Together with FCC Construccion, the controversial Brazilian construction company won the contract to design and build the branch of Line 2 of the Panama Metro, which will connect the future ITSE with the Tocumen international airport.
On November 27th, the award resolution was published, which consists of design engineering services, construction of civil works, auxiliary line installations and stations, and interfaces for the operation of the branch that connects Line 2 of the Panama Metro with the Instituto Tecnico Superior del Este (I.T.S.E.) and Tocumen International Airport (AIT).
Centralmix was awarded the contract to rehabilitate streets in the townships of Bethania, Curundu, Don Bosco, Juan Díaz, Parque Lefevre, Pueblo Nuevo and Río Abajo, in the province of Panama.
On October 18th, the resolution of the contracting process for the works of the rehabilitation of streets of several townships of the province of Panama was published.
The submission of proposals for the design and construction of a vehicular walkway and road interchange on the Cabuya roundabout in the province of Panama was postponed until November 30th.
The Ministry of Public Works decided to change from October 30th to November 30th, the deadline to receive proposals for the road work with a reference value of $66.0570.156.
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.
August 31 is the new date to submit proposals to design and build the branch that will connect the future Higher Technical Institute of the East, with Tocumen International Airport.
Metro de Panamá has granted a second extension to the deadline for delivery of bids, so that the companies interested in the tender can present their proposals for the work, which consists of the construction of a stretch of two kilometers, which will have two stations.
Following the Guatemalan government's liquidation of road works contracts with Brazil's Odebrecht, it has been announced that the date to submit bids in the new contests will be April 6.
The presentation of offers in the new competitions had been set for March 23, and after the Ministry of Communications completely rescinded the contracts with the construction company Odebrecht, representatives of the executive announced that the proposals for the works on 140 kilometers of the CA-2 road, will be received on April 6.
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.
Although they have not finished liquidating the contracts with the Brazilian company Odebrecht, Guatemalan authorities say that the bids to conclude the works are going ahead.
The contracts that the Ministry of Communications intends to terminate early are those corresponding to the extension of 97 kilometers of the CA-2 West highway. To conclude these works, the institution is launching new tenders, for which there is time to participate up until February 23.
The Morales administration's proposal is to liquidate the construction and expansion contracts that the Brazilian company Odebrecht abandoned and to launch new tenders to complete the project.
The government is preparing a bill that will allow for liquidation of the contracts to build and expand the CA 2 Oriente and CA 2 Occidente routes, and carry out an audit to determine costs, progress and quality of the work that was carried out by Odebrecht and subsequently tender the jobs that are pending.
The government of Guatemala has agreed with the Brazilian construction company to bring forward the termination of contract for extending the CA-2 Occidente highway and will launch a tender for three contracts to complete the remaining 97-kilometer stretch.
The contract was awarded to construction company Odebrecht in 2012, and after the corruption cases the that it was involved in came to light, the government of Guatemala decided to negotiate the early termination of the contract. The head of the Ministry of Communications, Infrastructure and Housing (CIV), Aldo García, told Elperiodico.com.gt that "... because of the reservation there has been over the investigation of this case, it can only be anticipated that the agreement reached with the company is under legal review, a company which in 2012 obtained the contract for the extension of the CA-2 Occidente highway for US $399 million."
In an agreement with the Panamanian Public Ministry, the Brazilian construction company has committed to delivering all of the information related to Panama and paying a fine of $220 million.
From a statement issued by the Public Ministry of Panama:
August 1, 2017. - On Wednesday, July 26 of this year, the Public Ministry of the Republic of Panama signed an EFFECTIVE COLLABORATION agreement with ODEBRECHT, in compliance with Law 121 of December 31, 2013 (Law on Organized Crime), Act 15 of May 10, 2015 (Act adopting the United Nations Convention against Corruption) and Law 4 of February 17, 2017 (Law on Agreements on Penalty and Effective Collaboration in the Inquiry- Mixed System).
Moody's estimates lower economic growth in Panama in the short term, due to the potential negative impact of the delay in investments and the possible cancellation of large projects awarded to the Brazilian construction company.
Although the controversial Brazilian company, accused of having developed a worldwide corruption network, had interests in several Latin American countries, it was in Panama that a large number of its projects were concentrated, ranging from the urban renewal of Colón, currently under development and with a estimated value of $500 million, to the contract to build the hydroelectric station Chan II, estimated at $1 billion and recently canceled by the Varela administration.
Although the $2.6 billion fine is the highest of its kind in history, it is almost half of what the Brazilian construction company initially agreed with the US Attorney's Office.
The fine imposed by a court in the Eastern District of New York puts an end to, at least in US courts, one of the most controversial corruption cases in history, involving the involvement of state officials and companies, businessmen and high ranking politicians.
Empresa de Generación Eléctrica will now be responsible for the concession, while the Varela administration evaluates how and when to re-tender the project.
From a statement issued by the Presidency of Panama:
The Cabinet Council approved on Tuesday the signing of a termination agreement, by mutual agreement, of the Partnership Agreement for the Chan II Hydroelectric Project.