$89.1 million controversial road contract revoked

Panama’s Ministry of Public Works is revoking an $89.1 million road-building project that is only 10 percent complete and has raised the ire of environmentalists.

On January 17, 2018, the MOP delivered to the Astaldi consortium the order to proceed with the design and construction contract for the Omar Torrijos avenue between Corozal and the Centenario bridge.

Through a letter published in panamacompra.gob.pa on May 9,  Minister Ramón Arosemena informed the legal representative of Astaldi the beginning of the process of administrative revoking of the contract reports La Prensa.

Arosemena lists a series of breaches by the contractor, in environmental aspects, design delivery periods and control and monitoring of project execution.

The company has a period of five days to submit its disclaimers to the MOP. Once this term is fulfilled, the entity is in a position to issue the rescission resolution, which could be challenged by the contractor.

Astaldi Panama told La Prensa that “in conjunction with our legal team, it is advancing a response project to the note published by the MOP, which will be presented within the term granted by law.”