Panama Investor Blog

Panama's metro contract awarded

The $1.5 billion dollar metro project has been awarded to a consortium headed by Brazilian construction company Odebrecht. The company has been involved with a number of infrastructure projects in the country, but this will be by far the largest contract they have won. This is the first of a proposed 3 lines for the metro which should help relieve traffic for the city and make getting to work much easier for the hundreds of thousands of people who currently are victims of the notorious red devils.

Machine translated from La Prensa

Roberto González Jiménez
[email protected]

Line One consortium formed by Brazilian construction company Odebrecht and the Spanish FCC will be responsible for implementing the first Metro line of Panama, to be victor in a long bidding process that ended yesterday.

Although its financial offer was higher than his opponent - $ 1.447 million versus $ 1.401 million offered by the Italian Group Metro from Panama, the evaluation commission gave a better score on the technical side, which made the Brazilian consortium, Spanish obtained the highest total score.

The two economic proposals were below the reference price of the Secretariat of the Metro, which was $ 1.589 million.

After learning the name of the group elected the president, Ricardo Martinelli, asked "to finish the work quickly, within budget and with as little involvement as possible." Also ventured to speak of lines 2 and 3.

For his part, Robert Roy, secretary of the Metro, was more realistic: "We have not done anything. We're starting. "

FINAL EVALUATION OF PROPOSALS

917 points for a proposal of Odebrecht and FCC.

708 points added to the proposal from Metro Italian Group of Panama.

Roberto González Jiménez
[email protected]

It was eleven o'clock when the crowded hall of the Sheraton hotel was quiet.

Shortly after the door appeared the president, Ricardo Martinelli, accompanied by his inseparable vice president, Juan Carlos Varela. The room stood.

It began with an hour delay the event that became known the winner of the logo work for the administration of Ricardo Martinelli: The first Metro line.

It brought together senior government officials, diplomats from countries with companies involved, representatives of multilateral finance the work, and many members of the consortium that would be the winner. Little Italy was heard in the room.

As revealed technical skills, the balance fell to the side of the Odebrecht construction and FCC and train manufacturer Alstom, the consortium Line One

In the six technical criteria analyzed, its proposal was superior, totaling 578 of the 650 points possible in that part of the evaluation. The Italian Group of Panama Metro was at 358 points.

It was not until they opened the envelopes containing the financial proposals as Brazilian, Spanish and French have forgotten formalisms and warmly congratulated for the win.

Although the price they offered was the highest, $ 1.447 million for the $ 1.401 million Italians, the brunt of the technical part of the contract made them winners.

His bid was below the official price of the Secretariat of the Panama Metro -1.589 million, "but was within the allowable range.

In the absence of formally awarding the process includes a period of three days for possible claims, Odebrecht, FCC and Alstom and celebrated yesterday the completion of the second contract more substantial in Panama's history, behind the design and construction of the third game Canal locks.

The joy of a contrast to the disappointment of others. The representatives of the Italian Group of Panama Metro left without signing the minutes.

11 stations

The price of $ 1.447 million relate only to the construction of 11 stations, not the 13 announced by the Government.

The consortium submitted separate bids for the stations of El Marañón and Curundú listed as optional in the statement of objections. Its construction will be decided in the coming months, said Robert Roy, executive secretary of the Metro.

Whatever the final number of stations, the line will link the Andes and Albrook and will have 13.7 kilometers, each costing more than $ 105 million.

It is estimated that work will start in early 2011, after completion of engineering work.

Antonio Gavioli, representative of the winning consortium, said it will have to work day and night to complete the project in December 2013, the date established in the statement.

Companies will receive a bonus if they deliver the work before, but will also be penalized if they are delayed.

These works, together with the road realignment, will generate a major upheaval in the city over the next three years.

Rests with the authorities, who are already calling for patience to citizenship-the apparent mission impossible to alleviate traffic congestion.

Panama bay clean up on the way

Panama has secured a 120 million dollar loan to clean up the bay of Panama and build a modern sewage treatment plant. Anyone who has visited the city can attest tot the nasty smell that comes from the area near the bay which includes all of the high end new condominiums and hotels. Soon that will be a thing of the past and who knows, maybe they will put in a white sand beach and we will have our own little Ipanema right in downtown Panama.

USD 120 million approved for Panama

CAF development bank in Latin America, approved resources that will benefit 1.2 million residents of Panama City, the Sanitation Project of the City and Panama Bay

  (Caracas, October 1, 2010) .- Due to the rapid urban development in Panama City in the last decades, which has resulted in the deficit in the sewer and pollution of the Bay of Panama, causing its path health problems and environmental, Panamanian authorities have been working on solving the problem and implement the Sanitation Project of the City and Bay of Panama, for which CAF has approved USD 120 million.

