Tags: Panama Canal | construction

Initial Deal Reached to Resume Work on Panama Canal

Image: Initial Deal Reached to Resume Work on Panama Canal
Idle cranes at the Panama Canal construction site on Feb. 5.

Wednesday, 12 Feb 2014 09:37 AM

PANAMA/MADRID — The Panama Canal Authority said on Wednesday it had reached an initial agreement to resolve a dispute over cost overruns, raising the possibility work may start again on an ambitious and expensive project to widen the 100-year-old waterway.

"We have preliminary agreements, there are still some issues to resolve and we are working in that direction," the head of the Panama Canal Authority (PCA), Jorge Quijano, said.

He added that did not mean the Canal had abandoned the alternative of handing over the contract to a third party.

The consortium of builders, led by Spain's Sacyr, has stalled work on doubling the capacity of the canal while a dispute rages over who pays for $1.6 billion in cost overruns, which is also the amount the group says it needs to finish the project.

A spokesman for Sacyr declined to comment.

A source familiar with the situation said no agreements were signed as yet, but a deal could be completed soon.

A second source with knowledge of talks, who also declined to be named, said an agreement would likely center on a joint financing deal with both sides bearing some of the cost and involving fresh bank financing.

© 2017 Thomson/Reuters. All rights reserved.

 
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The Panama Canal Authority said on Wednesday it had reached an initial agreement to resolve a dispute over cost overruns, raising the possibility work may start again on an ambitious and expensive project to widen the 100-year-old waterway.
Panama Canal,construction
198
2014-37-12
Wednesday, 12 Feb 2014 09:37 AM
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