The challenges in infrastructure are diverse for the current government. However, the main demand of businessmen and transporters is the good condition of the road network and the improvement of the administration of the Ministry of Communications, Infrastructure and Housing (CIV), a department accused of presenting the greatest cases of corruption, which have not been the exception in the current administration.
Six months into Bernardo Arévalo’s government, the accusations once morest the CIV once once more reveal the functioning of this state agency.
In less than six months, the president has appointed two communications ministers and dismissed officials from other units for alleged corruption cases that add to others reported and involve the previous government administration.
The collapse of the roads, the cancellation of APM Terminals contracts, the construction of the Escuintla-Puerto Quetzal highway and the remodeling of La Aurora International Airport are challenges and projects that the Arévalo government is facing and that should be resolved or advanced in its corresponding period.
Without foresight
The general director of the Guatemalan Export Association (Agexport), Amador Carballido, believes that the Government has several demands to meet in infrastructure. However, he believes that what has most defined this administration It is the lack of foresight to deal with emergencies due to rains that unleashed a “crisis” which impacts the economy and the image of the country.
“We knew regarding the volume of rain that was coming, but there was no anticipation or planning for the risks that were coming, and this is what most defines the work of the CIV. Nor was there any foresight from the Government cabinet, which can also make decisions. Winter came and the crisis came,” he said.
Carballido advocated for political support from all sectors to resolve infrastructure problems, arguing that the state of emergency is “necessary and the only possibility available.”
On other issues, such as the remodeling of the Airport and the operation of APM Terminals, he commented that these are problems that have been dragged on from other governments and he doubts that they will also be resolved during the current administration.
“The country’s infrastructure has been in bad shape for years. I don’t know if six months is a long time or a short time, but in that time there have been no signs that things are moving in the right direction, although there are positive proposals from the new minister,” he said.
He warned that without adequate infrastructure, There is no foreign investment and the country is not moving forward.
Corruption
On April 11, with 124 days in office, the then Minister of Communications, Jazmín de la Vega, was dismissed by the president, who attributed his decision to a “loss of confidence,” pointing out that the The official had failed to comply with instructions and authorized payments to construction companies outside the agreed control procedure.
The collapse of a sewage pipe at kilometer 44 of the Palín-Escuintla highway caused the road to collapse and revealed the lack of maintenance of the route, which for 25 years was run by a private company and this year passed into state hands.
The repair of that stretch of road led to the dismissal of the director of Roads, Gilberto Guerra, according to the president, for having done everything possible to favor a company.
Hector Fajardo, director of the Central American Chamber of Transporters (Catransca), He said that one of the problems is that officials are appointed to the CIV who are not familiar with the problems that the agency faces.
“For us, the Ministry of Communications is key because it must ensure the road infrastructure and the economy of Guatemalans depends on it, but we are going through a crisis due to the lack of mobility that they are not solving,” he stressed.
Changes
Juan Carlos Zapata, executive director of the Foundation for Development (Fundesa), said that the CIV needs to change the way in which projects operate and the administration of the road contracting system.
“At this moment, it does not matter which government or minister it is, the institutional decisions They have a very high political influence and little technical capacity in the operation and maintenance of roads,” he said.
He added that with the approval of the general law on road infrastructure being discussed in Congress, the necessary tools and conditions would be available to have roads in good condition.
Dismissals
CIV officials have been dismissed for alleged cases of corruption.
- Communications Minister Jazmín de la Vega disobeyed instructions and authorized payments to construction companies outside the agreed control procedure.
- Gilberto de Jesús Guerra, director of Roads, was accused of having interfered in a bidding process to favor a company that would be in charge of repairing a section at km 44 of the Palín-Escuintla highway, where a sinkhole formed.
- Other changes in this portfolio include those of Víctor Alejandro Rosales Castañeda, who held the position of Administrative and Financial Director; Flor Hernández, Head of Purchasing and Contracting; Iris Gutiérrez, Head of Human Resources; and Karla Fabiola Lara, who was in charge of Executive Subdirectorate III.
Necessary infrastructure
Representatives of five business chambers and authorities from the Ministry of Communications agreed that the private sector will provide material, equipment and supplies to speed up the rehabilitation work on kilometer 44 of the Palín-Escuintla highway.
Félix Alvarado, Minister of Communications, reported on the current emergency situation on the road network and requested support with supplies, materials and vehicles for the reactivation of the section of road that is interrupted. since June 13, which has caused problems in logistics chain operations.
Meanwhile, delegates from the organized private sector demanded that the CIV present a comprehensive program for road maintenance and care, as well as details of the projects to be prioritized during the rainy season.
At the request of the business chambers, 14 private sector organizations met with Alvarado, who presented an initiative to have machinery available in case of any emergency.
During the meeting, the improvement of mechanisms to promote competition in the awarding of public works was also discussed. In addition, CIV authorities committed to revitalizing airport and port infrastructure.
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Airport
Businessmen also asked that attention be focused on the remodeling of La Aurora Airport, following the deficiencies faced by travelers at that air terminal were revealed.
Problems range from lack of air conditioning to failures in the conveyor belts. luggage, elevators, escalators or X-ray machines.
Power outages, lack of water, poor sanitary services or long lines to pass through the Immigration windows.
Civil Aeronautics authorities stated that upon receiving the airport facilities they found some irregularities, such as electric stands that had been purchased but not installed.
Faced with this situation, President Bernardo Arévalo announced that a public-private alliance is being analyzed to remodel the airport, while stating that the “Negligence and corruption have prevented the infrastructure from being in place.
Uncertainty in the port
A court ruling has confirmed the nullity of the contract between APM Terminals and Empresa Portuaria Quetzal (EPQ), the company that operates 70% of the operations of one of the most important ports in the country.
The cancellation of the contract forces the Government to find a way out and guarantee operations at EPQ, an issue that has so far generated fear among port users.
So far the authorities of EPQ does not reveal the ways they are analyzing for the container terminal to continue operating, But they do recognize that it will not be through state intervention.
In the midst of this legal and technical analysis, the Anti-Corruption Prosecutor’s Office confirmed that it has opened an investigation based on “several complaints from citizens,” and is therefore investigating the future of APM Terminals in EPQ.
EPQ manager Ricardo Monterroso recently indicated that work is being done on solutions, but he declined to give further details.
On June 13, members of the national logistics chain expressed its concern regarding the possible effects of the cancellation of the APM Terminals contract, while EPQ said it was looking for solutions.
Regarding the impact on the shipping sector of an interruption in services, they said it would be high because transport, like any logistics entity, needs to keep all its assets moving.
Complications
Alejandro Toledo, president of the Council of Users of International Transport of Guatemala (Cutrigua), stated that “the complication that is coming for international trade in Guatemala is very serious” for several factors, and one of these is that the EPQ lacks the capacity to meet the demand for APM.
Highway
Another project in the hands of the current government is the Escuintla-Puerto Quetzal highway, which already has the Final Engineering Study (EDI), a fundamental requirement to proceed with the reconstruction and rehabilitation of the route through a public-private partnership.
The EDI establishes the technical conditions of civil engineering to be developed, the application of national regulations and rules, as well as the financial closure of the work, among other aspects.
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