Next government will inherit $233 million Cinta Costera debt

The government that succeeds the present administration in Panama will inherit a sizable debt for the construction of the third phase of the Cinta Costera.

Although it is  still unknown which route it will take, and how it will affect Panama’s World Heritage site, Casco Viejo, it is certain that the payment of the work will transcend this administration and that at least 30% will be have to be paid by the next government says La Prensa.

The price of the project is projected at $ 776.9 million,  but the next administration will owe  the construction company Norberto Odebrecht $233 million.The project contract set a payment schedule from July 31, 2012 to January 31, 2016. And the $ 776.9 million may not be the final amount of the work.

The contract says that during the execution price may be adjusted upward or downward, depending on the evolution of construction inputs. This leaves the door open to future add-ons , heavily criticized by Ricardo Martinelli when he was in opposition.

The now President also criticized the secret way the information was handled during the first phase of the coastal strip, built by the administration of Martin Torrijos, but in power Ricardo Martinelli has pursued a similar policy said La Prensa.

The first phase, which got a tongue lashing from Martinelli cost $189 million, and he condemned "secret" deals with the Mirimar Hotel and the Fishing and Yacht Club, both of which caused public outcries. He said that the work was against the interests of the state.

But, says the report, the present administration dealings have also been obscure.