Yes this may definitely affect PTQ.
Rather PDI actually. As you must know if you have been following the biggest story in Panama for the last month and one-half. GUPC is out for breach of contract, and the government has decided to finish the expansion by direct control and direct contracts. The money is readily available one half coming from the performance bond and the other half from money that will be withheld from GUPC. This is fantastic news for the Panama infrastructure sector. FQM should be watching. Now that the election nominations cycle is over, and Marta Linares is the candidate for CD VP, the canal expansion is being taken over by the government with support from all three major political parties, unions, U of Panama, Chamber of Commerce, and 81% of the general population, attention now turns to Cobre-Panama development.
FQM is under great pressure after being caught trying to import thousands of laborers from the Philippines and been put on notice to resolve whatever issues they have with Petaquilla and move forward.
Sacyr and Impreglio assumed they could low bid and then increase their cash flow afterwards, with change orders as they have done all over Latin America. That was a mistake to try in Panama. Most knew when they underbid Bechtel and other bidders by nearly 40% they could never succeed. Now they fell into the trap and are out. Don Winner's editorial was exactly on point let us hope FQM is paying close attention. Martinelli has made it very clear to them that they will be outside looking in, if they have not completed negotiations with PTQ/PDI and published their Engineering Plan well before the election in two months. Remember when Law #8 was repealed and posted the the Official Gazette in 24 hours. The government can take back Cobre-Panama from FQM just as quickly and leave PDI in the cat bird's seat for contracts.
Contributed by Don Winner. Panama Guide.
"The Panama Canal Authority had all (100%) of the negotiating power, while the GUPC had almost none. Their threats to walk off of the job (originally on 20 Jan, twice extended) fell on deaf ears, because they had, in fact, already laid off most of their work force at the end of the year. So, in fact, they had already stopped working. Now the ACP can simply hire someone else. They can now spend the $1.5 billion (or more) needed to finish the Panama Canal expansion project. They also have the GUPC companies by the balls - one in each hand - because of the contract they signed. The ACP will be able to argue in international courts that the GUPC should have been able to build the project according to the contract they signed, and they should be able to squeeze the companies for the money necessary to actually build the damn thing. So, who's fucking who now, bitch? Welcome to Panama, where screwing over foreigners is a favorite pastime..."
FRONT PAGE NEWS THIS MORNING!!!
The Panama Canal Authority (ACP ) is preparing to resume work to expand the waterway for its own risk in order to complete them by the end of 2015.
" The ACP provides the retaking of the works within a maximum of 15 days ," said to EFE today a source of information that participated in the negotiation by that entity Groups Unidos por el Canal ( GUPC ) , the international consortium awarded of the work of the expansion of the road , this week stalled for lack of funds .
THE ACP and GUPC rose this week from the negotiating table , which also involved the insurance firm granting the works , Zurich, and in the last hours separate proposals exchanged in securing their final positions.
At this point , the first goal of the ACP is " make it clear to the insurer Zurich does not preclude an agreement , but only if it complies with the terms of the contract " award, said the source, who requested their anonymity.
" GUPC also will not be able to accept the terms of the ACP regarding the postponement of the repayment of approximately $ 800 million , which are secured by bank letters of credit ," he added .
The same source said that the only plan that ACP provides further that GUPC meets the contract is to take on their own works and revealed that the U.S. company Bechtel offered to finish the canal expansion but his offer was rejected without consider even economic conditions.
" Bechtel approached the ACP to offer their services and the negative response was blunt to the point that he was warned that would not be received again," he said.
Sacyr and Impreglio are broke and their stocks have crashed in Spain and Italy over the last month as I am sure you saw. The ministers and Ambassadors of Spain and Italy have come to Panama to plead for money and been rebuffed. USA VP Joe Biden came to put forward a plan for Bechtel to intervene and finish the expansion with a new contract and asked for money from Panama, all to no avail. Panama will finish the canal with direct control and contracts with local companies. Since the USA has spent $50 billion dollars to expand the ports on the east coast, the USA is anxious to see the work completed on time. I am sure you have seen all the articles in the US papers from NYC to New Orleans and on Wall Street, in support of Panama's commitment to pick up the mess created by Spain and Italy.
WHAT A GREAT DAY FOR ALL PANAMANIANS!!! LET THE CONTRACTS FLOW... $1.6 BILLION IN INFRASTRUCTURE MONEY COMING TO THE SECTOR CONTROLLED BY CD!
