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Thursday, January 21, 2010
Today's News Headlines
* Longitudinal del Norte stretch to start construction in Feb - El Salvador
* MOP to award US$8.5mn road tender in Feb - Panama
* Companies ask authorities to thoroughly review Málaga port project - Colombia
* IDB approves US$32mn for tourism-related infrastructure projects - Chile
* Ports to be expanded, improved, Santos to triple - Brito - Brazil
* CAF approves US$200mn for Interoceánico Sur - Peru
* ABC signs contract for Santa Bárbara-Quiquibey highway - Bolivia
* Paraguarí-Guairá highway to be completed in March - Paraguay
* National, international firms attend meeting on metro - Panama
* New port regulations provoke mixed reactions - Brazil
* Atrex to build new cargo handling facility in Santiago airport - Chile
* Japan reiterates interest in financing metro - Panama
* São Paulo to invest BB's payroll contract payment in metro expansion - Brazil
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* Longitudinal del Norte stretch to start construction in Feb - El Salvador
Construction on a 30km stretch of El Salvador's Longitudinal del Norte highway will start in February, the deputy director of infrastructure at Fomilenio, Carlos Duque, told BNamericas.
The tender is scheduled to be awarded on January 24.
Fomilenio is the El Salvadorian chapter of the US Millennium Challenge Corporation (MCC) which is donating US$234mn to build the complete highway.
A total of six firms presented bids in the tender. The lowest offer was made by Costa Rican construction firm Meco with US$23.1mn, with the highest offer presented by Constructora Santa Fe de Centroamerica (US$31.0mn). The other participating firms were Topsal (US$30.4mn); Swiss group SBI International Holdings (US$28.4mn); the Central American branch of Spanish FCC (US$26.4mn); and the El Salvadorean branch of Italian Astaldi (US$27.2mn).
The evaluation process is already finished. However, the decision has to be sent to MCC headquarters in Washington before the project can be officially awarded, according to Fomilenio.
The 30.4km stretch, known as section 6, runs between Barrios and Osicala in San Miguel department and from Delicias de Concepción to Cacaopera, both in Morazán department.
The awardee should complete construction within 660 days from the day works start.
The first 42km of the Longitudinal del Norte highway is scheduled to be ready by November, Fomilenio told BNamericas in a recent interview.
The overall initiative involves 176km of highways that connect northern El Salvador with the rest of the country. A third of El Salvador's 5.7mn people will benefit from the construction of the highway, according to Duque.
MCC approved a US$461mn donation for El Salvador in June 2006 to reduce poverty in the northern part of the country. MCC is a US government agency that provides aid to developing countries.
By Indiana Corrales
Business News Americas
* MOP to award US$8.5mn road tender in Feb - Panama
Panama's public works ministry (MOP) will award a road rehabilitation tender in Panama City in February, a MOP official told BNamericas.
The tender had a reference budget of US$8.47mn.
"We expect to award the tender in 15-20 days," the official said, adding that the offers presented by interested firms were opened on January 19.
Panamanian construction firm Transcaribe Trading presented the lowest offer of US$8.45mn. The highest bid was made by the Central American branch of Spanish FCC with US$8.79mn. Local construction firm Constructora Urbana (US$8.53) and Costa Rican Meco (US$8.70) also presented offers.
The roadworks will be carried out in the municipalities of Las Mañanitas, Pedregal, San Francisco, Juan Díaz, Tocumen, Bella Vista, Bethania, Pacora, 24 de Diciembre, San Martín and Pueblo Nuevo, all located in Panamá City's metropolitan area.
Works include paving, construction of sidewalks and general maintenance works. The awardee will have 240 days to conclude the project.
By Indiana Corrales
Business News Americas
* Companies ask authorities to thoroughly review Málaga port project - Colombia
Colombian department Valle del Cauca's industrial sector is asking the environment ministry to take as long as needed to evaluate the construction of a port in the bay of Málaga, local paper La República reported.
