The Panama Canal gives one week to Sacyr to reach an agreement
Posted On 13 Feb 2014
The administrator of the authority of the Canal of Panama (ACP), Jorge Quijano, announced that the financial conflict with the Grupo Unidos por el Canal (GUPC), dispute that from February 5 has paralyzed the enlargement works of the inter-oceanic canal, must be definitely resolved before a week.
The financial conflict began on January 1, when the consortium announced that it would suspend the works on January 20 if the State Agency refused to finance 1.6 billion dollars (1.2 billion euros) for additional costs in the construction of the locks to expand the route. Eventually, the threat raised its tone on February 5. Since then, the parties released proposals and counterproposals centered on how to finance the end of works, while the arbitration resolved the matter of the cost overruns.
One of the financial options, he said, is that both parties contribute with US $ 100 million each, that a guarantee of compliance by $ 400 million becomes a loan and the ACP pay to the GUPC a pending debit of December 2013. A key piece is that Zurich American, as carrier of the project, accept to participate in the plan.