Panama Canal may take control of completion of locks

“We would like to reassure our customers that the contract was well drafted and includes guarantees that will allow the completion of the new locks, even if the ACP needs to step in to assume control of the project and deliver it in the shortest possible time,” said Jorge Quijano, administrator of the Panama Canal.

On the 30 December the contractor building the locks for the expanded Panama Canal, Grupo Unidos por el Canal (GUPC), issued a suspension of works notice from 20 January over $1.6bn in additional costs it says it is owed by the ACP.

The canal authorities said the notice lacked legal basis, was not clear, and gave no reasons to suspend works.

“Our customers are our number one priority and we will seek to resolve this conflict in the best possible manner within the legal framework of the contract to ensure that the construction continues and that the expansion programme is completed,” Quijano said.

The ACP repeated that the only channels to settle claims were clearly established in the contract signed by GUPC.

The delayed expansion of the canal is 72% complete and currently scheduled to start operations in the second half of 2015.