Panama companies shut out of government contracts

PANAMANIAN  companies are shut out of large scale government projects due to the size of the contracts  says Panamanian Society of Engineers and Architects (SPIA) President José Tuñón.

“The problem lies in the technical specifications that are set for the execution of the projects, since they require work experience that is not available in this country,” he told La Prensa.

For example, a $100 million contract issued by the Panama City Mayor’s Office for the revitalization of the city center requires experience in the stone paving of sidewalks, the burying of utility cables and the rehabilitation of the storm drain system.

The four companies that submitted proposals were all foreign. One of those included Norberto Odebrecht of Brazil, which has already received contracts totaling $8.5 billion from successive governments although reportedly mired in Brazilian corruption scandals.

To allow more local companies to participate, Carlos Lee, a member of the Citizen’s Alliance for Justice, said it is necessary to reform the law regulating public procurement.

Doing so, he said, would give greater opportunities to small companies.