For the fourth quarter of 2019, 15% of Guatemalan companies are expected to increase their payrolls, a proportion that is slightly lower than the 16% recorded in the same period of 2018, which could be explained by the lack of legal certainty and the recent general elections.
Guatemalan employers report moderate hiring plans for the fourth quarter of 2019.
The reforms to the State Contracting Law under discussion in Guatemala establish five criteria for the Government to terminate the contract with a company in advance.
The proposal is currently under discussion in the Public Finance and Currency Commission of the Congress of the Republic, and among its main objectives is to solve the problems arising from litigation between contractors and state entities, because of issues related to unfinished works.
The Guatemalan government will liquidate the works contract to extend 100 km of the CA2 East highway, which connects the department of Escuintla and the border with El Salvador.
The Ministry of Communications announced that this month they plan to liquidate the contract with Sigma Constructores, which had as objective to expand from two to four lanes the stretch of road that goes from Escuintla and ends at the border Ciudad Pedro de Alvarado, Jutiapa Department.
After multiple attempts to liquidate the contract and collect the bonds for the road works that were awarded to the Brazilian construction company, the Guatemalan government has finally received the money and will be able to tender the works again.
Representatives from the executive board announced that they have already received two bonds corresponding to the road works for 140 kilometers of the CA-2 highway, meaning that the path to bidding for new contracts is practically open.
Following the Brazilian construction company's abandonment of the road work contract that had been awarded, the government intends to make a claim on the advance payment and performance bails which amounts to $122 million.
The contract consisting of the extension of 140 kilometers of the CA-2 West highway was awarded to the construction company Odebrecht in 2012, however, the company abandoned the work after performing work on only 43 kilometers.
Amid the controversy over corruption cases revealed by the Public Ministry, the Morales administration has announced that it will liquidate contracts and take over several highway construction and maintenance projects.
A government issued decree of a State of Public Calamity on the roads will have a term of 30 days, during which period the Morales administration plans to take over control and execution of several of the works that are underway.Without indicating how much will be invested in the process, the Executive explained that it will buy machinery and equipment to carry out repairs and construction of roads.The Ministry of Communications, Infrastructure and Housing will be in charge, with the support of the Ministry of National Defense.
While pressure grows in Guatemala for the contract with APM Terminals to be annulled, the US company American Ports has expressed interest in operating the port.
Following opposition on the part of Congress to the possibility of approving a bill put forward by the executive branch proposing the granting of a direct concession to APM Terminals, now the Comptroller General of Accounts (CGC) has recommended declaring the contract void and starting a new process.
The Executive Branch is considering the cancellation of the lease agreement between Ferrovías and Cobigua after the Attorney General's Office filed a complaint alleging anomalies.
The Executive is evaluating whether it will declare invalid the lease agreement between Compañía Desarrolladora Ferroviaria (Ferrovías) and Compañía Bananera Guatemalteca Independiente (Cobigua) days after the PGN filed a suit with the Public Prosecutor to start an investigation to determine " ... who were the people responsible for signing the contract, in addition to identifying what legal standards were used by Ferrovías to finalise the aforementioned contract, since that company has no power over the state." See "Corruption denounce in the concessioning and management of Puerto Quetzal" Lahora.gt reports that "...The contract entitles Cobigua to use the port of Puerto Barrios, Izabal, until 2048, after the expiry last year of the onerous usufruct contract, awarded in 1990. In the view of the former Attorney General of the Nation, Maria Eugenia Villagran, Ferrovías had no authority to give the port administration over to Cobigua."
President Morales has already given clear signals that the concession contract with the company Puerto Quetzal TCB, will have to be canceled.
Despite being a decision which falls to the Attorney General's Office, in response to persistent queries by journalists, President Jimmy Morales said "... 'The declaration of invalidity is a fact that must be declared. '"
In Costa Rica, 19 projects were selected as "eligible" by the state run power company, but the same institution has ruled out opening new competitions to purchase more wind-generated power.
EDITORIAL
Investment in alternative energy is risky, because it depends on uncontrollable external factors such as unpredictable weather variations, which have particular effects on hydraulics, solar and wind power.
Among the works whose execution has been suspended because of lack of funds is the construction of bridges, schools, water systems and roads in different parts of the country.
The Social Development Fund (FODES) said it needs at least $15 million to resume the 43 projects that were suspended after the Ministry of Finance rejected its application for funds.
The Attorney General's Office has recommended the onerous usufruct contract signed with the Spanish Terminal de Contenedores Quetzal be declared void.
If the Executive Branch does not declare it void, as recommended by the Attorney General's Office (PGN), this entity could "take appropriate action". PGN's argument is based on "... the auditor having exceeded its functions in signing the contract.
Actions have been announced by the Comptroller General's Office to declare the contract signed in July 2012 with the Spanish International Container Terminal Quetzal as detrimental.
An article on Lahora.gt reports that "... the Comptroller General of Accounts, Carlos Mencos, confirmed to La Hora that no later than next week, a group of lawyers from the company submitted to the Attorney General's Office, the documentation needed to declare the usufruct contract between the Spanish company Container Terminal Quetzal (TCQ) and EPQ, signed in July 2012 as harmful.
The electricity generating plant based on coal did not start supplying energy on the date stated in the contract, therefore Energuate has canceled the contract and will be enforcing the guarantee.