Panama Canal Authority Finalizes Deal for Third Set of Locks
- Business & Finance
The Panama Canal Authority (ACP) and the consortium Groups Unidos por el Canal (GUPC) signed on August 1st the variation incorporating to the original contract the agreement reached in March for completion of the Third Set of Locks project.
“What remains now is to continue working with the commitment to complete the Expansion which is currently at a 78% progress,” said ACP Administrator Jorge L. Quijano.
The Expansion Program registers an overall progress of 78%, while the new locks project is currently 73% complete.
The consortium GUPC 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 signed in March a Memorandum of Understanding (MoU) establishing the framework for the completion of the Third Set of Locks project.
GUPC suspended work on the locks in February, due to a “cash-flow crisis” arising from $1.6 billion in cost overruns, which, according to GUPC, should be covered by the ACP.
According to ACP, the incorporation of this variation does not include any payment for cost overruns or claims. GUPC’s claims must be processed following the mechanisms established within the contract.
The project is expected to be complete by December 2015.
Press Release, August 4, 2014; Image: ACP