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Panama: Line 3 Close to Being Awarded

After several complaints filed in the bidding process for the design and construction of Metro Line 3, the authorities decided to dismiss the allegations made by the ACPC Consortium and the company China Railway Group Limited.

Friday, January 31, 2020

In December 2019, it was announced that the report of the evaluation board had been partially annulled and the committee was instructed to conduct a new analysis of the proposals of HPH Joint Venture and China Railway Group.

The complaint alleged that the Korean HPH Joint Venture consortium, which submitted a $2.507 million bid and obtained the highest rating, did not meet the requirements of the tender documents.

The official document published on January 30th, states that it is resolved "... Not to admit the Action of Claim presented by the forensic firm Alfaro, Ferrer & Ramirez, acting as Legal Agents of the company China Railway Group Limited (Panama), against the Public Act ... convened by the Panama Metro...".

As a result of this resolution, the Panama Metro could leave the award of the millionaire contract firm.

The tendered project will be developed under the turnkey scheme, will have a 26.7 km route with 14 stations and will use the fourth bridge over the Panama Canal to cross to Panama West.

See details of the tender.

 

https://www.centralamericadata.com/en/article/main/Panama_Line_3_Close_to_Being_Awarded

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Korean consortium wins  $2.057 billion Metro contract with 4,500 jobs

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Posted 04/02/2020

After two months of intense legal pressure and the final rejection of the latest claims from other bidders, the Korean  HPH Joint Venture Consortium was awarded the design, construction, and financing of Metro Line 3  at a cost of $2.057 billion.

The HPH Consortium is made up of  Hyundai Engineering & Construction and Posco E&C.

The General Directorate of Public Procurement dismissed the latest claims lodged by the ACPC Consortium and the China Railway Group Limited. Last Thursday, Thursday, January 30, two were rejected and yesterday the third Monday.

However,  there are five business days for the proponents to go to the Administrative Court of Public Contracts and submit a challenge to the act, but to do so they must record a bond of 15% of the value of the contract.

Line 3 of the Metro will be 25 kilometers long and it is estimated that the entire 25 kilometers journey - from the Albrook station to the City of the Future - will take 45 minutes.

The MOP projects that the work will generate 3,500 direct and 1,000 indirect jobs. And will also benefit some 500,000 people living west of Panama City.

 

https://www.newsroompanama.com/business/korean-consortium-wins-2057-billion-metro-contract-with-4500-jobs-1

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Korean companies beat legal challenge to $2.5bn Panama metro win

5 February 2020 | By GCR Staff | 0 Comments

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A joint venture between Korean contractors Hyundai E&C and Posco E&C has been confirmed as the preferred bidder for a $2.5bn private-finance contract to build Line 3 of Panama’s metro system.

The HPH Consortium was confirmed as the winner after Panama’s General Directorate of Public Procurement dismissed complaints from the two other bidders over the way bids were evaluated.

The Korean team was originally awarded the work in November, a decision that was suspended by the directorate in December while the evaluation process was investigated.  

The complaints were lodged by other bidders including the China Railway Group and the ACPC Consortium, made up of Acciona Construcción of Spain and the Power Construction Corporation of China.

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The masterplan for Panama City’s nine-line metro (Panama Metro)

The losing teams are able to lodge an appeal at the Administrative Court of Public Contracts, which would require them to deposit a bond of 15% of the value of the contract.

Line 3 of the metro is to be a 25km monorail system running east to west. When complete in 2022, the line will carry commuters from the province of West Panama over the Panama Canal to Panama City in less than 45 minutes. The journey can take up to three hours now, owing to traffic congestion.

Funding for the scheme will be provided by the Japanese Bank for International Cooperation on a 20-year term.

Top image: Construction work under way on Panama City’s Line 2 (Panama Metro)

 

http://www.globalconstructionreview.com/news/korean-companies-beat-legal-challenge-25bn-panama-/

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Metro Line 3 will travel through Canal tunnel

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Posted 06/02/2020

The third line of Panama Metro leading  to Panama West will pass the Panama Canal channel through a tunnel Public Works Minister  Rafael Sabonge confirmed on Wednesday, June 5  

The construction of the tunnel would not be included in $2.507 billion contract that Panama Metro awarded on February 4 to the Korean Joint Venture consortium HPH.

“There are previous studies conducted by the company Nippon Koei,  the project manager, on the feasibility of a tunnel. There is even a preliminary cost, but it will be up to the Metro to tender its construction,” said Sabonge.

