The consortium formed by Odebrecht and FCC Construction is negotiating with international banks to redefine the funding structure for the project, valued at $2 billion.
Since the start of the revelations of the corruption scandal in which the Brazilian construction company Odebrecht was involved, doubts have arisen about how this could affect financing of the construction project for Line 2 of the Panamanian Metro, whosecontract was awarded in June 2015under the turnkey format.
Italy's Salini Impregilo, Brazil's Odebrecht, the Chinese firm CHEC and Costa Rica's MECO are the four companies that participated in the field trip to see the route that line 3 will take.
From a statement issued by Metro de Panama:
With a visit to the site where the works of Line 3 of the Metro de Panama will be developed, today saw the start of the pre-selection process of companies eligible to participate in the Best Value Tender with separate evaluation for the construction of this mega project, which will benefit a large population of the province of Panama West.
The Metro will have an elevated station in front of Tocumen International Airport, near the point where terminals 1 and 2 connect, with an estimated cost of $30 million.
Carmen Carrizo de Pages, vice president of Planning and Strategy at Tocumen International Airport, explained that "...the station will feature elevators and escalators [for people] to take the Metro or to go to T1 orT2".
After declaring the preliminary procedure void, a new tender has been launched for the marketing of advertising space in Metro Line 1.
According to records on PanamaCompra.gob.pa on October 12 a declaration of void was given to the public act for the "development, marketing and management of the advertising inventory for physical spaces on Line 1 of the Panama Metro."
$660 million will be invested to extend Line 2 up to El Dorado mall and extend by 2.2 kilometers Line 1 to Villa Zaíta, in the town of Las Cumbres.
Among the advances made by Metro de Panama since the intention to extend the lines was announced in January 2016 is the preliminary design of the extension of Line 1 by 2.2 kilometers and"... preliminary analysis of the environmental impact study."
As well as approval for financing of its construction in February, an environmental permit has now been granted to develop the Metro line that will reach Panama West.
Progress of the project has now been consolidated now that along with funding,which was approved in February, approval has been given to the Environmental Impact Study, which states that"... the line will occupy 160 hectares in its area of influence, of which 42 hectares possess vegetation".
The consortium formed by Odebrecht and the Spanish company FCC will have to find a new bank to grant the funds that Citibank was supposed to provide under the original financing structure.
The exit of Citigroup from the $1,857 million financing structure for the design and construction of Line 2 of the Panama Metro could be due to the recent deterioration in the risk perception of the Brazilian company Odebrecht, whose rating Fitch cut on May 3, citing the "... the increased risk and uncertainty associated with lack of publication of the financial statements of the company at the end of April."
The financing agreement signed between the governments of Panama and Japan includes a non-refundable $35 million for recruitment of the Project Management company.
From a statement issued by the Presidency of Panama:
Panama today finalized a landmark agreement with Japan for financing of up to B /. 2,600 million to be used for the construction of Line 3 of Metro de Panama, the country's largest public infrastructure project since the Canal Expansion.
The area in the Pacific entrance to the Canal could be leased by the State for the construction and operation of logistics infrastructure such as warehouses, cold storage facilities, ship repairs and a port for vehicles.
The 1,200 hectares owned by the State and "discovered" after cleaning and dredging of the areas surrounding the Canal expansion are part of a development plan that the Ministry of Affairs of the Canal is preparing to start when the new locks come into operation. The initial proposal is to lease the land to private companies so that they can develop the area, providing logistics services, transportation and communications to related industries.
The court ruling that imposed a 19 year prison sentence has forced a review of the projects being managed by the company in the region, where two projects which are underway in Panama alone, total $2.4 billion.
On March 8th the Brazilian justice system condemned Marcelo Odebrecht, former CEO of the largest Brazilian construction company, Odebrecht, to 19 years and 4 months in prison and to pay a fine of $35 million along with executives from the group for the payment of about $65 million in bribes to officials in the case of corruption in the state run oil company Petrobras, reported La Prensa. The ruling mentioned fraud in tenders, where bribes were also paid for the award of the works.
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