Canal expansion consortium must repay $847 million

 
970Views 3Comments Posted 12/12/2018

Grupo Unidos por el Canal (GUPC), the consortium that built the expansion locks of the Panama Canal must return $548 million to the Panama Canal Authority (ACP), according to an award from the International Chamber of Commerce in Miami.

Sacyr, which has 41% in GUPC, must pay  $255 million (225 million euros, at the current exchange rate), say  Spanish media reports.

The payment date of the advances - whose disbursement is guaranteed by letters of credit - was established by June 2018. However, GUPC filed an arbitration to question the date of payment of all the advances.

In January 2017, GUPC requested "an arbitration to unequivocally determine that the repayment of these advances must be produced in accordance with the arbitration awards that must dictate which party is responsible for the unforeseen costs that arose over the course of the year." of the project".

GUPC, which in addition to Sacyr includes the Italian Impregilo, the Belgian Jan de Nul, and the Panamanian Cusa, was awarded the construction of the third set of locks in 2009 for $3.118 billion. However, after completing the work it submitted claims for alleged cost overruns that exceed $5 billion.

 



Comments 3

user
sral

As long as bribes from the contract winner are almost required, the many great American construction companies will always be shut out. Looks like the Chinese will have free reign from now on for mega-projects. State sponsored corruption that nobody can beat. Sad.

6 months ago
user
RedNekTex

Surely you meant throw out the highest and lowest bribe?

6 months ago
user
Doug

When panama learns how to run a bidding job it will be great .you tell tbose bidding that both the high and low bid are thrown out .it makes those bidding place real true bids

6 months ago
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