In addition, the Metro hired in January the company LCC Ingeniería, for $295 961, to take samples of the composition of the seabed of the Panama Canal channel, as previous studies determined the presence of rock formations and basalt.

According to the technical report that the Metro used to justify the hiring of LCC Ingeniería, the tunnel that would connect Panama City with Panama Oeste would have an external diameter of 13 meters and start at the Albrook station and end at the Panama Pacifico station.

The company will conduct 14 surveys to determine the composition of the soil and must store and classify each sample separately.

The four proposals that the Metro received were based on the fact that the third line would use the structure of the fourth bridge to cross the Canal but the Cortizo government chose to separate both projects to reduce the cost of the bridge, which It reaches $1,518 billion dollars and will be built by the Panama Fourth Bridge Consortium, formed by the Chinese companies Communications Construction Company Ltd., and China Harbor Engineering Company Ltd.

According to Sabonge, the decision to separate the two projects, which are estimated to generate more than 6,000  jobs, was made to reduce the risk of delay in one of the two constructions.

If no challenge is filed, the Metro would be delivering the order to proceed at the end of March.

 

https://www.newsroompanama.com/business/metro-line-3-will-travel-through-canal-tunnel

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Metro Line 3  tunnel will be 50 meters under Canal

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Posted 14/02/2020

The four km tunnel to carry  Metro Line 3  under the Panama Canal will have a depth greater than 50 meters.

The project is feasible because on line 1, depths greater than 35 meters were reached said Agustín Arias,    Director of Projects and Planning of  the Panama.Metro.

On Thursday, February 13 the Panama Metro and the Ministry of Public Works confirmed that line 3 of the Metro, which will be built to Panama West, and the fourth bridge over the Panama Canal will be separate projects.

It is unknown how much the tunnel investment would amount to if it were contracted through a new tender or if it would be requested from the consortium that won the construction of Metro line 3.

The tunnel will have a diameter of 13 meters and will reduce the extension of line 3 by 400 linear meters.

 

https://www.newsroompanama.com/business/metro-line-3-tunnel-will-be-50-meters-under-canal

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Construcción de la línea 3 del Metro comenzaría a inicios del próximo año

Alex E. Hernández V.
24 ago 2020 - 12:00 AM

https://www.prensa.com/impresa/economia/construccion-de-la-linea-3-del-metro-comenzaria-a-inicios-del-proximo-ano/

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Construction of Panama Metro  line 3 begins early 2021

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Posted 24/08/2020

The construction of the 25-kilometer third line of the Panama Metro to the province of Panamá Oeste will begin in early 2021.

The information was passed by the Panama Metro to insurance companies interested in participating in the bidding for the $7.5 billion insurance policy to cover the works related to the project.

Twelve companies, including local insurers and international reinsurance firms, participated in the homologation meeting. In the list of participants are Seguro Ancón, Mapfre Panamá, Assa Compañía de Seguros, SA, Carpenter Marsh FAC, RKH Specialty Miami, Chubb Latam, Specialty RE, BMS Group, Transnational RE Inc, Seguros SURA, Nacional de Seguros and Internacional de Seguros .

During the approval of the specifications, the interested companies asked if the work involved the construction of tunnels, and  Metro representatives confirmed that it did, but did not provide details or the company that would build the structure that will pass below the Panama Canal.

The Government changed the original design of the third line in order to reduce the construction cost of the fourth bridge, since the third line would have used the structure to cross the Canal.

Since the award of the third line to the Korean consortium HPH Joint, which offered $2.507 million dollars, the Metro has worked on the design and feasibility of the tunnel that would be built at a depth of 50 meters below the Canal

The tender to contract the insurance policy has a reference price of $7.5 million and will cover the construction of civil works, auxiliary installations of the line and stations, supply, and installation of the integral system that includes rolling stock.

In the case of damages caused by earthquakes, hurricanes, landslides, subsidence, and other catastrophes, the compensation contemplated in the policy would be $2.507 million.

 

https://www.newsroompanama.com/business/construction-of-panama-metro-line-3-begins-early-2021

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Contract inked for Metro Line 3

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Posted 29/10/2020

The contract for the design and construction of  Metro Line 3 includes rolling stock was signed this Thursday, October 29, by the Héctor Ortega director of Metro  Panamá, SA, and the legal representative of the HPH Joint Venture Consortium made up of the Korean companies Hyundai Engineering & Construction and Posco E&C, Daniel (Goo Hyuk) Chung.

