The consortium Grupo Unidos por el Canal (GUPC) plans to stop work on the new lock gates on 20 January, having issued a work suspension order on 30 December over a $1.6bn payment dispute on cost overruns.
Discussions between the Panama Canal Authority (ACP) and lead contractor Sacyr have yet to yield a solution to the dispute, which threatens to further delay the expansion of the key waterway.
“Currently, the production levels are low in the new locks project without any justification,” the ACP said on Sunday.
ACP said that GUPC only had the right under the contract to suspend work if payment has not been issued to the contractor, and it says this is not the case and that it pays GUPC within 15 days, well under the 56 days stipulated in the contract.
Meanwhile GUPC said the suspension might not take place on 20 January. "GUPC does not necessarily have to make any change in the status of the project tomorrow," it said in a statement on Sunday.
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