oct 2009 acp

Panama Canal Expansion Program

Nicolás A. Solano Panama Canal Authority

October 13, 2009

Panamá – Logistic Center of the AmericasReaching the full potential of its geographical position

FY 1955 FY 1975 FY 1995 FY 2008

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4,832 9,931 18,940 23,510

14,702

Transits vs Tonnage PC-UMSFY 1915 – FY 2008

Fiscal Year

Transisthmian Pipeline starts

operations

Panama Canal Expansion Program

Program Components

Projects Underway

Locks Contract Overview

Mayor Contracts under bid

Administration

Schedule

Expansion Program Components

Expansion Program Components

Deepening & widening of the

Atlantic entrance

Atlantic Post Panamax Locks

Pacific Post Panamax Locks

15.8 M m3

Deepening & widening of the Gatun lake & Culebra Cut

navigational channels

Post Panamax Pacific Locks Access Channel

48 M m3

Deepening & widening of the Pacific entrance

9.1 M m3

Increase the Maximum Operating Level of Gatún Lake

26.7 m 27.1 m

New Locks►

Access Channel ►

Existing Locks

▼

Existing Locks

▼

Atlantic Ocean

Pacific Ocean

Deepening & widening of the

Atlantic entrance

Atlantic Post Panamax Locks

Increase the Maximum Operating Level of Gatún Lake

Pacific Post Panamax Locks

15.8 M m3

26.7 m 27.1 m

Deepening & widening of the Gatun lake & Culebra Cut

navigational channels

Post Panamax Locks Pacific Access Channel

48 M m3

Deepening & widening of the Pacific entrance

9.1 M m3

Expansion Program Components$5.25Billion investment over a 7 year period

Atlantic Ocean

Pacific Ocean

Projects Underway

Projects Underway

Pacific Access Channel - Phase 1

9

Current

Programmed

95%

Borinquen Road 3.4 Km.

Borinquen Road

Contract Scope:

• 7.4 Mm3 of earth removal,

• Cleanup of 146 ha of UXO disposal area

• Relocation of 3.4 km of Borinquen Road

Awarded : July 17, 2007

Amount: $40,431,196.00

Pending: drainage system work, asphaltic cap, erosion control and guttering work.

Original

Original

July 15, 2009

July 15, 2009

136 m

46 m

7.4 M m3 excavated0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

UXO 1146 Ha Cleared

93%

10

Relocation of 230 KV Transmission Towers and Lines

Awarded: September 13, 2007

Company: Compañía Eléctrica de Medellín LTDA

Proposed Transmission Line

Existing Transmission Line

Work Accomplished:

Foundations: 40 of 40

Towers: 10 of 10

100% of the cables have been installed and energized on April 19, 2009

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Current

Programmed

100%

100%

Projects Underway Pacific Access Channel - Phase 2

11PAC - 2

Cocoli River

Borinquen Road

Cocoli River DiversionExcavation

Project Scope: Excavation of 7.5 M m3, Relocation of 1.3 Km road, 3.5 Km Cocoli River diversion.

Awarded: November 27, 2007.

7 M m3 excavated 0 10 20 30 40 50 60 70 80 90 100

84%

92%Programmed

Current

Projects Underway

Pacific Access Channel - Phase 2Cocoli River diversion

Borinquen Road

Picture 3

0+175 0+675 1+175 1+675 2+175 2+675 3+175 3+675 4+175 4+675 5+175 5+675 6+175 6+675 7+175

EL

EV

AC

ION

140

- 40

- 10

20

50

80

110

140

- 40

- 10

20

50

80

110

PAC- 3

UXO 2190 Ha

PAC-1

PAC-2

PAC 3

Projects UnderwayPacific Access Channel - Phase 3

Clearing 190 ha of UXO area

Excavation: 8.0 M m3

Awarded: December 16, 2008Company: Constructora MECO, S.A.

0 10 20 30 40 50 60 70 80 90 100

Current

Programmed

31%

21%

1.44 M m3 excavated188 hectares cleared

UXO 2190 Ha

Projects UnderwayPacific Access Channel - Phase 3

188 hectares cleared – 99%

Remaining2 Has.

