Panama: Waste Collection Tender Halted Due to Consortium Dispute

The General Directorate of Public Procurements (DGCP) admitted a new complaint from the Istmo Green Panamá consortium, thereby halting the tender for contracting companies to handle waste collection in 19 districts of the capital. The dispute is registered in Zone 4, which consists of Tocumen, Pedregal, Mañanitas, Juan Díaz, Las Garzas, San Martín, 24 de Diciembre, and Pacora. The Aseo del Este consortium, made up of Pronto Aseo and Relleno, Transporte y Equipo (Retraneq, S.A.), also competed in this zone. The Istmo Green consortium is integrated by the companies Covelia Panamá and the Colombian firms Promocali S.A.S. and Promovalle S.A.S. In its complaint, Istmo Green states that its disqualification lacks legal foundation, ensuring it presented all the required information in the bidding documents. In large part of its claim, Istmo Green provides arguments regarding what it considers to be breaches of the bidding terms by the other consortium, which were not taken into account by the evaluating commission when issuing its report. During the public act, Istmo Green also presented a proposal for waste collection in Zone 2, composed of the districts of Betania, Pueblo Nuevo, San Francisco, Río Abajo, Parque Lefevre, and Don Bosco. Of these companies, Covelia Panamá and Pronto Aseo had previous contracts with the Urban and Domestic Sanitation Authority (AAUD) to clean part of the capital district. The DGCP recalled that the second report from the evaluating commission of this tender was totally nullified due to procedural deficiencies committed by the commission, which is why a complaint can be filed against the third report without the need to post a bond. According to the DGCP, the complaint action complies with the formalities established in the Public Procurement Law, so it was admitted. The expectation is placed on the decision that the regulatory entity will make, which could change the course of the tender. The evaluating commission, in its latest report, did not evaluate Istmo Green's proposal, under the argument that it did not meet the requirements established in the bidding documents. Other challenges include urban expansion and the logistical complexity of the routes. The DGCP ordered the suspension of Public Act No. 2025-2-98-0-08-LV-006922 while it rules on the complaint. The AAUD recognizes that up to 2,900 tons of waste are generated daily in the capital, equivalent to 1.2 kg per person. The combination of factors has generated pressure on the existing operational capacity.