The document will be sent to the Comptroller General for endorsement and subsequent delivery of the order to proceed. The contractor has 54 months to build the line

The contract was also signed with the nominated sub-contractor (Hitachi and Mitsubishi) in charge of supplying the rolling stock (monorail) and the integrated operations system.

The project will connect the province of Panama Oeste with Metro Line 1 at the Albrook station, reducing the average travel time in rush hour, from 90 to 45 minutes.

"This work, during its construction phase, will have a social and economic impact for Panama Oeste, since it will generate more than 5,000 jobs, and it will also benefit more than 500,000 inhabitants of this province," said Ortega.

Line 3, in its first stage, 24.5 kilometers from Albrook to Ciudad del Futuro will have stations and will pass under the Panama Canal through a 4-kilometer.tunnel.

The Panama Metro has the compatibility permit from the Panama Canal Authority (ACP) to execute and operate the crossing under the Canal.

It is estimated that this line will handle 20.000 passengers during peak hours, with a four-minute interval between trains.

 

https://www.newsroompanama.com/business/contract-inked-for-metro-line-3

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Order to proceed on Metro 3 to Arraijan 

Posted 20/02/2021

The order to proceed with the construction of Metro line 3 which will link the Albrook sector and the City of the Future, in Arraiján will be issued on Monday, February 22.

The delivery of this act to the HPH Joint Venture consortium , made up of Hyundai Engineering & Construction Co., Ltd, and Posco Engineering Construction, is part of the Government plan to try to boost the construction industry in the midst of the pandemic.

Last week, the Comptroller General  endorsed the contract $2.844 billion contract which includes the $2.507 billion proposed by Korean companies and the cost of financing the work.

Unlike the first two lines of the Metro, the project to Panama Oeste will use the monorail system, with a 45-minute journey through 13 elevated stations and 1 underground in the Balboa sector.

A year ago, the government discarded part of the original design of the third line, which contemplated that the monorail would use the central lanes of the fourth bridge to cross the channel of the interoceanic highway. It will now travel through a tunnel 50 feet below the canal.

 

https://www.newsroompanama.com/business/order-to-proceed-on-metro-3-to-arraijan

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Metro Line Three 5000 jobs fillip to economy

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Posted 22/02/2021

The  third line of Panama  Metro will serve over half a million  people and the  near $3 billion investment will make  an “enormous contribution”  to the economic recovery of the country with the creation of 5,000 jobs, direct and indirect  said

The work will connect the provinces of Panama and Panama Oeste, will be done by the HPH Joint Venture consortium, made up of Hyundai Engineering & Construction Co., Ltd, and Posco Engineering Construction.

Ortega said that the provision of facilities for exchanges with other modes of transport is contemplated: buses, taxis, bicycles, and private vehicles, as well as generous spaces for pedestrian circulation.

He added that, in order to reduce the use of private cars for daily trips, parking areas will be included in at least 3 stations: Ciudad del Futuro, Nuevo Chorrillo, and Vista Alegre.

In the Panama Pacifico-Albrook section, the two projected stations are Balboa and Albrook; the latter will be integrated into the current Albrook line 1 station, "which will allow a fast and safe interchange of lines 3 and 1".

"From the work that begins today, we hope to begin to see fruit in a little more than four years," he said.

Last week, the Comptroller General endorsed the contract for $2.844 billion.

Unlike the first two lines of the Metro, the project to Panama Oeste will use the monorail system, with a 45-minute journey through 13 elevated stations and one underground in the Balboa sector.

 

https://www.newsroompanama.com/business/metro-line-three-5000-jobs-fillip-to-economy

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Construction Started on Panama Metro Line 3

 By Panama Eric

(Railjournal.com) CONSTRUCTION of Panama Metro’s $US 2.8bn Line 3 monorail project has started, following a ground breaking ceremony on February 22 attended by president Mr Laurentino Cortizo Cohen and Panama Metro general director, Mr Héctor Ortega. 

Work on the 24.5km project is expected to take approximately four years to complete. Its launch follows the approval of contracts and financing for the project earlier this month by Panama’s comptroller general, Mr Gerardo Solís. 

Construction will be carried out by the HPH Consortium, comprising Hyundai Engineering and Construction and Posco E&C, under a $US 2.06bn design, construction and financing contract awarded in February 2020. 

