PANACPA CANAL NEWS

PANAMA CANAL NEWS

- pi.ember 2009

ACP awards largest expansion contract

In July, the Panama Canal Authority (ACP) marked an important
Expansion Program milestone with the awarding of the contract for
the design and construction of the new set of locks to Grupo Unidos
por el Canal. The consortium, formed by Sacyr Vallehermoso, S.A.
from Spain; Impregilo S.p.A. from Italy; Jan de Nul from Belgium;
and Constructora Urbana, S.A. (CUSA) from Panama, obtained the
highest combined technical and price proposal scores among the
pre-qualified consortia that submitted bids for the project. Moreover,
the base price of US$3,118,880,001.00 offered by Grupo Unidos
por el Canal did not exceed the ACP's owner's allocated price of
US$3,481,000,000.00. This contract represents the largest and
most critical in the US$5.25 billion Expansion Program.

The ACP issued a Notice to Commence work on the project August
18 after receipt of the consortium's US$400 million performance
bond and US$50 million payment bond. Based on the date of the
Notice to Commence, the consortium has 1,883 days to complete
the job.

The Canal's expansion continues to move
ahead on time and on budget.

A fair, rigorous and transparent contracting
process

The ACP conducted an airtight process for the selection of the
contractor for the design and construction of the new locks, setting
a new standard in contracting fairness, rigorousness and
transparency.

The timeline, which started August 2007, included the
pre-qualification of potential bidders, numerous meetings with the
pre-qualified consortia to clarify and improve contract requirements
and visits to the construction site. On March 3, 2009 the date of
receipt of the proposals -three of the four pre-qualified consortia
submitted price and technical proposals. The envelopes containing
the price proposals, including the ACP's price proposal, were signed
by the Notary Public, the ACP's Contracting Officer, and the ACP's
Inspector General. These envelopes then were placed in a box and
secured in the vault of the Banco Nacional de Panama, where they
remained unopened until the technical evaluation was complete.

In accordance with the ACP's acquisition regulations, a Technical
Evaluation Board (TEB), formed by 15 ACP engineers from a wide
array of fields of expertise, was designated to evaluate the technical
proposals. The TEB reviewed, analyzed, and scored the different
technical aspects of the proposals. To support the task assigned to
the TEB, a group of more than 50 ACP and international experts was
summoned to provide technical advice.

Everyone involved in the process signed confidentiality agreements
and conflict of interest disclosure documents. External auditor,
Deloitte, reviewed the entire evaluation process. On July 8, 2009 a
second public ceremony was held during which the Contracting
Officer disclosed the consortia's technical scores and revealed the
price proposals for the first time. As established in the contracting
procedures, technical proposals were weighted 55 percent of the
overall score and price proposals were weighted 45 percent. After
verification of compliance with the contracting requirements, the ACP
awarded the contract to Grupo Unidos por el Canal, which presented
the "best value" proposal, on July 15, 2009.

As the Canal's historic expansion progresses, the ACP continues to
keep the industry apprised of the latest developments and insight on
what is up ahead. On August 13, 2009 during the panel session
entitled "Moving the World's Cargo", at the 12th Annual
Transportation & Infrastructure Summit hosted by the City of Irving,
Texas, ACP Administrator/CEO Alberto Aleman Zubieta briefed the
audience on the ACP's innovative Expansion Program contracting
process. This contracting process has received praise from the
maritime industry and other international organizations for its proven
effectiveness in awarding contracts for the waterway's expansion.

Progress on the new access channel

Memorandum of Understanding with Port
Everglades

The Panama Canal celebrates
its 95th anniversary

ACP Administrador/CEO Alberto Alem&n Zubieta and
Port Everglades Director Phillip C. Allen.

ESTIMATED
DATES DAYS MIRAFLORES PEDRO MIGUEL GATUN TRANSIT CAPACITY STATUS

Oct. 14-16, 2009 2
Sept. 8-17, 2010 10

East Lane

26-28 Tentative

Centerwall Culvert 29-33 Tentative

Panama Canal Authority Tel. (507) 272-7961
Your comments and suggestions are very important to us. If you need additional Market Research & Analysis Office (ME) Fax (507) 272-1416
copies mailed to other officials within your corporation, please contact us at the PO. BOX 526725 Miami FL. 33152-6725 e-mail: customerelations@pancanal.com
address indicated in the next box.
SEE THIS NEWSLETTER ON THE ACP WEB SITE AT: www.pancanal.com
(then click on Virtual Newsrooms)