GUPC Ups Panama Canal Costs Overrun Claim to USD 5.7 Bln
Grupo Unidos por el Canal (GUPC), a consortium that built the Expanded Panama Canal, has increased its claim related to cost overruns in the expansion of the waterway to USD 5.67 billion, Spanish media reported.
GUPC, which includes Spain’s Sacyr, Italy’s Salini – Impregilo, Belgium’s Jan De Nul and Panama’s Constructora Urban, SA (CUSA), was awarded the USD 3.2 billion project to expand the canal in 2009. However, the unplanned costs occurred.
The new figure of USD 5.67 billion appears in an annual report issued by ACP in December and represents the maximum amount GUPC will claim.
In December, GUPC made two new requests for arbitrage with the International Court of Arbitration in Miami. Consequently, the amount increased from USD 3.28 billion to USD 5.67 billion, El Pais referred to the report issued by the ACP.
The unplanned costs occurred due to the insufficient quality of the basalt, terrain issues, strikes and changes in regulations.
In 2016, a Dispute Resolution Board (DAB) dismissed a USD 99 million complaint filed by GUPC for cost overruns in the construction of the third set of locks. The DAB, formed to hear disputes arising between the Panama Canal Authority (ACP) and the contractor during the execution of design and construction of the third set of locks, is comprised of members of GUPC and the ACP.
World Maritime News Staff