$32 million “detail” escaped Ministry attention

THE COLÓN urban renovation project will cost $32 million more than what was announced when the contract was first awarded to the consortium  of the Brazilian construction company Norberto Odebrecht and the Panamanian firm Cusa.

 According to the Ministry of Housing, the contract amount was changed because items that had been established in the statement of objections were not included, such as the preservation of certain buildings.

Maxwell de Obaldia, director of engineering and architecture for the ministry, acknowledged that the costs should have been included in the original contract, saying it was “a detail that escaped attention.”

He said that the prices of these additional items were fixed by the ministry, and would have been the same for whichever company won the bid, therefore it did not affect the final bids.

The contract, with the new price, has been endorsed by the comptroller.

It will now cost $569 million, not the $538 million originally announced.

The project includes the construction of 5,000 homes, improvements to streets, drainage, sewerage and wastewater treatment, the burying of cables and the creation of recreational areas.