Málaga bay is known for its diverse marine wildlife and its surrounding area is home to 1,400 species of animals and plants.
The environment ministry has been close to issuing a resolution forbidding the port's construction, said one of the project's investors, Carlos Arcesio Paz. For this reason, investors have requested the ministry to take more time and study the initiative thoroughly.
The project involves the construction, maintenance and operation of a port in Málaga bay, next to a naval base, according to information provided by the transport ministry (Mintransporte). The facility would have a 17-21m draft and the capacity to handle 12Mt of cargo per year.
The first stage of development would involve the construction of a container terminal. Then, a multipurpose cargo handling terminal would be built.
A special committee has been formed to discuss the project, which might have to undergo a number of changes to become more eco-friendly and guarantee the area's ecological sustainability, said the president of Cali's chamber of commerce, Julián Domínguez.
"We believe, as has happened in other parts of the world, that compatibility between the environment and development is possible, allowing the port to be built with the necessary restrictions," Domínguez said.
There is a contradiction in the evaluation of this issue, according to Paz, because a naval base operates in the area. If the state followed the ministry's view, the first thing that should be done is to remove that base, said Paz.
WORKS IN BUENAVENTURA
In the meantime, the government will dredge the bay surrounding the department's Buenaventura port to reach a depth of 13.5m. However, the draft must increase to 15m to handle the ships that will travel across the expanded Panama Canal from 2014 on.
The current dredging project involves the removal of about 6Mm3 of material, and will cost US$35-40mn.
By Business News Americas staff reporters
* IDB approves US$32mn for tourism-related infrastructure projects - Chile
IDB has approved a US$31.6mn loan to boost Chile's tourism industry by financing infrastructure initiatives, the bank reported in a release.
Resources will be allocated to highway improvements; implementation of interpretive and scenic trails; visitor centers; a network of shelters and campgrounds; small marinas; infrastructure and equipment for trekking, horse riding and cycling; and improvements in access and facilities at protected areas.
The loan will also contribute to reduce the sector's seasonality and boost geographic decentralization; strengthen public tourism management and promote higher levels of competitiveness among local tourism entrepreneurs.
The initiative aims to help raise tourists' average stay from 0.56 days to 3.66 days and the daily spending average from US$53 to US$190 by 2021.
The program will promote the regions of Norte Grande, the south, and the Patagonia and Tierra del Fuego area.
The loan is for 15 years, with a 5.5-year grace period, at a Libor-based interest rate. Chile will provide US$19mn in counterpart funds.
By Business News Americas staff reporters
* Ports to be expanded, improved, Santos to triple - Brito - Brazil
Container handling at São Paulo state's Santos port should triple by 2024, according to special ports department (SEP) head Pedro Brito.
"We have a special plan for Santos port over the next 15 years," Brito was quoted as saying by government news service Agência Brasil. TEU handling at the port is expected to increase from 3mn to 9mn TEUs a year by 2024, according to the SEP head.
The port sector in general will receive 3.2bn reais (US$1.79bn) from the country's growth acceleration plan (PAC) over the next few years.
"Ports are necessary to maintain Brazilian competitiveness," said Brito, who was speaking at the inauguration of terminal 4 at Santos which will be operated by Santos Brasil.
Port capacity throughout the country must be expanded and improved. "The port sector is a priority because it directly affects the performance of the economy," Brito said.
By Business News Americas staff reporters
* CAF approves US$200mn for Interoceánico Sur - Peru
The Andean Development Corporation (CAF) has approved a loan of US$200mn to support construction of Peru's Interoceánico Sur highway.
The loan will be used to finance the final phase of stretches 2, 3 and 4 of the highway, which are scheduled for completion by end-2011, according to a press release issued by CAF.
Stretch 2 runs from Urcos, in Cuzco department, to Puente Inambari in Madre de Dios department. Stretch 3 runs between Puente Inambari and Iñapari, on the border with Brazil and Bolivia, and stretch 4 connects Puente Inambari to the Azángaro settlement, near Juliaca city in Puno department.
