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Panama Canal Locks Project Resumes

Feb. 21, 2014
Cost overruns still a sticking point.

The Panama Canal Authority (ACP) reported yesterday that Grupo Unidos por el Canal. S.A. (GUPC) has resumed work on the new locks project.  

“The consortium has guaranteed that it will continue working, which was our main objective so we can move forward and discuss other issues for a longer-term agreement,” said Panama Canal Administrator Jorge L. Quijano.

With work resumption, ACP will pay GUPC the $36.8 million due for December invoices. However, ACP added that this preliminary agreement to resume work does not imply a negotiation on the alleged cost overruns claimed by the contractor. ACP reiterates that these claims must be processed through the mechanisms within the contract.

The consortium is formed by Sacyr Vallehermoso, S.A (Spain), Impregilo, S.p.A. (Italy), Jan de Nul Group (Belgium) and Constructora Urbana, S.A. (CUSA) (Panama).

The parties will continue to negotiations during the next few days to come to an agreement that ensures the successful completion of the project, ACP stated in a press release.