Fourth bridge consortium lays off workers in spat with MOP
The timetable of Panama’s most expensive infrastructure project – the $1.5 billion fourth bridge over the canal – is up in the air as the Ministry of Public Works (MOP) and the Chinse consortium chosen to build it are in a spat over changes to the original plan which was to have included Metro Line 3.
The consortium has announced the dismissal of workers following order of partial stoppage of work by the MOP.
The MOP, meanwhile, said the dismissals are due to a “unilateral decision” of the consortium, which it accused of not meeting deadlines for the work, for which a fine of over $1 million was imposed.
The MOP ordered changes in the design of the project to physically separate the fourth bridge from the third line of the Metro.
On October 16, the entity requested the partial and temporary stoppage of work in the areas that would be affected by the modification and on December 20 requested the resumption of work, according to the new design.
The Chinse group– said in a statement that the decision to lay-off workers is a consequence of the modifications ordered by the Ministry.
The MOP responded in another statement that the company must incorporate in the design modifications that contemplate the physical separation of the fourth bridge project with line 3 of the Panama Metro.
Original plan
According to the original conception, the third subway line, which will connect Albrook with Arraiján, would pass over the bridge.
However, in a review carried out by the current administration, it was decided to separate the works.
On Thursday, The MOP said that in October it sent a note to the consortium, that some works should be partially and temporarily suspended in the areas that would potentially be affected by the design modification, but work should continue in all other areas, including design work that, should be accelerated.
On December 20, it ordered the consortium to resume work according to the new adjusted design, said MOP Minister Rafael Sabonge, who denied that the requested changes to the design are the cause of the dismissal of workers. In his opinion, it is a unilateral decision of the company, which could lead to further delays in the project.
The consortium,, said that the layoffs will continue until the final decisions on the design of the project are known.
“We will continue to work hard to restore the conduct of the project, and thus successfully comply with this large and complex infrastructure,” said the company.
In previous statements , Sabonge had indicated that the company accumulated four months of delay, but the representatives of the consortium said they were able to fulfill the different milestones established in the contract.
Due to the alleged arrears, the MOP imposed a fine of more than $1 million, which is still pending payment, said the entity.
The bridge is the most important infrastructure project currently running in the country with an investment of $1,518 million, the largest contract ever awarded by the MOP.
In a controversial tender, the Chinese Panama Fourth Bridge Consortium consisting of state-owned companies China Communications Construction Company and China Harbor Engineering Company took over the contract in 2018,
