PANAMA has submitted a written proposal to Odebrecht to cancel ­ at no cost to the state, ­ a partnership agreement for the development of the Chan 2 hydroelectric project.

Minister of Economy and Finance Dulcidio De La Guardia said that the letter sent on Thursday, Jan.26 stated that  the position of the government is to cancel the contract "as soon as possible."

De La Guardia said the government gave Odebrecht a deadline of one week to respond.

"We have other alternatives in case [Odebrecht] does not accept," he  said.

The tender was awarded to Odebrecht Energy Luxembourg, now called the Odebrecht Latin Fund, on June 5, 2014, a few weeks after the end of the  Ricardo Martinelli government,  and after the Public Services Authority (ASEP) canceled the concession granted to the company AES Changuinola, noting that with this work AES would control more than 25 percent of the power generation in the country, which is not allowed.

During the bidding process to hire a strategic partner, GDF Suez and Enel Green Power also showed interest, but on the day of the bid the only submission was by Odebrecht.

Construction was due to start in 2015, but the company requested an extension that was

approved by ASEP to begin in June 2016.However, the work did not start on that date and the  company requested more time for the start of construction.

The project will be developed in the Palo Seco Protected Forest, in the districts of Chiriquí Grande and Changuinola, Bocas del Toro.