The 2,600km Interoceánico Sur highway includes stretches in regions Madre de Dios, Cuzco, Apurímac, Ayacucho, Puno, Arequipa, Moquegua and Tacna.
The highway will connect ports in San Juan de Marcona in Ica region, Ilo in Moquegua region, and Matarani in Arequipa region with southern cities Arequipa, Puno and Cuzco, and will also connect with Brazil and Bolivia.
"The corridor is expected to promote the flow of Peruvian trade with the central-western part of Brazil and the north of Bolivia, towards the Pacific basin," said CAF president Enrique García.
By Business News Americas staff reporters
* ABC signs contract for Santa Bárbara-Quiquibey highway - Bolivia
Bolivian highway administrator ABC has signed a contract with Argentine-Bolivian consortium AR-BOL for the design, construction and paving of the Santa Bárbara-Caranavi-Quiquibey highway, government news agency ABI reported.
The 184km highway will cost US$257mn, of which 67% will be provided by the Venezuelan government, with the remainder funded by the national and La Paz governments.
AR-BOL was awarded the contract on November 10 last year, after presenting the only bid in an international tender.
The consortium will have 4.5 years to complete the works. The turnkey project includes quality control and maintenance for five years after construction of the highway has been completed.
The highway is part of the Corredor Amazónico project, which aims to connect La Paz, Beni and Pando departments.
By Business News Americas staff reporters
* Paraguarí-Guairá highway to be completed in March - Paraguay
Construction work on a highway connecting Paraguay's Paraguarí and Guairá departments is expected to be completed in March this year, the public works and communications ministry (MOPC) reported.
The work involves building a new paved stretch connecting the Ruta 1 highway near Paraguarí city with Ruta 8 in Guairá department capital Villarrica.
The project will cost some US$35mn, and is being financed by the Japan Bank for International Cooperation (JBIC).
Work began in August 2004 and was expected to be completed in 36 months, however, the process was slowed down due to difficult weather conditions, among other factors, the report said.
By Business News Americas staff reporters
* National, international firms attend meeting on metro - Panama
Numerous national and international firms interested in the design and construction of metro line 1 in capital Panama City went to a meeting held by authorities on January 19, the presidential website reported.
Firms from Italy, Spain, France, Japan, Brazil, China, Colombia, Germany, Mexico and Panama attended the meeting and metro authorities now have one week to answer questions these firms have about the initiative.
Shortlisted firms will be announced on February 19.
"We have had a very good response and expect the metro tender process to move forward without any problems," executive secretary of the state metro department, Roberto Roy, was quoted as saying.
Technical and economic offers are expected to be opened by end-May or the beginning of June and authorities hope to start works in H2, according to previous reports.
Panama's metro line 1 will run 14km from the Los Andes neighborhood in the north of the city to the Albrook transport terminal in the south.
To see shortlist bidding rules, go to this link (http://www.panamacompra.gob.pa/documentosconvertidos/2273-01.pdf)
By Business News Americas staff reporters
* New port regulations provoke mixed reactions - Brazil
New norms regulating Brazil's port sector to be published in February have been met with mixed reactions from sector players.
Private investors wanting to build port terminals will now have to pass through a concession process, local paper O Estado de S. Paulo reported.
National waterways regulator Antaq has said that there will be an emphasis on the concept of public ports, where several companies operate under a central administration.
Only companies that handle their own cargo exclusively will be given authorization to build port terminals, according to Antaq director Fernando Fialho.
If port activity is slow, the company will be able to handle third party merchandise as long as it handles the same type of cargo. So, if a firm builds a terminal to handle solid bulk cargo, it will not be able to work with containers, vehicles or bulk liquids.
Firms wishing to build ports to handle cargo without restrictions will have to pass through a concession process.
"Our objective is to avoid a predatory tendency in the sector and provide more competitiveness to the Brazilian economy," special ports department (SEP) Pedro Brito was quoted as saying.
