He Ministry of Public Works (MOP) and Intervial Chile SA signed a renewal and maintenance contract based on performance standards Eastern Pan American Highway.
This is the first project implemented according to the public-private partnership (PPP) model in Panama, structured by International Finance Corporation (IFC)part of the World Bank Group.
International Finance Corporation (IFC) He pointed out that the project will improve logistical communication with the eastern part of the country, increase road safety and quality, and encourage the development of agriculture and tourism.
Last month, Intervial Chile, the main operator of intercity highway concessions in Chile, won a public tender conducted by the MOP to rebuild, improve and maintain a 246-kilometer road, the only link between the province of Panama and the eastern region of the country.
The winning company plans a three-year pre-construction and renovation phase, followed by a 15-year operation and maintenance phase. Around 145,000 people will benefit directly from the works with safer and better quality roads.
The project is divided into three parts: Las Garzas – Cañita (46 km), Cañita – Agua Fría (98.2 km) and Agua Fría – Yaviza (102 km).
The Panamericana Este project was first invited and awarded under the Public-Private Partnership Law approved in September 2019 and regulated in January 2021.
The structuring process led by the IFC, with the financial contribution of the Government of Japan and the Global Infrastructure Fund (GIF), considered the establishment of performance criteria in the contract with the private operator.
“PPPs are a way to attract capital, experience and innovation from the private sector to develop large works, create jobs and respond to the challenges of the 21st century without compromising the fiscal space of governments,” said Sanaa Abouzaid, IFC regional office manager for Central America.
“At IFC, we celebrate this milestone and hope it paves the way for new PPP projects in Panama,” he added.
“IFC is advising the MOP on the pre-feasibility of the Panama Highway Program, which includes—in addition to the Panamericana Este—the structuring and bidding for five other projects totaling 1,400 kilometers of roads across the country,” he said. indicated through the statement.
Since 2004, IFC has advised and brought to market more than 170 PPP projects in 56 countries, channeling more than USD 46 billion in private investment to developing countries.
Source: Panama America
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
