Tenders: "Must Have Experience in Latin America"

The specifications for the tender for a $158 million water treatment plant to be built in Panama, include the need to have experience in at least two similar projects in Latin America.

Monday, May 9, 2016

The requirement eliminates from the competition firms from countries outside of Latin America that have global experience but not exactly in this region, which analysts say represents a violation of free trade and protection of investment treaties signed by Panama with other countries, specifically with the United States.

An article on Panamaamerica.com.pa reports that "... The Institute of Aqueducts and Sewage Systems (Idaan) is preparing an ambitious investment plan totaling $702 million in water treatment plants in David, Chepo, Santiago, Chilibre, Gamboa and Panama. It relates to six tenders to be awarded between May and June this year and has attracted interest from companies from around the world. However, the first documents published by the Idaan are already facing serious questions that could put the country up against its main trading partner: the United States. Both nations have in place a Treaty of Trade Promotion (TPC), which establishes new rules for trade, investments and government procurements which must be fully complied with."

In this regard, the director of Idaan, Julia Guard, said that "... At the Idaan, we are not restricting the participation of any company in requesting that they have experience in Latin America, the objective we are trying to reach is for these companies to have constructive experiences in similar projects in the area ... we hope that all stakeholders introduce themselves who have the technical and financial capacity to carry out the requested works. As we stated above, we are not facing a restriction, and after a review and analysis of the relevant articles in the Chapter on Public Procurement and its annexes, of the Free Trade Agreements US-Panama, the Singapore-Panama Free Trade Agreement and the agreement between Central America and the European Union we are able to state that Panama, through the Idaan is not infringing these treaties. "

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