Cost overrun clash endangers huge Panama Canal extension project
Source: Reuters
Work on the massive Panama Canal extension project may be suspended after a clash between the builders and the Panamanian authorities about $1.6 billion in cost overruns, according to a statement from the building consortium on Wednesday.
The cost overruns on the $3.2 billion canal extension, one of the world's largest construction contracts, should be met by the Panama Canal Authority (PCA) under the terms of the contract, argued the consortium comprised of Spain's Sacyr, Italy's Impregilo, Belgium's Jan De Nul and Panama's Constructora Urbana, SA.
However, the PCA rejected the complaints by the consortium, known as Grupo Unidos por el Canal.
"Regardless of what kind of pressure is put on the PCA, we will maintain our demand that Grupo Unidos por el Canal respects the contract that they themselves accepted and signed," the head of the PCA, Jorge Quijano, said in a statement.
Read more: http://www.reuters.com/article/2014/01/01/sacyr-panama-idINL6N0KB17320140101
