jorge l. quijano - fidic 2014 - plenary 8... · fidic international infrastructure conference....

Jorge L. QuijanoAdministrator/CEOPanama Canal AuthoritySeptember 30, 2014

Jorge L. QuijanoAdministrator/CEO

Panama Canal AuthoritySeptember 30, 2014

Large infrastructure projects: The Panama Canal experience

FIDIC InternationalInfrastructure Conference

Large infrastructure projects: The Panama Canal experience

Transits and TonnageAF1915 - AF2005

14,011

279.1

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,0001

91

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Año Fiscal

20

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sits

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ns i

n m

illi

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s

21%

231

170.1

64%4,832 9,931 18,940 22,064

FY 1955 FY 1975 FY 1995 FY 2005

The ExpansionProgram waspreceded by more than five years of studies

More than a 100 studies

International Contractors led the effort.

International and Local experts

Met rigorous international Standards

The Panama Canal experience regarding implementation ofLarge Infrastructure Projects


People, processes and tools… in that order


Promotion / Project marketing. Early Access to sites.


Marketing of the Panama Canal Expansion ProgramExpocomer Infoconference - March 2007

Participants: 806Companies: 324Countries: 29Continents: Americas, Asia and Europe

Post Panamax LocksPacific

Deepening and widening of the

Atlantic Entrance

17.66 M m3

Deepening and Widening of

Pacific Entrance

8.7 M m3

Increase the maximum operating level of Gatun Lake

26.7 m 27.1 m

Deepening and widening of the Gatun Lake Channels and Deepening of the Culebra Cut

Pacific Access Channel to the new Locks 49 M m3

New Pacific

Locks

►

Access

Channel ►

PresentLocks▼

Post Panamax Locks - Atlantic

PresentLocks▼

Expansion Program Subprojects

Early Access to Project Sites

Work PackageProject delivery

method

Number of

contractsDesigner Contract type

Dredging of Pacific entrance Design-Bid-Build 1 ACPNegotiated lowest bid

Dredging of Atlantic entrance Design-Bid-Build 1 ACPNegotiated lowest bid

Dredging of Culebra Cut Performed by ACP N/A ACP ACP

Dredging of Gatun Lake Performed by ACP N/A ACP ACP

Dry excavation of the navigational channel

Design-Bid-Build 4 ACP / URS Lowest bid

Increase the maximum operating level of Gatun Lake

Design-Bid-Build Various minorACP /

contractorsLowest bid

Construction of the Atlantic and Pacific post-Panamax locks

Design-Build 1 ContractorBest value non negotiated with pre-qualification

Contracting transparency of utmost importance to lure top international contractors

Selection of Project delivery method and contract type

Choice of FIDIC Contract for Locks Design and Build Project

Determine precise project scope and exerciseextreme discipline to adhere to it during contractexecution.

Total transparency in managing the bid process, evaluation and award of the Contract.




PAC-4

Dredging Atlantic

Entrance

Design & Construction of

the Locks

PAC-3

DredgingPacific Entance

PAC-2

PAC-1

DredgingGatun Lake

North Reaches

PAC-0

Bid Price of theMain Expansion Contracts

Integration of the roles of the Owner’s Project Manager and Contracting Officer.

Early participation of the Project and Contract/ClaimsManagement Team (owner and contractor)



Determine precise project scope and exercise extreme discipline to adhere to it during contract execution.

Total transparency in managing the bid process, evaluation and award of the Contract.


Locks Design and ConstructionTimeline of the Contracting Plan

New Datefor Last Individual Meeting with the Consortia 16-JAN-09

AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DIC JAN FEB MAR APR MAY JUN JUL AUG SEP

2007 2008 2009

Request For Qualifications Issued27-AUG-07

Draft Issue of the Terms of Reference21-DEC-07

Receipt of Qualifications15-NOV-07

Short List Selection14-DEC-07

Individual Meetings with the Consortia29-JAN-08

Homologation of the Terms of Reference26-MAR-08

Final Terms of Reference Issued18-APR-08

Designation of the Technical Evaluation Board

14 months

Preview Conference13-SEP-07

Receipt of Proposals3-MAR-09

Contract Award15 -JUL-09

Proposals evaluation advisorsidentified9-FEB-09

Prequalification

Performance & Payment Bonds received11-AUG-09

• Allow enough time for contractors to fully assess project and risks.• As many prebid meetings as necessary (joint and individual).• Should result in more competitive bids and less claims.

Consortia consisting of numerous members presentconsiderable challenges for projects. One must be a major shareholder.


