President Varela continues to surround himself by smart people.

Panama’s President  Juan Carlos Varela has appointed Ramón Arosemena as public works minister in his upcoming administration, local media reported.

Arosemena will take office on July 1 with a mandate to review public work contracts signed under President Ricardo Martinelli’s administration.

Arosemena leads US-based American Engineering Group, and has a vast experience in bridge and highway construction in the US, according to local daily Crítica.

According to Varela’s government plan, main projects in the pipeline include the building of Panama City’s metro line 2, other public transport projects to interconnect metro lines and 500km of new paved roads.

Varela will also launch next year the US$5.25bn expansion of Panama Canal, which will double its capacity. Works have suffered delays this year following a financial dispute with the consortium in charge of the project and a strike.

Varela, of Partido Panameñista, had been vice president until August 2011, when Martinelli dismissed him.