Panama opens bids for first PPP contract

The Panamanian government opened the four bids it received during the tender for the country's first PPP contract, which involves the improvement and maintenance of the Pan-American East highway. 

The project includes works on 246km of the highway, from Panama Este, the east of the capital, to Darién province on the border with Colombia. 

Only four of the 14 bidders that prequalified in January, made offers: China Harbour Engineering Co., Intervial Chile, Strabag and Corredor del Istmo consortium.

The winner of the contract is expected to be announced in August.

“This is the beginning of a new way to build and rehabilitate infrastructure in our country. It is a milestone that we have accomplished in this administration: the first PPP in Panama, which is the Las Garzas-Cañitas-Agua Fría-Yaviza highway,” minister of public works Rafael Sabonge said after the opening ceremony, adding that private investment in this project will amount to US$280mn.

“The process to arrive at this point was very important. Nearly 30,000 hours have been invested, a 963-page feasibility study has been created and 1,433 queries have been answered to make sure we have an even playing field. We are very pleased with the result,” he told reporters.  

The minister said that structuring the project took four years, which was less than it takes in countries like Colombia. 

“They take a long time because the process is very important and we have to ensure that the risks are well distributed between private and public entities and that the project is bankable,” he said.