Panama Canal Authority, Contractor Strike Long-Term Deal on Expansion, Says Contractor
The Panama Canal Authority (ACP) and the consortium commissioned to construct the canal expansion project, Grupo Unidos por el Canal. S.A. (GUPC), signed an agreement on March 14 for long-term completion of a third set of locks, said GUPC in an emailed press release, following months of gridlock over a $1.6 billion cost overrun dispute. The agreement targets completion of the project by the end of 2015. Both parties are obligated to contribute $100 million in financing, according to the release. GUPC is also coordinating $400 million in financing from international lenders and an insurer, which signed the agreement, said the release.
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“The claims for cost overruns will continue its proceedings on arbitration agencies provided in the contract. This way, the Panamanian people, the country and world trade will benefit from the expansion,” said GUPC. “The project of the Third Set of Locks, one of the most important infrastructure projects in the world, already has advanced the works to 70 percent completion. The consortium is moving to finish the works with high quality and efficiency.” 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. An ACP official said Constructora Urbana has yet to sign the agreement. Once Constructora Urbana signs, ACP will release a statement, said the official.