Panama Canal Authority awards third expansion excavation contract

On December 18, the Panama Canal Authority (ACP) awarded Constructora MECO, S.A. the third of four dry excavation contracts to help create an access channel linking the new Pacific locks with the Canal’s existing Gaillard Cut (the narrowest stretch of the Panama Canal).

The contract process began September 30, 2008 when the ACP released its request for proposals (RFP) for the excavation project. On December 4, 2008, the ACP received six bids for the contract. Following a thorough review, the ACP determined that the lowest bidder, Costa Rican firm Constructora MECO, S.A., established in Panama in 1995, met all the requirements in the RFP and awarded it the contract.

“This pivotal step in the process to build the new lane represents just one more example of the expansion program’s steady advancement. Constructora MECO, S.A. is a leading construction company in Latin America with expertise in the execution of the same type of work that they will undertake here,” said Executive Vice President of Engineering and Program Management Jorge L. Quijano. “The interest shown for the Canal expansion’s various elements is clear evidence that prime contractors desire to make history and work on a very interesting project.”

The scope of work included in the contract encompasses the excavation, removal and disposal of 8 million cubic meters of material, which will further reduce Paraiso (Paradise) Hill from 46 meters to 27.5 meters above sea level. It also calls for the construction of approximately 2.5 kilometers of access roads and the clearing of 190 hectares of land bearing munitions and explosives of consideration (MEC), remnants from former U.S. military training in Panama.