The tender for the Panama Metro, suspended after the resources of FCC, Acciona and China Railway

  • The decision has been made by the General Directorate of Public Procurement of the Latin American country
  • The leaders of the competing consortiums have alleged various defects in the process to request its suspension

The Panamanian authorities suspended the tender of line 3 of the Panama metro after admitting the claims of the consortiums made up of FCC, Acciona and China Railway against the decision to declare the virtual winner to the HPH group led by the South Korean company Hyundai Engineering & Construction.

HFH Joint Venture was declared last Monday as the virtual winner of the tender for line 3 of the Panama Metro by obtaining the highest score (893) with an economic offer of 2,507.4 million dollars, above the base price of the project established at 2,396.7 million dollars.

The designated director of the Panama Metro, Héctor Ortega, said this Friday that the General Directorate of Public Procurement (DGCP) accepted the claims presented this week by the ACPC consortia, led by the Chinese Power (51%) and integrated by Acciona (49 %); Line 3, led by FCC (51%) and made up of the Mexican CICSA (24%) and the South Korean SKEC (25%); and the Chinese firm.

“Public Contracting admits the claims, and has 5 business days to answer”, after which the plaintiffs can still resort to a second instance “which is the Public Contracting Court”, explained Ortega.

While this entire process is taking place, the tender is suspended, as established by the resolutions of the DGCP in which accept all three claims and asks the Panama Metro “to send the Conduct Report and the file (of each consortium) to this address within two business days of notification.”

Ortega said he couldn’t ensure how long the process will take which is in the hands of the General Directorate of Public Procurement, but he assured that in the metro they are optimistic that the project, which seeks to benefit more than half a million people who live in the western part of Panama, can start in the summer of 2020.

In its claim, the ACPC consortium, which offered a price of 2,518 million dollars, points out that the Panama Metro “must disqualify” HPH because it presented a “conditional” financial proposal, which is not foreseen in the tender specifications.

The Line 3 Consortium led by FCC asked for its part to “order the correction of the Evaluation Commission’s report” that disqualified it from the bidding process.

La China Railway Group Limited was also disqualified and in his claim he argued, among others, that the Evaluation Commission “did not correctly apply the evaluation criteria contained in the statement of charges.”

The consortium that wins this tender will have a period of 54 months to carry out the work, for the development of which Panama agreed long-term financing with the Japan International Cooperation Agency for about 2,800 million dollars, according to official information.

Line 3 of the metro, 25 kilometers long and 14 stations, will connect the province of Panama with West Panama and will help decongest traffic on the roads entering and leaving the Panamanian capital.