Infrastructure works requiring investments of more than US$2.7bn remain on hold in Panama, because the health ministry (Minsa) refuses to greenlight projects that the public works ministry (MOP) deems important.
The construction sector, including production of cement and other materials, had to halt activity on March 24 to contain the spread of the coronavirus. On the same day, the president granted Minsa the authority to determine which industries could restart and when during the pandemic.
On May 12 the MOP sent Minsa a list with 29 projects that should restart as priority works during stage two of the post-pandemic reboot starting June 1. But the health ministry approved only 11 of these and only after pressure from public works minister Rafael Sabonge, who said some works were crucial to prevent floods and landslides during the rainy season, La Estrella de Panamá reported.
In a letter to President Laurentino Cortizo, construction chamber president Jorge Lara urged the head of state to clarify the term “priority projects,” the newspaper wrote.
“Our companies have large financial commitments to banks, obligations that subcontractors and suppliers fulfill on a daily basis, demanding payment of what is owed,” Lara wrote, adding that uncertainty among investors was growing.
Nevertheless, the public works ministry could persuade Minsa to allow the restart of works for the US$25mn bridge to link Panama and Costa Rica on April 17, among other developments.
The MOP still expects to spend 70% of the planned amount this year, according to local daily Panamá América. Construction in the country was on standby for over two months.
Reactivating all 29 projects would create up to 4,000 jobs, public works undersecretary Librada Jisell De Frías told local news outlets.
The 11 that Minsa approved are:
- Arraiján-La Chorrera highway
- Concepción-Cuesta Piedra-Volcán highway, Chiriquí province
- Rehabilitation of the Pedasí-Los Asientos highway
- Rehabilitation of roads in Chitré district
- Rehabilitation of the CPA-El Jaguito-Calobre highway
- Almirante-Changinola highway
- Valle Riscó-Punta Peña de Riscó, Valle Riscó-Oriente and Valle Riscó-Nance roads in Bocas del Toro province
- Besikó district roads
- Rehabilitation of the San Andrés-Santa Cruz Dominical-Caisán-Monte Lirio and Circunvalación highway, Chiriquí province
- Rehabilitation of roads in La Pintada, Coclé province
- Rehabilitation of roads in Penonomé district
Works that remain suspended include the fourth bridge over the Panama Canal, the widening to six lanes of the La Chorrera-Santa Cruz stretch of the Las Playas corridor, the Panamá Norte corridor and the expansion of Avenida Ricardo J. Alfaro.
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