Although in principle the contract to build the 80th metro was not going to include an advance payment for the execution of its works, Finally, it was decided to include it in the bidding process that has been going on since February.
The delivery of this advance will be 19.9% of the main contract, which is equivalent to $350,441 million. This would be divided into two parts. The first, of $229,789 million; and the second, of $120,652 million.
A key point here. The tender that is open, for approximately $1.7 billion, will have a turnkey modality, that is, the consortium, company or company that wins the process It will be responsible for making final designs, building the system and bringing the trains.
These advance monies must be distributed equally for civil works and for the purchase of trains, according to the new requirements of this tender. To finish the designs there will be no advance payment.
The Medellin Metro explained that the inclusion of an advance in the form of payment was established incorporating the legal guarantees that ensure that this resource is invested correctly in the execution of the activities that are required for the project.
Sergio Andrés López, project manager and director of the Medellín Administrative Planning Department, explained that this determination was made because “what the market was showing is that the bidders had to go into debt or have a very high financial leverage in order to achieve the return of resources (…) What we want to prevent is that companies do not present themselves”.
This modification was made with the analyzes and legal discussions of the team of professionals assigned to the project, after reviewing 1,250 observations. “The banks authorized us to make this type of advance. They are two coincident things: the market asking for it and the bank, which is the one that supports the project, allowing it,” said López.
How will you guarantee payments?
Before receiving the advance, the winning contractor must present a letter of credit issued by a financial institution and a bank guarantee, both with high international ratings.
Has the payment of advances in public works changed in any way after what happened in Centros Poblados? Director López responded: “It has not changed, but it is important to say that we do not do anything if it is not approved by our counterpart in the National Government, which is the Sustainable Urban Mobility Unit. All this issue was arranged with the unit and announced to the ambassadors of the countries that have interested firms”.
José Fernando Villegas, president of the Colombian infrastructure chamber in Antioquia, argued that advance payments should not be seen as a bad figure in and of themselves, despite being recently linked to scandals such as Mintic.
As he clarifies, from that union always It has been defended that the contracts contemplate an advance, in order to give guarantees for the development of the works.
“In an advance it is very important that there are real guarantees, that they are backed by an insurance policy or by a bank guarantee. Normally managed through a trust, so that any money that comes out of the advance is only directed to the contract, ”he said, adding that complying with these principles, the figure is valid and should not lead to problems.
The deadline to receive comments from the market on the conditions of the contracting process It goes until next Monday, May 16. The term to make adjustments to the conditions of the process was established in one business day before the closing of the process that has been defined. for Monday July 6. Then it is expected that the final award and the signing of the contract will be made. It is known that there are companies interested in the bidding process from Korea, Japan, China, France, Spain, Germany, England and Brazil, among others.