Projects UnderwayPacific Entrance Deepening and Widening (9.1 M m3)

Picture 5

Breydel Hopper Dredge

Awarded: April 1, 2008Company: Dredging International Amount: $ 177,500,676.78Dredging Amount: 9.1 M m3

4.62 M m3 dredged0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Current

Programmed

46%

41%

Drilling & Blasting BargeYuan Dong 007

Projects UnderwayGatun Lake & Culebra Cut Dredging Areas

Picture 29

Barro Colorado

Gamboa

Gatun Lake

Gatú

n

Peña Blanca

Bohío

Buena Vista

Mamey

Juan GrandeChagres

Picture 43

Picture 44

San Pablo

Tabern

illa

Gamboa

Picture 19

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Current

Programmed

22%

23%

Atlantic & Pacific Post Panamax Locks (40 M m3 of dry excavation)

Pacific

Atlantic

Lock Chamber

Length: 427 m

Width: 55 m

Depth: 18.3 m

Vessel size

LOA: 366 m

Beam: 49 m

Draft: 15.2 m

Locks Contract Overview

Dimensions of Locks and Vessels

294.1 m (965’)

33.5 m (110’)

32.3 m (106’)

304.8 m (1,000’)

12.8 m (42’)

366 m (1,200’)

55 m (180’)

49 m (160’)

427 m (1,400’)

18.3 m (60’)

12.4 m(39.5’)

15.2 m(50’)

Existing Locks Max Vessel size: 4,400 TEU’s

New Locks Max Vessel size: 12,600 TEU’s

New Locks

Existing Locks

PostPanamax Locks Operation GUPC’s Proposal

With the water saving basinsthe new locks will use 7% less water than the existing locks

Existing LocksNew Locks

Wat

er U

tiliz

atio

n

WSB 1WSB 2WSB 3

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 – Leader ALSTOM 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 – Leader ALSTOM 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

Locks Design and Construction Bidding ProcessOpening of Price Envelopes - July 8, 2009

Locks Design and ConstructionTimeline of the Contracting Plan

New Date for Last Individual Meeting with the

Consortia 16-JAN-09

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

2007 2008 2009

Request For Qualifications

Issued27-AUG-07

Draft Issue of the Terms of Reference

21-DEC-07

Receipt of Qualifications

15-NOV-07

Short List Selection14-DEC-07

Individual Meetings with the Consortia

29-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 Award

15 -JUL-09

Proposals evaluation advisors

identified9-FEB-09

Prequalification

Performance & Payment

Bonds received

11-AUG-09

AUGUSTJULY

Notice of award

5 days

3 days

End of notification

period (Edict)

Opening of envelopes with

prices

28 days

42 days

Process before the work began

Proposal evaluation documents available to

bidders

7 days

$400 M & $50 M Performance and Payment bonds

received 11-Aug-09

End of period for protesting award

27-Jul-09

Work began25-Aug-09

Issuance of notice to commence

18-Aug-09

GUPC Locks Design Pacific Locks

GUPC Locks Design Pacific Locks

Atlantic EntranceDeepening & Widening

Width: 225m (740´) ▶

March 2013End of project:

$89,617,317Awarded amount:

September 25, 2009Date of award:

Jan de Nul NVAwarded to:

September 10, 2009Proposals received:

April 30, 2009Pre Bid Conference:

February 27, 2009RFP Issued:

15.6 M m3Volume:

Major contracts under bid

Picture 3

0+175 0+675 1+175 1+675 2+175 2+675 3+175 3+675 4+175 4+675 5+175 5+675 6+175 6+675 7+175

EL

EV

AT

ION

140

- 40

- 10

20

50

80

110

140

- 40

- 10

20

50

80

110

Pacific Access Channel - Phase 427 M m3 of Dry Excavation

Tender Documents published on July 31, 2009

PAC 4

PAC 2

PAC 3

PAC 1

PAC-2

PAC-1

PAC-3PAC-4

Borinquen Dam

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Current

Programmed

2%

2%• Site Visit: August 25, 2009

• Pre tender Meeting: August 26, 2009

• Submission of Technical Proposal: October 15, 2009

• Bid Opening (Price Proposal): November 18, 2009

Miraflores LakePacific Locks Access Channel

Clay Core

Rock

Borinquen Dam

Administration

The $2.3 billion financing package will cover a portion of the $5.25 billion total cost of the project and will be allocated as follows:

