Contractor insists starting Guatemalan PPP construction in August is compliant with contract

The contractor that will build the first PPP road project in Guatemala insists that starting construction in August is still compliant with its contract.

Marhnos Guatemala – that together with Precon Group forms the Convia consortium which was awarded the US$125mn contract to widen the Escuintla-Puerto Quetzal highway (pictured) – said that the start of construction during Q3 is compliant with the previously established schedule. 

“Marhnos’ actions regarding the development of the Escuintla-Puerto Quetzal highway are done within the time periods established in the contract signed with the Guatemalan government,” the company said in a statement sent to BNamericas after local media quoted the deputy director of operations and maintenance at Marhnos Guatemala, Armando Salas, saying that construction would begin in August. 

Construction was originally set to start at the end of last year but has been pushed back at least three times, according to media reports. 

In an interview with BNamericas in March, Convía president Sandro Testelli denied reports that the project had suffered delays.

“It hasn’t been postponed," Testelli said. "We're in the process where the proposal for the execution of the works has been delivered. The works should start in May, according to the dates in the contract.”

The company refused a request from BNamericas to access the contract which, it said, can only be provided by government PPP agency Anadie. 

In the statement, Marhnos said the project is currently in the pre-construction stage. 

“We await the approval of the project’s engineering studies by the ministry of communications, infrastructure, and housing (CIV), after which we will start the construction stage,” it said. 

Guatemala will hold general elections on June 25 and some analysts say they could have an impact on certain infrastructure projects. 

“There are some in political spheres who are trying to attract votes by opposing projects,” Marvin Flores, an analyst at local transparency-focused NGO Acción Ciudadana, told BNamericas.

Testelli said the elections would not derail the toll road project as it has been approved both by congress and by a presidential decree. 

The 25-year concession was awarded in July 2018 but the project was only approved by congress in November 2021. 

Along with repairs and the installation of toll booths, Convía’s contract includes operating and maintaining the 43km stretch that connects the municipalities of Escuintla, Masagua, Iztapa and San José.

Puerto Quetzal is Guatemala’s biggest Pacific coast port.