Panama Canal Authority is subjected to international arbitration for overruns

The state Panama Canal Authority and GUPC, led by the Spanish company Sacyr and the Italian Impregilo, will be submitted from today to an external arbitration in the International Chamber of Commerce of Miami, Florida, as reported by the newspaper El Pais.

Arbitration is about the additional costs in the inter-oceanic passage by the Group joined by the Canal SA (GUPC SA), the Spanish, Belgian, Italian and Panamanian contractor companies, responsible for the design and construction of the Third Canal´s Set of Locks.

In this dispute, the claim of capital increase the companies request will be clarified. This figure could reach 1,600 million dollars.

The work, which is valued at 5,250 million dollars this year was paralyzed by these additional expenses that builders claim by “unforeseen geological conditions,” which according to the companies, “forced them to use large amounts of additional resources.”