Consortium Members Designers Gate fabricators

C.A.N.A.L.

ACS Servicios, Comunicaciones y Energía, S.L. – Leader Sener Ingeniería y Sistemas

ACS Servicios, Comunicaciones y Energía, S.L.

Acciona Infraestructuras, S.A. Haskoning Nederland BV

Fomento de Construcciones y Contratas, S.A. Mott Macdonald Limited

Hochtief Construction AG Hochtief Consult

Constructoras ICA S.A. de C.V.

Atlántico-Pacífico de

Panamá

Bouygues Travaux Publics – Leader

AECOM – LeaderALSTOM Hydro Energia Brasil

Bilfinger Berger

VINCI Construction Grands Projets

Construcoes e Comercio Camargo Correa S.A.

Construtora Andrade Gutierrez S.A.

Construtora Queiroz Galvao S.A.

ALSTOM Hydro Energia Brasil

BARDELLA Ind. Mecánicas

Bechtel, Taisei,

Mitsubishi

Corporation

Bechtel Internacional, Inc. – Leader

Bechtel Internacional, Inc. –Leader

Wuchang Shipyard Taisei Corporation

Mitsubishi Corporation

Grupo Unidos por el

Canal

Sacyr Vallehermoso S.A. – Leader Montgomery Watson Harza (MWH) –Leader

Heerema Fabrication GroupImpregilo S.p.A.

Jan de Nul n.v. IV-Groep

Constructora Urbana, S.A. Tetra Tech

Prequalified Consortia

Consortium Members Designers Gate fabricators

C.A.N.A.L.

ACS Servicios, Comunicaciones y Energía, S.L. – Leader Sener Ingeniería y Sistemas

ACS Servicios, Comunicaciones y Energía, S.L.

Acciona Infraestructuras, S.A. Haskoning Nederland BV

Fomento de Construcciones y Contratas, S.A. Mott Macdonald Limited

Hochtief Construction AG Hochtief Consult

Constructoras ICA S.A. de C.V.

Bechtel, Taisei,

Mitsubishi

Corporation

Bechtel Internacional, Inc. – Leader

Bechtel Internacional, Inc. –Leader

Wuchang Shipyard Taisei Corporation

Mitsubishi Corporation

Grupo Unidos por el

Canal

Sacyr Vallehermoso S.A. – Leader Montgomery Watson Harza (MWH) –Leader

Heerema Fabrication GroupImpregilo S.p.A.

Jan de Nul n.v. IV-Groep

Constructora Urbana, S.A. Tetra Tech

Consortia that submitted proposals on March 3, 2009

Atlántico-Pacífico de Panamá

Bouygues Travaux Publics – Leader

AECOM – LeaderALSTOM Hydro Energia Brasil

Bilfinger Berger

VINCI Construction Grands Projets

Construcoes e Comercio Camargo Correa S.A.

Construtora Andrade Gutierrez S.A.

Construtora Queiroz Galvao S.A.

ALSTOM Hydro Energia Brasil

BARDELLA Ind. Mecánicas

Bechtel-Mitsubishi-Taisei CANAL GUPC

Consortia consisting of numerous members presentconsiderable challenges for projects. One must be a major shareholder.


Integration of members in the Contractor’sManagement Team - aware of the diversity of corporate cultures, languages, nationalities, safety culture, etc.

In Design – Build Projects the Designer firm should be part of the consortium even though its liability may be limited. It must not be a mere subcontractor.

Main Contractor must secure firm subcontractor pricingprior to bidding for Project.

Contractors firms must prepare accurate estimates to submit adequate bids and avoid the temptation to underbid under the assumptions that change orders or variations of the contract will occur to offset underbidding.

Contractors should use stipend and time to perform required field investigations to reduce risk profile.

Contractors must not underestimate need for timely submittal of documentation, specially in government projects. Some paper work is strictly necessary prior to commence work.

Expect that owners will enforce full compliance with safety, quality and environmental requirements.


Program Execution 2007 – 2015Environmental and Social Monitoring and Control

Environmental Impact Assessment

Ecological Compensation paid to ANAM

Wildlife Rescue Plan

Archeological Rescue

Paleontological Resources Studies

Reforestation

Air and Water Quality Monitoring

Noise and vibrations monitoring

Meetings with communities according to project

advance

Report and inspection by independent consultant

Inspections by ANAM

Public Reporting on the Progress of the Expansion Program

20

06

20

07

20

08

20

09

Thirty-one Quarterly Reports

Twenty Reports to the Nation

20

10

20

11

20

12

20

13

20

14

Contractor’s Claims Steps:

Dispute Settlement Process

1. Employer’s Representative Determination

2. Dispute Adjudication Board Determinationbased on law

3. Arbitration at the International Chamber of Commerce tribunal in Miami, Florida, USA under Panamanian Law

Step 1 - Contractor’s Claims :

• The Contractor has 28 days to notify the intent of submitting a claim since he was notified or shouldhave been notified of the event, and 42 days tosubmit the details and full supporting particulars.

