Tocumen axes Odebrecht airport contract

Tocumen International Airport, SA has terminated the contract with CNO, SA – as the Brazilian Odebrecht is now named – for non-compliance in the construction of the new passenger terminal.

The cancellation of the contract entails the disqualification of the company (which has confessed to paying bribes in a dozen countries, including Panama) from participating in public works tenders and contracting with the Panamanian State.

The decision was announced on Tuesday, September 28, by the general manager of Tocumen, Raffoul Arab, who explained in a statement that the official notification to ASSA Compañía de Seguros, SA about the breach of the clauses agreed with the contractor has already been proceeded. “To guarantee the completion of the work through the execution of the performance bond and protect the best interests of the State.”

ASSA has the performance bond for the work, for $229 million.

The last addendum to the agreement between the company and the State established that the work should be completed by September 30, 2021, but after a new inspection it was known that “as of September 27, 640 pending elements were still registered.” Originally, in February 2020, 10,547 “pending” were detected, which the company had the obligation to correct.

Odebrecht had asked that the deadline to complete these pending works be extended until December 31.

Tocumen stated that, despite the cancellation, it will guarantee the operation and start-up of the new terminal, measuring 116,000 square meters, whose construction began in 2012 and was partially released in January 2019, when Panama hosted the World Day of Youth (WYD).

The construction of the new terminal has not only taken a long time; its price has also increased from $679 million to $ 917 million. Along the way, eight addenda were agreed.