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On November 15, the Panama Canal Authority (ACP) received statements of qualifications from the four consortia in what will be the largest contract under the Panama Canal’s Expansion Program to design and build the new locks.

On August 27, the ACP released a Request for Qualifications (RFQ) for the construction of the new set of locks to be built under the Canal’s Expansion Program. The fourth consortia that responded, which are comprised of 30 companies from 13 countries, submitted a Statement of Qualification (SOQ) on December 2nd. The ACP will evaluate the SOQs from the four prospective firms based on pass/fail criteria and capabilities. The firms that meet the basic requirements will pass to the second and final round. ACP will release a request for proposal (RFP) for those having met the criteria for the second round so that they may submit their final proposal. The ACP expects to release the RFP in the coming weeks.

“Four superb, world-class consortia submitted SOQs on December 2nd. The locks project is the most important contract under the Expansion Program, and we foresee strong competition for the project. The companies that have submitted qualifications are true pros with a wealth of experience, which means that the prospect of completing the Canal’s expansion on time and with the expected quality is very good,” said ACP Executive Vice President of Engineering and Program Management Jorge L. Quijano. “The reputation of these global contractors and their solid ability to compete bodes very well for the project. Now, we will work diligently in reviewing the submissions and list those that have met our basic requirements and move to release the RFP.”

Prior to submitting the qualifications, a total of 144 representatives from North, Central, and South American, Asian and European firms visited the areas where the new locks will be built and attended an informational meeting regarding the contract.

SECOND MAJOR EXPANSION EXCAVATION CONTRACT ANNOUNCED

The process began September 18, when the ACP released its tender (request for proposal) for the second of five dry excavation projects of the new Pacific locks access channel that will connect the new third set of locks on the Pacific end of the Canal with the existing Gaillard Cut (the narrowest stretch in the Panama Canal). This project involves the removal of 7.5 million cubic meters in a stretch of approximately 2.4 kilometers, just north of where the new Pacific locks will be built.

On November 14, the ACP received a total of eight bids for the contract. In a public ceremony, the ACP opened each bid submission and recorded the price proposals. After a thorough review of the lowest bidder's proposal, the ACP determined last Tuesday that Consorcio Cilsa Minera María met the requirements and proceeded to award the contract to the firm.

"The momentum is clearly picking up, as reflected in the contracting process for the expansion, which is moving along well," said Executive Vice President of Engineering and Program Administration Jorge L. Quijano. "With all the environmental impact studies completed and approved by ANAM, the National Environmental Authority, we are in a position to award all contracts as we complete each tender process. The response from the various consortia for this contract has been impressive, and we're extremely confident in Consorcio Cilsa Minera María's capability to complete the task at hand. We have confirmed that they have the experience, financial backing, the necessary equipment and the know-how to get the job done as programmed."

The scope of work for the second dry excavation project also includes the construction of a new section of road and a new crossing over the Cocoli River, in addition to the removal and/or relocation of electrical utilities, telecommunication lines, water lines, sanitation lines, ducts and sewers. Site work could begin as early as this month after the ACP gives Consorcio Cilsa Minera María the order to proceed. The project is slated for completion during the fourth quarter of the 2009 calendar year.

A joint venture between Panama- and Mexico-based firms, Consorcio Cilsa Minera María, is comprised of two companies - Cilsa and Minera María. Both offer resources and expertise within the engineering, transportation, construction, water and energy sectors.

The chart below shows the companies that submitted bids and their corresponding bid price.

COMPANY	BUDGET
1. Consorcio Condor Proimpetrol (Colombia)	$42,455,577.54
2. Consorcio Masering Cromas (Colombia)	$30,564,475.00
3. Consorcio Conalvías Retraneq (Panama-Colombia)	$37,492,853.18
4. Consorcio M&S MECO Santa Fe (Panama-Costa Rica)	$40,986,400.04
5. International Underground Corp. (United States)	$61,745,339.00
6. Consorcio Cilsa Minera María (Panama-Mexico)	$25,489,200.30
7. Consorcio ICA Panamá - ICA CV (Panama-Mexico)	$45,822,242.77
8. Constructora Urbana S.A. (Panama)	$30,913.000.00

(Note: All prices are listed in U.S. dollars and bids are listed in the order received.)

Expansion will build a new lane of traffic along the Panama Canal through the construction of a new set of locks, which will double capacity and allow more traffic and longer, wider ships

GLOBAL FINANCIAL GROUPS MEET IN PANAMA TO DISCUSS FINANCING FOR EXPANSION

After presenting the Expansion Program at key financial centers around the world, the Panama Canal Authority (ACP) hosted a two-day workshop on the waterway's expansion financing in Panama this week. Amid a packed room at the ACP training center, some of the best known global multilateral development banks attended a workshop, held December 11-12, to gain more insight on the project and the ACP's desire to finance a portion of expansion.

ACP Administrator/CEO Alberto Alemán Zubieta opened the forum with welcome remarks, and senior ACP officials answered questions and conducted presentations outlining various aspects of the expansion. Discussion topics included: market and economic trends, risk management, dredging requirements, workforce development and availability, and the environment.

Representatives from the Inter-American Development Bank, the European Investment Bank, the Japan Bank for International Cooperation and International Finance Corporation attended the two-day event.

"The interest we received from the financial institutions has been strong. We've received some very thoughtful questions during the workshop and it's clear that these banks have a good understanding of the project and the goals we want to accomplish," said Mr. Alemán. "We look forward to continuing this process to develop the best plan for financing the project."

In addition to the panel discussions, the ACP provided a tour of the Pacific expansion construction sites for workshop participants.

Since July, the ACP has been approaching financial institutions to determine the most viable financing for the Canal's Expansion Program. The process began in Panama and continued with presentations to a number of financial institutions in New York, Washington, Hong Kong and London.

The ACP continues to weigh all options with regard to financing.

Expansion will build a new lane of traffic along the Panama Canal through the construction of a new set of locks, which will double capacity and allow more traffic and longer, wider ships.

MONTHLY CANAL OPERATIONS SUMMARY – NOVEMBER 2007

Panama Canal Statistic Summary:

Traffic Statistics:

3. The following page provides the scheduled locks maintenance work and other items of interest to the shipping community.

4. This advisory will be canceled for record purposes on December 31st, 2007.