Bechtel financially fittest in Panama bid-analysts
* Bechtel-led group seen financially strongest
* European groups bring technical strengths
* Price looks key factor for contract
By Danilo Masoni and Sean Mattson
MILAN/PANAMA CITY, July 7 (Reuters) - A team led by U.S. group Bechtel is financially best placed to win the race for an estimated $3.3 billion contract to expand the Panama Canal, analysts said.
The Panama Canal Authority (ACP) overseeing the bidding will open price bids on Wednesday but may take several weeks before announcing a winner. This $3.3 billion contract is the largest chunk of a $5.25 billion project to expand the canal.
Bids were placed months before a presidential election brought into power millionaire supermarket magnate Ricardo Martinelli, bucking a trend of left-wing leadership victories in Latin America. The new president took office last Wednesday.
The other two bidders are a consortium including Spanish giants ACS (ACS.MC), FCC (FCC.MC) and Acciona (ANA.MC), and a smaller group led by Sacyr (SVO.MC) of Spain and Impregilo (IPGI.MI) of Italy.
The closely watched decision was initially expected before Martinelli took office. There has been speculation that bids could exceed Panama's budget and that the project could incur cost overruns.
The expansion of the canal, the biggest contract in Latin America, is to be completed by 2014 which is the 100th anniverary of the first transit.
"Such a complex project must have very solid balance sheet guarantees. The Americans have these guarantees and their project is technically as good as the one of Sacyr-Impregilo," a Milan-based analyst said on condition of anonymity.
The analyst said if the project incurred cost overruns a contractor with high equity and low debt like Bechtel could get financing more easily than an indebted one, making sure that works continued even if problems arose.
Although Sacyr sold its road toll business in a cash deal worth about 2.9 billion euros ($4 billion) in May, the building-to-services firm will still close the year with debts of 11 billion euros.
A contract as big as the Canal project would be a welcome shot in the arm. Sacyr leads the consortium with a 49 percent stake and Impregilo has 48 percent.