• ACP has 42 days to respond with its approval ordisapproval of claim. If it agrees with the claim, a variation is issued, and if it rejects the claim, the Contractor may take it to the Dispute Adjudication Board (DAB).


• The Locks Contract established that disputes between the parties shall be adjudicated by the Dispute Adjudication Board (DAB).

• The DAB is composed by three members.

• Disputes submitted by the Contractor to the DAB: 11

• Disputes settled to date: 10

• Peter Chapman, President• Robert Smith, nominated by ACP• Pierre Genton, nominated by GUPCSA

Composition of Dispute Adjudication Board (ADB)

Step 2 - DAB (Dispute Adjudication Board) :

• The Contractor does not have a fixed term to submit its dispute to the DAB. However, itcannot invoke arbitration without exhaustingadministrative remedies.

• The Parties have 28 days after they receive the DAB’s decision to give notice to the other Party of its dissatisfaction. If none of the Parties has given notice of its dissatisfaction, the decisionwill become final and arbitration cannot be invoked.


Dispute Adjudication Board (DAB)

• The disputes arising from the Contract or the execution of the Works, including any dispute as to any determination, instruction, opinion orvaluation of the ACP’s Representative, shall be settled by the DAB, nota DRB.

• Any of the Parties may refer the dispute in writing to the DAB for itsdecision. No opinions, recommendations or advice.

Step 3 - International Arbitration:

• The arbitration shall be decided in law (within the meaningof Panamanian law) and shall be conducted in English, and settled by three arbitrators who shall all be lawyers. The Rules of Arbitration of the International Chamber of Commerce (ICC) will be applied. The venue of the arbitration shall be Miami, Florida – USA.

• The arbitration shall be conducted according to the International Bar Association Rules on the Taking of Evidence, and the arbitration agreement and arbitrationshall be governed by the United States Federal ArbitrationAct.

Dispute Resolution Process

Initial intentions of claims are not pursued in a timely manner

Information provided to support claims is normally insufficient to process in a timely and effective manner

Contractors appear to inflate claim costs and request excessive amounts of additional time to perform the work under the claim

Changes in field managers during the execution of theProject make the claim assessment more difficult

In Design - Build projects the designer’s performance may provoke claims against the owners

Other Dispute Resolution Issues

Panama Canal Expansion Update

//Pi-6/iari_data/PRESENTACIONES/Transshipment of Gate C3 13may2014.mp4

//Pi-6/iari_data/PRESENTACIONES/Transshipment of Gate C3 13may2014.mp4

200

1550 50 100 150 200 250

Current Expansion

Original

1886 1909

2008 2007

In million of cubic meters

78%

Volumes of excavation and dredging

3.4

4.4Current Panama Canal Expansion

Original Construction

In million cubic meters

Existing Locks

129%

New Locks

Volume of concrete for the construction of the Locks

1 2 3 4 5 60

Summary Schedule of Main Projectsas of September 2014

Activity by quarter (Q) % Progress

Lock

s Specifications and locks models 100%

Design and build post-Panamax locks 76.5%

Acc

ess

ch

ann

el Pacific access channel - phase 1 100%

Pacific access channel - phase 2 100%

Pacific access channel - phase 3 100%

Pacific access channel - phase 4 75.7%

Dre

dgi

ng

Dredging of the Pacific entrance 100%

Deepening and widening of Gatun Lake and deepening of Culebra Cut 86.8%

Dredging of the Atlantic entrance 100%

Increase operating level of Gatun Lake 92.5%

Expanded Canal begins operations

Expansion Program progress 80.3%

Bidding and contracting ExecutionSpecifications and design

Baseline* Baseline Baseline

Beginning of operationsContingency

against baseline

* Baseline from 31 December 2006 including contingency

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

The Panama Canal ExpansionFIDIC International Infrastructure Conference

Jorge L. QuijanoAdministrator/CEO

Panama Canal AuthoritySeptember 30, 2014

jorge l. quijano - fidic 2014 - plenary 8... · fidic international infrastructure conference....

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