The public procurement process that was declared void at the beginning of the year was that the company winning the contest would have to make an investment with its resources to then operate the Fourth Line and thus recover the investment. The plan contemplated that it would later transfer the operations to Empresa de Transmisión Eléctrica (Etesa).

Now, with the arrival of the new authorities, the viability of modifying the conditions of the contract is being studied. The most important change would be that the company that wins the bidding process must join forces with Etesa to develop the work under the parameters established by the Public-Private Partnership Law (APP).

In this sense, at the end of July the Ministry of Finance presented a project to modify the law regulating public contracts, which on the specific issue of Public-Private Partnerships (PPP), the proposal contemplates the creation of a regime for this type of contracts, which must be approved by the Cabinet Council, an Advisory Committee and a Governing Body.

Jorge Rivera Staff, president of Etesa, told Prensa.com that "... We are carrying out a review and evaluation of the process and the model as such. It is clear the importance of building this line within the opportune times, but it required a review of the failed tender."

The article reviews that "... Although the new board of directors of Empresa de Transmisión Eléctrica, S.A. (Etesa) analyzes the development of the fourth line through the model of public-private partnership, emphasizes that the mechanism of operation will be exclusive to the state company."

See details of the tender.

Source: Prensa.com

More on this topic

Approval for Fourth Line Electric Transmission

March 2019

In Panama, ASEP approved the reconsideration request presented by Etesa, opening the way to continue with the tender process for the Fourth Transmission Line.

Last week, it was reported that to continue with the tender process, the Public Services Authority (Asep) had requested from the Electric Transmission Company (Etesa) a justification for the development of the construction project and operation of the Fourth Transmission Line.

New Requirement to Tender Fourth Electric Transmission Line

March 2019

To continue with the tender process of the Fourth Transmission Line, ETESA will have to better justify the real need of the project and define the optimal date of entry into operation.

To continue with the tender process, the Public Services Authority (Asep) has requested from the Empresa de Transmisión Eléctrica (Etesa) a justification for the development of the construction project and operation of the Fourth Transmission Line.

Tender for Fourth Electric Transmission Line Postponed

January 2019

March 28 is the new date to present proposals for the design, construction and operation of the Fourth Electric Transmission Line in Panama.

The modification to the terms of the public tender was carried out by the Empresa de Transmisión Eléctrica (Etesa) at the request of the companies pre-qualified in the process.

Panama: Public-Private Partnership Law

August 2010

The government bill to regulate PPPs is now being reviewed by several sectors.

The law would regulate the role of the state in these associations, determine the involvement of private companies and define the contract and tender process.

"The government's contribution to the PPP would be through the payment of monies, concession of specified assets and the granting of rights on state-owned public property," reports Prensa.com.