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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.



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


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.



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

5 February 2020 | By GCR Staff | 0 Comments


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.


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)



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Metro Line 3 will travel through Canal tunnel


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.



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Metro Line 3  tunnel will be 50 meters under Canal


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.



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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


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Construction of Panama Metro  line 3 begins early 2021


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.



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Contract inked for Metro Line 3


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.



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