Panama Canal Contractor Formally Resumes Expansion Construction
The contractor consortium Grupo Unidos por el Canal. S.A. (GUPC) resumed work Feb. 20 on the embattled Panama Canal expansion project, GUPC and the Panama Canal Authority (ACP) said in separate press releases. The ACP pledged to pay on Feb. 21 the agreed upon $36.8 million for GUPC's December payments and obligations. ACP previously refused to pay the December invoices until work resumed, said an ACP source. The two sides continue to dispute $1.6 billion in cost overrun.
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“This preliminary agreement to resume works does not imply a negotiation on the alleged cost overruns claimed by the contractor,” said ACP. “ACP reiterates that these claims must" process through contractual mechanisms. GUPC is continuing to negotiate a long-term agreement that will provide adequate funding and enable completion of the third set of locks by 2015, according to a translated email statement released on Feb. 21. GUPC is led by the Spanish building firm Sacyr of Spain, and also includes Salini-Impregilo of Italy, Jan De Nul of Belgium and Constructora Urbana, SA of Panama.