Panama Canal New Locks Project Resumes

February 21, 2014

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

Works restarted yesterday, said Panama Canal Administrator Jorge L. Quijano, and added: “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.”

Since works have resumed, ACP will proceed to pay GUPC the $36.8 million due for December invoices.

This preliminary agreement to resume works does not imply a negotiation on the alleged cost overruns claimed by the contractor. ACP reiterates that these claims must be process 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 negotiate during the next couple of days to come to an agreement that ensures the successful completion of the project.

[mappress]

Press Release, February 21, 2014