Americas News
Dispute Threatens Panama Canal Expansion Work
A dispute over cost overruns threatens to derail the expansion of the Panama Canal, with the consortium handling the project threatening to stop work, the BBC reports.
Sacyr, the Spanish builder that leads the consortium, known as the Grupo Unidos por el Canal (GUPC), has given 21 days' notice to resolve the dispute over the $1.6 billion overrun.
The Panama government argues that GUPC should respect the existing contract and that the extra costs were the result of events that should be seen as normal for this type of project.
President Ricardo Martinelli said he could push European leaders to put pressure on the consortium.
"I will go to Spain and Italy to demand these governments take moral responsibility," he said.
The total cost of the project, which is nine months behind schedule, with an estimated completion date in June of 2015, is now expected to be $5.2 billion.
"No matter what kind of pressure is exercised against the ACP (Panama Canal Authority), we maintain our demand that Grupo Unidos por el Canal respect the contract that they agreed to and signed," said canal administrator Jorge Quijano.
Slower-than-expected work on locks being built by GUPC has repeatedly delayed the expansion project, which will open the waterway to larger vessels.