  "This project has a high social content," said Enrique Garcia, CEO of CAF - and that it seeks to improve sanitary conditions by reducing pollution in rivers and urban streams in Panama City and restore the environmentally Bay, through the construction of a Wastewater Treatment Plant Wastewater, looking to benefit from this more than a million people living in Panama City.

"Garcia concluded by noting that this is a new contribution of multilateral development financial institution in Latin America and Panama in particular "CAF has approved to Panama in the last five years a total of 1.0003 billion USD and 2010 USD 540 million within which is the approval we are announcing today.

Specifically, this project which will be the Executing Agency Ministry of Health, will build 135 kilometers of sewer lines and connections for home, collecting the proper conduct medical and sewage pipe, be designed and constructed a tunnel interceptor 8 , 2 miles long and 3 meters in diameter and the corresponding pumping station.

 The estimated total project amount is USD 538 million, of which 22% belonged to the CAF loan, 67% to other sources of funding and the remaining 11% local counterpart resources.

Where are the $3 billion in roads being built in Panama?

Thanks to La Prensa we now have a complete picture of where the roads will go and the cost of them. Many of us have been concerned about a proposed road from Boquete to Bocas del Toro. They are preparing to start the construction of a four lane highway from David to Boquete and then it is to continue over the mountain range to Punta Robalo  on the Caribbean. My concerns have been mitigated to some degree through some conversations with folks in the know here in Panama. The road will not go through Boquete, but will turn east somewhere between Caldera turn off and Alto Boquete. But the question still remains, why spend the hundreds of millions to build this road?

Well there are a number of reasons that justify the building of the road of which tourism represents a relatively small part. It has more to do with natural resources such as hydro and mining and the ability to access them. More on this later.

Should a road be built to connect Panama and Colombia?

The Darien Gap is so named because it is an area within the Darien jungle of Panama where the road has not been completed connecting the two countries of Colombia and Panama. It is only a gap of 80 kilometers, but it may as well be a million miles as there is no way to drive any further south than Panama. There have always been rumblings of a plan to complete a highway and I believe if it were not for the Farc rebels and civil war in Colombia, there would be an eagerness to complete the road linking the two countries. At this time Colombia's old and new president are harping on Panama to complete the road as the government of Colombia is investing over $600 million into a road that will basically dead end at the Colombian border. If Panama keeps it word to keep the gap as it is, Colombia will have built a road to nowhere. Here is more details on this controversial road from La Prensa.

The last 80 kilometers of a controversial road.

The construction of the 'Cross of the Americas' affect Darien National Parks and Katie.

Jose Arcia
[email protected]

The possibility of joining the north and the center in South America, through the Darien Gap, was this week a new episode.

On Thursday, Colombian President Alvaro Uribe, awarded the construction and rehabilitation of the first section of a highway in 3000 will be 47 miles from Venezuela to the Colombian-Panamanian border, in Palos de Letras.

The work, called "Cross of the Americas", provides in its first phase construction of 198 new miles of road, including the stretch of Monteria to Palos de Letras, in the border region with Panama (in red in the graphics).

The Panamanian side reach the Panamerican Highway to the town of Yaviza in the province of Darien, so there is a stretch of 80 kilometers in which there is no road infrastructure to link Central and South America.

investment in conflict

The Colombian Government's proposal is rejected by conservation groups in that country.

Organizations of indigenous and black communities of Choco, in Colombia, have expressed their rejection of the work, given that crosses the Katios Park, declared a World Heritage site, reported last Friday the Colombian newspaper El Heraldo.

Alvaro Uribe left office yesterday when Juan Manuel Santos took over the reins of the neighboring country. Both have publicly stated their desire to Panama to build the last stretch of road that would cross the Darien Gap.

Santos, in his visit to Panama in the middle of last July as president-elect, not only reiterated this desire, but with Panamanian businessmen lobbied to open the protected area.

The cap will remain

For the moment, the Colombian-road project in which the Government of the South American country would invest $ 609 million, is like a street "dead end", given that the Panamanian authorities say the opening of the Darien Gap is not into the State agenda.

Alfredo Prieto, Minister of Communication of the Presidency of Panama, said the government has no agenda to build a road through the Darien Gap. "There is nothing even to do a trail," he said.

Prieto said the Colombian authorities' decision is final, but that does not mean that the Panamanian government has plans to build a road through the jungle.

The president, Ricardo Martinelli has reiterated the Government's position not to bow to pressure the Colombian authorities on the subject.

The Minister of the Presidency, Jimmy Demetrius Papadimitriu, referred yesterday to the subject, and assured that the cap will not open.

Javier Arias, manager of the National Environmental Authority, also commented on the matter this week. He said the Darien Gap will remain as is and is not open.

An old proposal

The truth is that the idea of building a road linking Panama and Colombia dates back to 1950, when the United States and several countries of the hemisphere agreed to build a road network in the area.