Phase 1 will run from Albrook to Ciudad del Futuro, carrying approximately 160,000 passengers. The line will reduce average travel times during peak hours from 1h 30min to 45 minutes and will have 14 stations. A potential 34km Phase 2 extension to La Chorrera is also planned. 

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The line will be mostly elevated and will have 14 stations.

The line is primarily elevated, but also includes approximately 5.3km of tunnels with a maximum depth of around 64m. 

When the line opens in 2025, it will be operated using a fleet of 28 six-car trains equipped with regenerative braking, supplied by a consortium of Hitachi, Hitachi Rail STS and Mitsubishi under a $US 883m contract awarded in October 2020. The contract also covers the provision of electrification, signalling and communications and control systems for the line.  

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The trains will be supplied by a consortium of Hitachi, Hitachi Rail STS and Mitsubishi.

The project is expected to strengthen the economy of the province of Panama Oeste, generating more than 5000 direct and indirect jobs and benefiting more than 500,000 people in the region.  

“Improving mobility in Panama City is one of the main commitments that the Panama Metro has,” Ortega says. “Even in the midst of the current health crisis and its economic consequences, we continue to contribute to the economic growth of the country with the launch of Line 3.” 

 

https://www.thepanamablog.com/construction-started-on-panama-metro-line-3/

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Only one company bid on Metro 3 study

metro.jpg

Posted 22/03/2021

e company formalized its interest in carrying out the geophysical studies required by the Panama Metro to build the underground section of line 3  that will connect Albrook with the City of the Future sector in the province of Panama Oeste.

The call had attracted three companies, but in the end only the Consortium Geofísica Túnel L3 , made up of Monitoriza, SA and Geotécnia Hidrogeología y Medio Ambiente SLP submitted a proposal for $163,177, an amount lower than the $181,951 projected by  Panama Metro.

In the preliminary analysis, the company met the minimum requirements set forth in the tender specifications and now the evaluation committee has to determine whether it has the technical experience and financial capacity to carry out the studies.

The company will have to drill at depths ranging from 10 meters to 65 meters, in the case of the area where the tunnel will pass under the channel of the Panama Canal.

The underground section, which will begin after the Albrook station and end about 300 meters before the Panama Pacifico station, will have a distance of 5.3 kilometers.

Once the contract is awarded, the company would have 5 months to carry out the studies.

A few days ago, the Panama Metro awarded Environmental Consulting & Services (EcosPanamá) the comprehensive environmental audit of the construction of line 3 for an amount of $185,000.

 

https://www.newsroompanama.com/business/only-one-company-bid-on-metro-3-study

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Design of tunnel under canal will cost $9.8 million

Posted 03/07/2021

If the General Directorate of Public Procurement (DGCP) endorses the report of the evaluation commission, the cost of the design and basic details of the tunnel on line 3 of the Metro, which will be built below the Panama Canal will  cost $9.8 million.

The Tunnel of the Americas Consortium made up of the companies Técnica y Proyectos, SA (Typsa) and Louis Berger LAC, obtained the best rating within the review of the 4 proposals received by the Panama Metro.

The group obtained a rating of 930 points, out of a total of 1,000, in addition to presenting the cheapest offer. The group's offer is $3.2 million below the estimated price by the Metro.

Originally, the tunnel was not part of the design of Line 3 that will be built by the Korean consortium HPH Joint Venture, made up of the companies Hyundai Engineering & Construction Co., Ltd. and Posco Engineering Construction, at a cost of $2.844 billion.

Next October, the placement of the piles that will support the structure of the viaduct through which the monorail will pass must begin.

It is estimated that line 3 will benefit more than 500,00 residents of Panama Oeste.

By opting for the tunnel, Laurentino Cortizo's administration discarded the original design that contemplated the passage of the monorail through the central lanes of the fourth bridge, a project that has remained in limbo because it has no assigned budget, despite the fact that it was awarded in 2018 reports La Prensa.

In the speech presented to the National Assembly last Thursday, President Cortizo indicated that the construction of the tunnel was part of the special projects that will be carried out over the next few years

Metro estimates indicate that the construction of the underground section, which will extend for more than five kilometers, would have an estimated cost of $360 million. The mass transit company decided to bid separately for the design and construction of the tunnel to obtain better offers.

The diameter of the tunnel will be 13 meters and it will have a pumping and drainage station, and it will be divided in half to simulate the effect that there are two tunnels within the same structure.

According to the data provided by the Metro to the companies that competed to design the tunnel, the work will have a maximum depth of 65 meters.

