for the country. This agreement not only strengthens international technical cooperation, but also opens the door to private investment under world-class standards. The first planning phase of the project will cost US$63 million, and the entire project is estimated at US$600 million. 

From a legal and operational perspective, the USACE will not be the direct executor of the works, but rather the supervisor and administrator of future contracts. This means that derivative projects will be awarded to private contractors through public bids via the System for Award Management (SAM.gov) portal, in accordance with U.S. Federal Acquisition Regulation (FAR) regulations.

The application of this model in Guatemala implies a double regulatory compliance: on the one hand, the rigorous U.S. regulations on federal procurement, and on the other, local legislation on permits, environmental regulations and labor conditions. This framework demands that interested companies comply with technical, legal and financial standards in order to compete successfully.

From a business standpoint, this alliance represents a unique opportunity for engineering, construction, design, and logistics firms-whether U.S., Guatemalan, or regional-who are looking to join as subcontractors or strategic partners. Port infrastructure and connectivity projects will require specialized expertise, state-of-the-art machinery and technological innovation that transcends borders.

But beyond its impact on the economy and trade, this agreement has a human dimension of great relevance. The modernization of Puerto Quetzal not only translates into improvements in the country’s competitiveness and reduced logistics costs, but also in the generation of formal employment and the promotion of sustainable development. At its core, this initiative is part of a broader effort to address the structural causes of irregular migration.

In a global context where public-private partnerships with an international vision are becoming increasingly important, agreements like this not only build physical infrastructure, but also strengthen institutions and social development. For those of us who work in infrastructure law, this is a moment to act with rigor and responsibility, aware of the impact our decisions have on the lives of millions of Guatemalans.

If the projects derived from this agreement are successfully implemented, Guatemala will have the opportunity to develop strategic works that have been postponed for years. It is a challenging path, but the transformative potential of this alliance is indisputable.

The contracting model through USACE is seen as the mechanism that Guatemala will use not only for Puerto Quetzal but also for the Port of Santo Tomás de Castilla in the Atlantic, the recovery of the railway system, the metro rail in Guatemala City and other mega infrastructure projects that are being prioritized.

blplegal.com