Panama’s turnkey contracts worth US$4.51bn signed since 2009

Turnkey contracts, including major transport projects, worth US$4.51 billion (EUR 3.28bn) have been signed under the current government administration in Panama since its election in 2009, it has been reported.

The value of the turnkey contracts signed during President Ricardo Martinelli’s time as head of state includes US$1.09 billion allocated to five contracts to widen a 185km road section between Santiago de Veraguas and David to four lanes. The most expensive contract, worth US$ 1.64 billion, is for a complete overhaul of the existing traffic and roads in Panama City. Phase three of the coastal road was awarded to Norberto 1305 Odebrecht at a cost of US$782 million, it has been disclosed. Two contracts for a new children's hospital and a cancer treatment hospital will also be awarded as turnkey projects. And the contract for a second Metro line in Panama City may also be awarded in the same manner. Some critics argue that this would leave a huge bill for the next administration to pick up, following the scheduled May 2014 national election, although Martinelli’s government insists that the coming administrations will effectively have more resources to meet such commitments.