OTHER REACTIONS
Sector experts, however, claim that the regulations will restrict the construction of ports and that the government has not been doing enough to boost the sector, the report said.
If nothing is done about this, the sector will collapse as current installations will not be able to handle the growing demand.
Currently, Brazil has a deficit of 50 berths at its ports and ships have to wait as much as one week to carry out their operations, according to a study carried out by the National Navigation Center (CentroNave)
"The new rules will be a straightjacket, impeding the private sector from investing," said CentroNave director Elias Gedeon.
By Business News Americas staff reporters
* Atrex to build new cargo handling facility in Santiago airport - Chile
The Chilean association of express transport Atrex plans to build a new operating center at Santiago's Arturo Merino Benítez international airport, according to Atrex general manager Luis Miranda.
"We are evaluating the construction of an operating area of about 6,500m2, which means an investment of around US$5mn," Miranda was quoted as saying by local paper Estrategia.
The facility is expected to begin operations during the second half of 2011 and will house 18 courier firms operating in the country, the report said.
The current cargo handling area will be demolished and the new center will be built at the entrance to the airport.
Atrex is currently in conversations with airport concessionaire SCL Terminal Aéreo Santiago and an agreement has been signed to receive some 8,000m2 on which to build, according to the report.
By Business News Americas staff reporters
* Japan reiterates interest in financing metro - Panama
Japan's infrastructure and transport minister Seiji Maehara confirmed his government's interest in providing technical and financial support for the construction of the first metro line in Panama City, during Panamanian vice president Juan Carlos Varela's official visit to Japan.
If Japan participates in the project, the Panamanian metro could be developed using the Asian country's experience and technology. Japan's public transport system is one of the largest in the world, local paper La Estrella reported.
Varela also presented the metro project to the Japan Bank for International Cooperation (JBIC) and to Japan's International Cooperation Agency (JICA).
A delegation from Japan first expressed interest in providing support for the construction of the metro in October last year.
By Business News Americas staff reporters
* São Paulo to invest BB's payroll contract payment in metro expansion - Brazil
Federally controlled Banco do Brasil (BB) will handle the payroll of the country's largest city São Paulo for the next five years, daily Estado de S Paulo reported.
BB paid 726mn reais (US$409mn) for the contract which includes payroll payments for 220,000 municipal workers, as well as payment to suppliers.
BB's private sector rivals Itaú - now Itaú Unibanco (NYSE: ITUB) - and Bradesco (NYSE: BBD) had controlled the São Paulo payroll since 2005 when they won their contracts in a tender. Those contracts were due to expire in September this year, so the state will pay them 120mn reais in fines for terminating the contracts ahead of time.
São Paulo mayor Gilberto Kassab said the city will greatly benefit from the 606mn reais it will receive after paying the fines as the funds will be invested in expanding the subway system, the daily reported.
By Business News Americas staff reporters
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In-deph interview
* Railway transport is a feasible solution
Jorge Dublé
General manager
Icil Icafal
Chile, Regional
http://www.bnamericas.com/interviews/infrastructure/Jorge_Duble_,Icil_Icafal,/170884395
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Main companies covered in today's news
* Japan International Cooperation Agency
http://www.bnamericas.com/company-profile/en/Japan_International_Cooperation_Agency-JICA/170884395
* Agência Nacional de Transportes Aquaviários
http://www.bnamericas.com/company-profile/en/Agencia_Nacional_de_Transportes_Aquaviarios-ANTAQ/170884395
* Japan Bank for International Cooperation
http://www.bnamericas.com/company-profile/en/Japan_Bank_for_International_Cooperation-JBIC/170884395
* Ministerio de Transporte
http://www.bnamericas.com/company-profile/en/Ministerio_de_Transporte-Mintransporte/170884395
* Banco do Brasil S.A.
http://www.bnamericas.com/company-profile/en/Banco_do_Brasil_S,A,-BB/170884395
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