With judicial annulment of the termination by the Ministry of Agriculture, the controversial $155 million contract awarded to Ecuador's Hidalgo & Hidalgo in 2012 has come back to legal life.
The resolution ofcancellation of the contracthad already beensuspended in December 2015, after the contractor filed an appeal against it. Now, the ruling from the Administrative Court of Public Contracting (CPR) of April 22 2016 can 'annul all parts' of the resolution.
The company Hiidalgo & Hidalgo has lodged an appeal against the cancellation of the Tonosí irrigation project, estimated at $155 million which was awarded in March 2012.
With the appeal launched by the contractor, the decision to cancel made by the Ministry of Agricultural Development (MIDA) has been suspended, forcing the parties to restart negotiations.
The government has canceled a $155 million contract signed in 2012 with the company Hidalgo & Hidalgo, for the construction of an irrigation system in Tonosí.
The resolution by the Ministry of Agricultural Development (MIDA) states that after having failed to negotiate a solution over the amount that the company must repay the state for an advance which was handed over to start the project, the decision was taken to suspend the agreement .
Six companies have submitted bids for highway infrastructure works worth $75.5 million in the province of Los Santos, south west of the Panamanian capital.
The six companies were, Consorcio Benito Roggio Panamá S.A., Globetec Panamá S.A., Constructora Santa Fe, Hidalgo & Hidalgo S.A., Constructora Meco S.A., and Constructora Urbana S.A.
The offers received varied between $67.9 and $76.98 million.