I was wondering last week how much all the new infrastructure projects that have been announced in Panama add up to and low and behold, La Prensa comes through with an article breaking it down. It adds up to over $3 billion and is in addition to the $5.5 billion being spent on the canal expansion.
There is no doubt that all of these infrastructure projects will be very positive for the country both in terms of public use and the economic activity that comes along with large government expenditures. Certainly foreign investors look at all of this as good news and see it as an opportunity to get in on a great ride of growth in a small country when the rest of the world is languishing in economic doldrums and or disasters. After all, there are not a lot of places in world with this kind of economic action going on. This is because Panama is considered a great credit risk with all the major rating agencies now giving it investment grade status. This change in credit status can be attributed to the much needed tax reforms. In the scheme of things the new administration has accomplished a great deal in its first year in power.
Unfortunately, the rest of the world is already wallowing in debt that has choked its ability to grow because private capital realizes that there is no way that debt can be paid back. The only ones willing to loan more to these failing economies are those who print money, not earn it. We are still waiting to see how all of that will unfold on the global stage, but Panama seems to be going along the same trend of borrowing now while it can in hopes the money will come later to repay the debt holders. With over $11 billion in current debt, adding another $8.5 billion on top of it, just does not seem prudent in times like these. But, today we should eat, drink and be merry, for the morrow we must work hard to pay back the debt holders.
Roberto Gonzalez Jimenez
[email protected]
The $3 billion of public investment plan, the Government has become a lure for big builders from around the world. They, in turn, are a sort of trademark of the government of Ricardo Martinelli.
With less than a month to ensure compliance with the first year of administration, the Government has put out to tender large projects for more than $ 3 billion.
In most cases the figures are approximate, because after the bidding process the final amount of the contracts may differ from that estimated in the reference price.
The most important of the projects tendered is the design and construction of the first Metro line of Panama, the big contract administration Martinelli. Three groups of companies nationalities Spanish, Japanese, Brazilian, Italian, French and Mexican pre-qualified to take over this project.
Although the official reference price of this project is secret, estimates of the Ministry of Economy and Finance are around $1.5 billion.
The other major project linked to transport improvements is the new urban bus system, called Metro Bus, which started with a reference price of $ 270 million.
In this case the three interested consortia have already submitted their technical and economic proposals. A committee evaluates the nominations and recommend in the coming weeks to the Transit Authority and Land Transport hiring one of the groups.
With an estimated investment of more than the Metro Bus, another major government projects is the construction of five new hospitals. Six consortiums Spanish, Korean, Dominican and Colombian made their technical and financial proposals on 31 May.
For its part, the competition for the construction of the New prison complex, a contract that is estimated around $ 140 million, there is only one prequalified bidder, UM Panama.
Airports
One of the stakes the government has is to improve air connectivity both the capital and interior.
Although the process had begun during the previous administration, this Government led and won the bid to extend the Tocumen International Airport Conconcreto Colombian companies and Odinsa Group for $ 68.65 million.
They were also awarded the Enrique Malek airport expansion of David, Chiriqui. The contract was won by Argentina Riva for $ 27.4 million. New airport projects such as Colon or others are to be located in central provinces have not yet been tendered.
Roads
Much of this five-year investment will be on roads.
They are currently in the final stage of tendering the routes increases from David to Boquete, which most likely will be executed by the Panamanian Cusa, and the La Villa Los Santos, which is recommended Meco Costa Rica.
The extension of the first section of the road of the peninsula of Azuero, which is the currency of Chitre, and was awarded to Argentina's Benito Roggio for $ 109.9 million.
They have also been awarded the extension of the coastal strip to San Felipe ($ 52 million) and the completion of the highway Panama - Colón ($ 218.5 million). On both occasions the Brazilian contractor Odebrecht is the same company that took the urban renewal project for $ 94.3 million Curundú.
Other government plans include the expansion of the American between David and Santiogo, and the highway Arraiján-La Chorrera, a new road between Howard and the Centenario bridge, overpasses in Panama to easing traffic congestion in the capital and the extension of the coastal strip to the Amador Causeway, yet tender projects.
The coastal strip largely connected with the new convention center. The Tourism Authority of Panama and has the conceptual designs, which hired the U.S. firm SOM, but the project has not yet gone out to tender.
At the same status of the financial tower. Seems to be the greenest city government project after the Ministry of Finance to cancel the contract with the firm responsible for the design.
In the queue of major projects the Government is the cold chain, a major campaign promises Martinelli.
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