Plans for the road rested with the Ministry of Public Works. This was reported in 2004 officials of the entity, but at that time unaccounted for planes. They suspected they had been lost during the invasion of Panama in 1989.

Over $3 billion in new infrastructure projects for Panama

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.

Last Thursday, two consortia submitted their proposals for studies and design of the eight public markets.

$2 billion investment includes 4 lane to Boquete

The Ministry of Economy came out with its spending plan for the next several years which includes the funding for the four lane road to Boquete from David. The last administration also promised this road and nothing came of it except some public meetings to tell us it was going to be done. Most people agree that this would be a benefit as the road is usually very busy and until recently had a great deal of construction traffic to contend with. Another important project they mention that has been talked about a great deal is the lengthening of the airport in David to accommodate large jets.

There are a number of other projects including the metro, but not a lot of detail. In any case here is a translation of the article that appeared in La Prensa today.

The government wants to implement in 2010 a public investment program of at least 2 billion dollars, reported yesterday by Minister of Economy and Finance, Alberto Vallarino.

 "The initiatives for next year are fairly clear: the subway, the city government, the expansion of the Canal, the sanitation of the bay.  And among the new ones, eg, Civil Aeronautics will include in its budget the size of airports in Columbus and David, "he said.  Also provide funds for the first phase of the road, Divisa-Las Tablas, the four-way road to Boquete, the new channel transísmico dry, the expansion of the David-way stretch and Veraguas Santiago-La Mesa.

  Moreover, said the comptroller Carlos Vallarino, is referred to the expansion of Tocumen Airport, with the north pier for $ 70 million.  This work was supported by the Comptroller.

Bocas-Chiriquí highway in the works-Say it ain't so!

This came out in the paper today and based upon my knowledge of this area they are barking up the wrong tree. First of all there is a road that goes from the inter American highway to Almarante and Bocas. Yes, it is constantly being washed out, but it is functional and an investment in making it better and safer makes a lot more sense than trying to build another one that goes through Boquete. I have hiked up to the top of the range and looked over at Bocas and I can tell you a road through there would be impossible. It would also be an environmental disaster. This is all pristine forest and should be left alone. I don't believe it will ever happen.

Excerpt:

A proposed highway linking the provinces of Chiriquí and Bocas del Toro would have a dramatic impact on the shipping of goods throughout the country, according to a report by the Ministry of Public Works.

The highway would be like a "dry canal," ministry officials said, because it would link several important port facilities.

The highway would start in Puerto Armuelles on the Pacific Coast, and then wind through David and Boquete before crossing the province and connecting to a port in Bocas.

Read the rest of the story

Free Internet for Panamanians

Source: pa-digital.com.pa
Thursday, July 23, 2009

Panama's main cities will enjoy free wireless internet access, within the first 100 days of the new government.

With the goal of having "border to border" coverage, Martinelli's government will initially invest $250.000 to service 10 cities, with coverage in parks, touristic sites, schools, libraries, universities, hospitals and health centers.

"Panama is currently the most advanced Central American country in Information and Communication Technologies, and, in accordance to the road-map developed by the Panamanian Chamber of Technology, in 2018 it will become the first Information and Communications Technology Hub of the region", said Eduardo E. Jaén, head of the Secretary for Governmental Innovation.

Technical designs and public purchasing processes are being prepared, to implement this project within the first 100 days of Ricardo Martinelli's administration.

Cinta Costera photo's

These recent photo's sent to me by Tomas clearly show a lot of progress being made on this important infrastructure project. When you consider that this was water and mud just a year ago it is an amazing testimony to the ability of men to move dirt. there has been a lot of controversy surrounding the project but at least it is nearly completed and will soon help to alleviate driving pressures in the city.

Panama pedestrian unfriendly

If you have ever tried to walk in Panama city, crossing the streets or just walking on a sidewalk can be hazardous to your health. Panama is a city where pedestrians receive no special protection and it even appears that every effort has been made to make walking prohibitive. This, in a country where most do not have cars is hard to believe, but it comes down to planning and that is in short supply in Panama. It is interesting that master planned projects out in the hinterlands and beaches must make all allowances for pedestrians even though there are few people walking around there.

Excerpt from La Prensa;

Some cities are known for being a walker’s paradise. Take for example London, Amsterdam and Savannah, Georgia. Panama City is not one of those. Those unfortunate enough to have to hoof it often encounter a sort of obstacle course of vehicles, crumbling sidewalks, and holes that plunge into an abyss. Other walkways are blocked by food vendors, piles of garbage and seemingly interminable construction work.

The few sidewalks or shoulders of roads that exist are usually used as parking spots. And crossing signals remain luxury items.

This is what happens when urban public policies have been geared to building a city around cars and not pedestrians, explained Arturo González, a civil engineer and former director of Operations at the country’s transportation authority, ATTT.