Panama Canal Contractor to Resume Work on Locks
The Panama Canal Authority announced that the contractor building new locks for the expanded waterway agreed to restart its construction project Feb. 20.
The canal authority known as ACP and the contractor, Grupo Unidos por el Canal, have been locked in a dispute over cost overruns that had slowed, and at times stopped, work on the $5 billion project.
ACP is intending next year to complete the addition of a third lane and capacity to accept many of the world’s largest ships.
The contractor includes a consortium of companies from Spain, Belgium, Italy and Panama. The dispute has been ongoing since early January, when the contractor first claimed that it was owed as much as $1.6 billion.
ACP’s statement said the contractor will receive $36.8 million. The parties also agreed over the next three days to address a schedule for delivery of remaining lock gates and a schedule for completing the work.
