The Panama Urban and Domiciliary Cleaning Authority will launch a new tender for garbage collection in Eastern Panama. This decision comes after the previous bidding process was declared void. The Panama public procurement tribunal upheld the cancellation ruling.
Authority Director Ovil Moreno confirmed the news this week. Neither of the two companies that participated met all the minimum requirements. The dispute centered on a bank reference letter whose validity was questioned. [Translated from Spanish]
Failed Bidding Process Explained
The evaluation committee included nine qualified professionals from different fields. They determined both companies failed to meet a key requirement. This led to the declaration of a failed tender.
“The company made a claim regarding a bank reference letter. Whether it existed or met the criteria was unclear. I cannot determine that because I cannot be both judge and party,” Moreno explained. [Translated from Spanish]
“The company made a claim regarding a bank reference letter. Whether it existed or met the criteria was unclear. I cannot determine that because I cannot be both judge and party.” [Translated from Spanish]
The losing bidder challenged the decision. But the procurement tribunal ratified the original ruling. That opened the door for a completely new process.
Unique Challenges in Eastern Panama
Moreno emphasized that Eastern Panama has distinct operating conditions. Collecting trash in El Chorrillo is not the same as collecting it in San Francisco. Each area requires different equipment.
“Collecting here in El Chorrillo or collecting in San Francisco. It’s not the same as collecting in 24 de Diciembre or Mesa de San Martin. These are different characteristics,” Moreno said. [Translated from Spanish]
Some zones need more compacting trucks. Others need more grid-type vehicles. The bidding documents reflect these differences based on volume and geography.
Tocumen presents a particular challenge. That area generates more than 300 tons of waste daily. That volume is comparable to what San Miguelito produces.
Contract Details and Service Coverage
The new tender covers eight townships. These include Tocumen, Pedregal, Mañanitas, Juan Díaz, Las Garzas, San Martín, 24 de Diciembre and Pacora. The Panama Urban and Domiciliary Cleaning Authority will manage the bidding process.
The contract will run for approximately seven years. Its estimated value falls between $40 million and $42 million. That makes it one of the larger waste management contracts in the capital region.
Until a new company wins the bid, the Authority itself will handle Panama East waste collection. This ensures no interruption in service for residents.
Next Steps and Timeline
The Authority plans to publish the new tender documents soon. Officials did not specify an exact date. But they indicated the process would move forward quickly.
Moreno stressed the importance of getting the requirements right this time. The failed process cost time and resources. A successful bid will ensure reliable waste collection for thousands of families.
Residents in the affected areas have expressed frustration. Trash collection has been inconsistent during the transition. The Authority says it is doing everything possible to maintain service levels.
This is not the first waste collection tender to face problems in Panama. Previous contracts have also faced legal challenges and delays. But officials say they have learned from past mistakes.
The new bidding documents will include clearer requirements. This should reduce the chance of disputes over bank references or other technical details. The evaluation committee will also receive additional training.
Panama City produces thousands of tons of waste each day. Proper collection and disposal remain critical for public health. The government has made waste management a priority in recent years.
Moreno expressed confidence that the new process would attract qualified bidders. Several companies have already expressed interest. The Authority expects a smooth bidding process this time around.