Arguing reasons of force majeure, the construction company Fomento de Construcciones y Contratas requested the Panamanian Social Security Fund to unilaterally cancel the contract for the construction of the hospital complex.

This mega-project has been delayed for several years. Initially the contract for the design, construction and financing of the Hospital City was awarded in 2011 to the business group Fomento de Construcciones y Contratas S.A. (FCC) which submitted a proposal amounting to $587 million. However, the work has faced dozens of irregularities and so far remains unfinished.

After multiple delays and irregularities pointed out, authorities of the Social Security Fund (CSS) informed that on August 27, 2020 they received a letter from FCC with the request to dilute the contract.

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For Roberto Ruiz Diaz, former Director of Public Contracting (2001-2003), this context “… gives (FCC) options to claim damages, lost profits and any other, because unilaterally the contract is being broken’. The best way is the dissolution of this contractual relationship through negotiation, or the assignment of the contract by the company.”

Ruiz Diaz explained to Laestrella.com.pa that “… just as the company has failed to comply, the State has also failed to comply with the measure of suspension of the work during the past administration of Juan Carlos Varela.”

The SSC will have to give an answer to the company about its request. The authorities have anticipated that their decision will be based on the national interest.

Source: laestrella.com.pa

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