Administration Secured Financing for Expansion Program – December 9, 2008

FINANCING: European Investment Bank (EIB) $ 500 M

Japan Bank for International Cooperation (JBIC) $ 800 M

Inter-American Development Bank (IDB) $ 400 M

International Finance Corporation (IFC) $ 300 M

Corporación Andina de Fomento (CAF) $ 300 M

Subtotal: $2,300 M

ACP: $ 2,950 M

Total: $ 5,250 M

The negotiated financing structure includes favorable provisions for the ACP including a 20-year amortizing period with a 10-year grace period.

Locks Project Integrated Organizational Structure incorporating CH2MHill

CH2MHillACP

Assistant, Locks Contract Specialists

EVP, Eng. & Program Administration

Jorge L. Quijano

Program Administrator (CH2MHILL)Mike Kennedy

Quality Assurance John Lopacki

Executive Manager., Locks Project

Jorge De la Guardia

Senior Locks Contract Specialist

Senior Claims Analyst - Locks

Locks Construction ManagerJoe Cazares

Locks Design ManagerCheryl George

Locks Design AssistantMary Goodson

Manager, Pacific Locks Ken Fortner

Assistant, Pacific Locks Juan Wong

Manager, Atlantic Locks Don Heyer

Assistant, Atlantic LocksJosé Reyes

Manager, Project Controls

Assistant, Project Controls

José Pascal

Assistant, Quality Assurance

Claims Analyst

Administration Program Management Integrated System

Main Modules

Management Dashboard

Primavera P6

Project Accounting (Oracle PA)

Primavera Contract Manager (Document Control)

Risk Analysis (Primavera Pert Master and @Risk)

Cost Estimates (Heavy Bid and Timberline Estimating)

Administration Environmental 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

Reforestation Projects in Execution

0 10 20 30 40 50 60 70 80 90 100

PAC-2 / Campana National Park (Panama/ West)

PAC-1 / Camino de Cruces National Park (Panama)

PAC-2 / Gral. Omar Torrijos National Park (La Rica/Caño Sucio–Cocle)

PAC-3 / Chagres National Park (Panama-Quebrada Oscura)

Gatun Lake Dredging / Baru Volcano National Park (Chiriqui)

PAC-2 / Gral. Omar Torrijos National Park (Bajo Grande/Ojo de Agua–Cocle)

PAC-3 / Gral. Omar Torrijos National Park (Piedras Gordas – Cocle)

PAC-3 / ANAM Forest Research Center (Chiriqui)

Baru Volcano National Park

30 Ha

Gral. Omar Torrijos National Park

180 Ha

Campana National Park

30 Ha

Camino de Cruces National Park

115 Ha

Chagres National Park

40 Ha

Forest Research Center 50 Ha

20%

30%40%

22%

30%

62%

22%

62%

Schedule

Lo

cks

Activity

Excavation Contract 1

Deepening/Widening of Gatun Lake and Deepening of Gaillard Cut

Dredging of the Atlantic Entrance

Dredging of the Pacific Entrance

06 2007 2008 2009 2010 2011 2012 2013 2014

Increase Operating Level of Gatún Lake

Expanded Canal Begins Operations

Design & Build Post-Panamax Locks

4T 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T 3T 4T

% Progress

Acc

ess

Ch

ann

el

Dre

dg

ing

* Baseline from December 31, 2006 including contingency.

Bidding and Contracting ExecutionSpecifications and Design

Baseline* Baseline Baseline

Beginning of operationsContingency against baseline

Specifications and Locks Models

Excavation Contract 2

Excavation Contract 3

Excavation Contract 4 and Dams

Summary Schedule of Main Projects withBaseline and Contingencyas of August 31, 2009*

91%

84%

31%

2%

22%

1%

46%

<1%

<1%100%

Panama canal Expansion Program

Nicolás A. SolanoPanama Canal Authority

October 13, 2009