The new locks contractor Grupo Unidos por el Canal (GUPC) has accepted Panama Canal Authority's (ACP) demands to restart the construction of the Third Set of Locks immediately after work stopped more than a week ago in a cost overrun dispute, according to Shipping Gazette.
As soon as work is resumed, ACP will pay the consortium US$36.8 million for December invoices to ensure that GUPC cancels pending payments and obligations to suppliers, said the ACP commuique.
The parties also agree to discuss in the next 72 hours other points such as the dates for the delivery of the gates to the giant third locks, an implementation schedule for the remainder of the works, a timetable of repayment moratorium and other key aspects for the project's development, said the canal authority statement.
The decision was made during telephone conversations between the ACP and the CEOs of the companies in the consortium, but there are still outstanding areas of disagreement, ACP said.
The canal expansion project, to double the capacity of the waterway to accommodate 13,000-TEU ships from the 4,800 TEUers it handles today, was to cost $5.25 billion, but cost overruns have increased the price to nearly $7 billion.
The GUPC consortium is formed by companies Sacyr Vallehermoso of Spain, Impregilo of Italy, Jan de Nul Group of Belgium and Panama's Constructora Urbana.
As soon as work is resumed, ACP will pay the consortium US$36.8 million for December invoices to ensure that GUPC cancels pending payments and obligations to suppliers, said the ACP commuique.
The parties also agree to discuss in the next 72 hours other points such as the dates for the delivery of the gates to the giant third locks, an implementation schedule for the remainder of the works, a timetable of repayment moratorium and other key aspects for the project's development, said the canal authority statement.
The decision was made during telephone conversations between the ACP and the CEOs of the companies in the consortium, but there are still outstanding areas of disagreement, ACP said.
The canal expansion project, to double the capacity of the waterway to accommodate 13,000-TEU ships from the 4,800 TEUers it handles today, was to cost $5.25 billion, but cost overruns have increased the price to nearly $7 billion.
The GUPC consortium is formed by companies Sacyr Vallehermoso of Spain, Impregilo of Italy, Jan de Nul Group of Belgium and Panama's Constructora Urbana.