Construction Begins on the $14.1 Million Dog and Cat Hospital Awarded to the Company Restoring the Diplomatic Villa

This project was an investment exceeding $14.1 million. Also present with the President were First Lady Maricel Cohen de Mulino; two of his daughters, Monique and Verónica Mulino; and the Ministers of Canal Affairs, José Ramón Icaza; of the Presidency, Juan Carlos Orillac; of Agricultural Development, Roberto Linares; and of Health, Fernando Boyd.  President José Raúl Mulino and his family broke ground on the pet hospital, a project costing over $14.1 million and being carried out by Construction Management Group Inc. (CMG).  This is the same company that, last October, was awarded a $7.1 million contract to restore the Quarry Heights diplomatic villa in Ancón. 

First Lady Maricel Cohen de Mulino broke ground on the $14.1 million pet hospital.

The hospital, which will focus on the care of dogs and cats, will be built in Costa Sur, a district of Don Bosco, near the Southern Corridor. Mulino has expedited the project because it is one of the most important of his electoral campaign, conceived by his twin daughters. Interestingly, the Mulino sisters have also expressed interest in the work at the diplomatic compound.  “I want to thank my wife Maricel for her commitment and love for pets, and my daughters [Monique and Alexandra], who have been important pillars in pursuing this idea and starting to make it a reality,” the president said during the event, held this Wednesday, December 3.  He added that, with the start of the works, he is fulfilling his campaign promise and is committed to “contributing to building a more humane, more responsible, and more supportive Panama.

Monique Mulino, daughter of President José Raúl Mulino, also broke ground on the project.

We continue to move forward with firm steps,” Mulino stated.  The president handed the groundbreaking ceremony to the first lady, while he rang a small bell. Shortly after, his daughter Monique also turned a shovelful of dirt. Verónica, the Mulino couple’s youngest daughter, was also present.  The facility will be a kind of university hospital. A statement from the Ministry of the Presidency details that the center “will provide a space for the training of veterinary students specializing in the care of dogs and cats.”  Monique Mulino, daughter of President José Raúl Mulino, also broke ground on the project. During the ceremony, the president emphasized that she and her twin sister, Alexandra, spearheaded this project, which had been promised during the election campaign. The twins also toured the diplomatic villa, which will be restored for over $7.1 million by Construction Management Group Inc. 

Surprises

During the public event, the Minister of Agricultural Development, Roberto Linares, announced that another pet hospital will be built. It will be located in Chiriquí, the province where he and Mulino are from. Linares did not provide further details.  “Mr. President, I also want to announce that in David we have already made significant progress on the facilities for a pet hospital,” Linares emphasized.  How much is the project costing? Which company is building it? Was it a direct contract or what kind of public bidding process was used? Where exactly is it located?

These are some of the questions that the media sent to the public relations office of the Ministry of Agricultural Development (MIDA) to learn the details of a project that has been unknown until now, but which—according to the minister—is “quite far along.”  The entity initially responded that “it has not started the process for its development…” As that response contrasted with what Linares announced earlier, the public relations office later retracted it. 

In response to persistent inquiries from new media, the Ministry of Agricultural Development briefly stated that “the minister indicated that the pet hospital in Chiriquí will be located at the MIDA headquarters in David. The structures to be used are part of the complex, located in the district of San Pablo Viejo.” 

A Process Surrounded By Complaints

Before the financial bids for this public tender were made public, some companies filed complaints with the General Directorate of Public Procurement, alleging that the tender specifications contained provisions that limited participation and violated the principle of equal opportunity. This led to the temporary suspension of the bidding process until the Ministry of Agricultural Development (MIDA) made the necessary corrections.

Among the participating companies, four submitted valid bids on June 9: Administration and Supervision of Civil Works (which bid $14.2 million), Rigaservices Construction Company ($14.2 million), Aprocosa Construction Project Administrator ($14.9 million) and Construction Management Group or CMG ($14.1 million).  These last three companies —Rigaservices, Aprocosa and CMG— joined together in the Consorcio Construcciones Hospitalarias SA to finish the construction of the City of Health, which managed a budget of $500 million, after the company FCC failed to meet the delivery schedule of the first two phases. 

In partnership with Aprocosa, CMG is also in charge of the restoration of the San Felipe de Portobelo church, the San Juan de Dios chapel, and surrounding areas in Colón. In this case, there was no public bidding process: it was a direct contract for $12.2 million awarded by the Ministry of Culture , with the approval of the Cabinet Council .  CMG, Aprocosa and Rigaservices are on the client list of Palacios Vásquez & Asociados, the firm of lawyer Odila Castillo , a former advisor to the Comptroller General of the Republic who managed multimillion-dollar contractual balances during the administration of former comptroller Gerardo Solís (January 2020-December 2024).

Special Clauses

The contract for the construction of the pet hospital was awarded under the turnkey modality, which establishes payments in stages and a term of 608 days to complete the work (approximately one year and six months), by mid-2027. The Ministry of Agrarian Development (MIDA) included a clause that allows the hospital to be enabled before its completion through a “substantial act,” an exception that has historically been the subject of controversy in public projects. The contract stipulates that “payments for the execution of civil works, services, maintenance, and other obligations besides equipment will be made in installments based on progress.” For this year, it indicates that the company will receive $340,000 earmarked for “preliminary work, studies, permits, and design.” Subsequent payments are distributed as follows: in 2026, the company will receive over $10.6 million over 12 months for design, plans, and construction; in 2027, an additional $3 million for construction and equipment. Furthermore, over $44,700 is allocated for maintenance over a seven-month period. 

Scheduled annual payments that Construction Management Group Inc. would receive for the construction of the pet hospital, valued at $14 million, according to the contract between the Ministry of Agricultural Development and the company.

The payment schedule also includes the years 2028 and 2029, with disbursements of $76,666.67 each for maintenance. However, for 2029, a final additional payment of $31,944.44 is added, corresponding to five months of maintenance. The new facilities will include eight examination rooms, two waiting rooms—one for dogs and one for cats—an emergency area, X-ray facilities, a pharmacy, a cashier’s office, a grooming salon, admission and preparation rooms, a vaccination room, and outpatient operating rooms. They will also include a 300-square-meter hospitalization area. 

The hospital will also feature a retail area integrated into the reception area, including a pet shop where owners can purchase items while they wait. It has not yet been announced who will manage this space or if it will be leased out.  Also present at the groundbreaking ceremony with the Mulino family and Minister Linares were Ministers Fernando Boyd (Health) and Juan Carlos Orillac (Presidency); the Secretary of Goals, José Ramón Icaza; the Mayor of Panama City, Mayer Mizrachi ; and the Governor of the Province of Panama, Mayín Correa.