Alternatives to Finish Construction of Tocumen

The administrators of the Panamanian airport are evaluating three options to continue the construction of the new terminal, if Odebrecht fails to complete it.

Wednesday, February 15, 2017

The first option being considered by Tocumen S.A. is that the administrators themselves take control of the subcontractors who are currently working on the project. The second alternative, is that the company that is managing the project assumes supervision of the contractors, and a third option is to hire a new company to replace Odebrecht.

"... The last option would be to find a new contractor. This, according to Joseph Fidanque III, manager of Tocumen, would involve other legal aspects such as performance bond. 'If the company decides to abandon the project, we would execute the bond, which is about 240 million dollars, but if the government decides to remove them, the situation would be different and it would not be easy to use the bond' said Fidanque. To date, Tocumen has paid 642 million dollars to Odebrecht, leaving 238 million dollars left to pay."

"... In addition to the contingency plan, Tocumen has asked Odebrecht for a monthly report of the payments made to subcontractors, in order to prevent the work being halted due to lack of payments. Also the airport has changed its method of certifying payments to the Brazilian company."



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Tocumen Prepares Bond Issue

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To obtain the financing needed to complete the expansion of the South Terminal, the administrators of Tocumen International Airport plan to issue debt certificates once again.

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