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Panama Canal Expansion: Contractor’s Cost Overruns Claim Dismissed
PANAMA CITY (Reuters)– A conflict resolution board rejected a $100 million problem for expense overruns by the consortium that developed the 3rd collection of Panama Canal locks, component of a $5.4 billion growth finished in June, the river authority claimed on Friday.
The Panama Canal Authority claimed in a declaration that the board turned down an issue last month asking the authority to cover expense overruns by Grupo Unidos Por el Canal (GUPC), a consortium led by Spain’s Sacyr and Italy’s Impregilo.
The board is consisted of participants of the Panama Canal Authority and the consortium.
The problem existed by the consortium for “unforeseeable physical conditions” which it claimed added to greater than $3.5 billion in expense overruns.
The consortium will likely appeal the choice with a worldwide court of adjudication in Miami.
An agent of GUPC in Panama might not be right away grabbed remark. (Reporting by Elida Moreno; Writing by Natalie Schachar; modifying by Grant McCool)
( c) Copyright Thomson Reuters 2016.