Gobierno retira apoyo al puerto en Isla Margarita tras años de irregularidades; estos son los actuales concesionarios | La Prensa Panamá

Panama Withdraws Support for Isla Margarita Port Project

The Panamanian government, under President José Raúl Mulino, has decided to withdraw its support for a port project in Isla Margarita, Colón. The project, developed by Panama Colon Container Port Inc. (PCCP) and United Crown Construction Inc., has faced numerous issues, including missed deadlines, payment defaults, and disputes among partners.

History of Issues and Delays

The concession contract, signed in 2013, involved the filling of 16 hectares of seabed. The project has been plagued with problems since its inception. The Autoridad Marítima de Panamá (AMP) issued repeated warnings regarding outstanding balances, incomplete modification requests, expired bonds, and an outdated work schedule. In 2017, PCCP requested an addendum due to conflicts with adjacent property owners. An audit by the Comptroller General's Office declared a breach of contract, leading to an order to terminate the contract in 2021.

New Investment and Addendum

Despite the order to terminate, a new investor, Notarc Management Group, acquired PCCP's shares and presented a rescue plan including a $1 billion investment. This led to the signing of addendums, extending the concession until 2042 and increasing the concession fees for the state. This was approved by the Assembly and sanctioned by President Cortizo.

Government's Decision to Revoke Support

President Mulino stated that the government will not continue supporting the project, citing a poorly awarded contract, payment defaults, and a lack of government approval. A new international tender will be called.

Key Points:

• Years of delays and irregularities led to government withdrawal of support.
• New investment attempted to salvage the project but failed to gain sustained government backing.
• New international bidding for the project is planned.