To understand the magnitude of the project, the greatest depth reached by the tunnel on line 1 was 35 meters.

Construction of the underground section is expected to take about 64 months (5 years and 3 months). To this time must be added the months it will take for the Metro to put out to tender the design and construction of the underground section. At the moment, the most encouraging estimate is that there is a difference of more than 24 months between the construction of the tunnel and the works on line 3, which has been carried out by HPH Joint Venture since February.

 

https://www.newsroompanama.com/business/design-of-tunnel-under-canal-will-cost-98-million

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US firm with corruption record gets $9.8 million Panama contract

Posted 20/08/2021

Louis Berger the US firm that has been awarded a $9.8 million contract to design the tunnel that will carry  Metro Line 3 under the Panama Canal has been convicted of  corruption, paying bribes and violations of labor rights in the United States, India, Spain, Colombia, Iraq, and Afghanistan reports La Prensa.

The contract is awarded 6 months after the act was published in PanamáCompras and after a series of claims presented by the competitors of the Tunnel of the Americas Consortium.

The Panama Metro reported that the process was carried out under transparency guidelines and that all legal terms were met.

The rejection caused some of the acts of corruption that company executives committed in the past to be disclosed on social networks.

The first corruption headlines involving Louis Berger executives date back to 2010 when two of its top executives pleaded guilty to raising the prices of jobs they did in Iraq and Afghanistan on behalf of USAID.

Then, in 2015, the United States Department of Justice filed a lawsuit against the firm for paying bribes to Indian officials to obtain water supply contracts in the cities of Goa and Guwahati.

Four years later Louis Berger came to the fore after the  US National Transportation Safety Board linked it to the collapse of the pedestrian bridge that was under construction in Miami that caused the death of six people.

In its investigation, the board determined that Louis Berger "was not qualified by the Florida Department of Transportation to conduct a construction review, and said that state agency should have verified Louis Berger's qualifications."

Louis Berger has a history in Panama. In 2002, it was hired by the Ministry of Public Works to remove the war material that was detected on the land where the accesses to the centennial bridge would be built, a project where it also participated with the design of the structure.

Between 2008 and 2009, the Panama Canal Authority gave it the task of disseminating the objectives and scope of the construction of the third set of locks to the residents of the communities surrounding Lake Gatún, province of Colón.

In 2011, the design of the Atlantic Bridge was awarded along with China Communications Construction Company.

In 2019, the name of the company made the news when it was awarded the contract to carry out the Environmental Impact Study of the project to recover the beaches in the bay of Panama, a failed project, criticized by civil society.

In  June the company was disqualified from the tender carried out by the Metro to contract the studies for the construction of the metrocable (cable car) in the San Miguelito district. Despite obtaining the best evaluation, the evaluation committee disqualified Louis Berger when a conflict of interest was detected with one of the experts who would participate in the project.

The Metro canceled the tender after all the participants were disqualified.

 

https://www.newsroompanama.com/business/us-firm-with-corruption-record-gets-98-million-panama-contract

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Work begins on Metro Line 3

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Posted 05/10/2021

The construction phase of the piles that will support Metro line 3, which will connect the provinces of Panama and Panama Oeste began on Tuesday, October 5.

According to a Metro report, a total of 1,450 piles are required along the 24.5 kilometers of the work, which goes from the Panama Pacifico sector to Ciudad del Futuro.

"The piloting works will begin on two fronts: on the viaduct corresponding to the San Bernardino area and the Ciudad del Futuro Station, the last station on line 3," said a Metro statement.

The construction of a pile takes three to four days and that this stage will advance in accordance with the work execution schedule. To this end, road adjustments, liberation of areas and relocation of public services will be made.

On the Ciudad del Futuro Station, it is specified that it will be located in front of the Pan-American highway, at the entrance of this community and two accesses will be built to meet the demand.

“Currently, at this point the plan for the rescue and relocation of the flora and fauna, as well as the removal of the vegetation the latter in areas necessary for the development of the work. Additionally, the earth movement has begun ”, it was reported.

The HPH, Joint Venture consortium, made up of the companies Hyundai Engineering & Construction Co., Ltd, and Posco Engineering Construction, received on February 22 the order to proceed to execute the work that will cost $ 2.844 billion and the works will have a duration of 52 months.

To connect the two provinces, a tunnel will be built that will cross the Panama Canal whose construction has not yet been tendered.

 

https://www.newsroompanama.com/business/work-begins-on-metro-line-3

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