The road infra PPPs to be inherited by Panama's new govt

Panama's second-ever PPP project, which entails the repair and upgrade of a stretch of the Pan-American West highway, is set to be tendered by the new government headed by president-elect José Raúl Mulino, later than initially planned.  

The delay is due to issues with the bidding process for the first PPP – the upgrade, operation and maintenance of a 247km section of the Pan-American East highway – the award of which was contested by bidding participants.

“Basically, there were observations by contractors regarding the winning consortium [Intervial Chile], but that's quite normal in the process, as long as the principles of transparency and legitimacy are met,” the head of the public works ministry's (MOP) PPP office, Ramón Adames, told BNamericas.

According to official documents reviewed by BNamericas, last year the MOP expected to have the first PPP under construction and another three PPP projects in the tender stage by now. Those three would be the Pan-American West highway, the construction of the Costanera interurban highway and a third involving construction improvement and maintenance of the Centenario and Arraiján Chorrera highways. 

Nevertheless, according to Adames, only the first PPP will be under construction by the time President Laurentino Cortizo’s administration hands over power on July 1. By then, the prequalification process for the second PPP involving a 206km stretch of the Pan-American West highway will be complete and the others will still be in the prefeasibility stages. 

“We've approved the start of construction of the Pan-American East highway project. We're also leaving the Panamerican West highway initiative with 10 prequalified companies. The ministry will await the start of the new administration to launch the bidding process,” the official added. 

According to a decision by the PPP authority published on procurement platform Panamacompra, the prequalified companies for the second project are: Ayla Constructora; Intervial Chile; Obrascon Huarte Lain; the Autopista Panamericana Oeste consortium formed by Ortiz Construcciones y Proyectos and KMA Construcciones; Strabag; the Vías del Istmo consortium formed by Promotora y Desarrolladora Mexicana de Infraestructura, Calzada Construcciones and Ingeniería Estrella; the Chorrera-Santiago consortium formed by Mota Engil and Mota Engil México; the Panamericana Oeste consortium formed by Constructora Rodsa and Cointer Concesiones; China Harbour Engineering Company; and the CPA Oeste consortium formed by Constructora MECO and Constructora MECO Panamá.

The current administration prepared an eight-project PPP portfolio, which also includes the upgrade of the Central region road network, the refurbishment of the West region road network, the Azuero road network project and the David north corridor, among others. 

“The tender process for the Pan-American West highway project will take four months and we will also leave eight projects in the prefeasibility stages,” said Adames.