No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeCanal WoesPanama Canal expansion to proceed no matter what, says official

Panama Canal expansion to proceed no matter what, says official

PANAMA CITY – Work to expand the Panama Canal will proceed despite a financial dispute that could derail the project, an official managing the major waterway said Saturday ahead of a key deadline.

The Grupo Unidos por el Canal (GUPC) consortium, led by Spanish builder Sacyr, has threatened to suspend the expansion work by Monday unless Panama pays for $1.6 billion in “unforeseen” costs.

“We are ready to deal with all eventualities, but I am sure that enlargement of the canal will go ahead with or without” the GUPC, canal administrator Jorge Quijano said.

“Our intention is to finish as quickly as possible, (even) if work is suspended; … we will complete the work no matter what,” he added at a ceremony marking the 100-year anniversary of the canal’s inauguration in 1914.

Attempts to resolve the dispute through dialogue and mediation efforts by Spanish and Panamanian authorities have failed so far, but “negotiations remain open,” Quijano said.

He added, however, that talks have begun with other companies in case the contract with GUPC falls through.

The consortium, tasked with building a third set of locks for the canal – the most expensive part of the expansion project costing $3.2 billion – has already “significantly” scaled back its activities, according to Quijano.

With a total price tag of $5.2 billion, the expansion work on the canal began in 2009 with the goal of being done by 2014 to coincide with the waterway’s 100th birthday.

It aims to make the 80-kilometer (50-mile) waterway, which handles five percent of global maritime trade, big enough to handle new cargo ships that can carry 12,000 containers.

But completion was pushed back to 2015 after a first disagreement between the canal authority and GUPC over cement quality.

In the current dispute, GUPC says it ran into unforeseen costs because the canal authority gave the builders the wrong information regarding the area’s geology.

But the canal authority has countered that the contractor’s claims “lack any foundation.”

The GUPC consortium includes Impreglio of Italy, Belgium’s Jan de Nul and Constructora Urbana of Panama.

Trending Now

Costa Rica Law Now Requires Corporations to Register an Email for Legal Notices

Costa Rica has recently approved a very important law which establishes a new obligation for commercial corporations, and that obligation is that they must...

Costa Rica’s New Extradition Law Faces Limits in Tackling Organized Crime

Costa Rica’s Legislative Assembly passed a constitutional amendment in May, allowing the extradition of nationals for international drug trafficking and terrorism. With 44 of...

Costa Rica Fights Drug Trafficking as Transit Hub Despite Resource Strains

Costa Rica remains a key route for drugs heading to North America, despite efforts to crack down on trafficking. The U.S. Department of State’s...

Money Laundering in Costa Rica: Key Methods and Challenges

Costa Rica’s geographic position and economic openness make it a target for money laundering, primarily driven by drug trafficking, according to the 2025 International...

Costa Rica Video Footage Reveals Strange Deer-Bird Interaction

The best part about camera trapping is the moment you pull the SD card out of the camera and stick it in the laptop...

Costa Rica’s Ocean Forecasting System Protects Cocos Island Marine Life

Costa Rica has rolled out a new ocean forecasting system on Cocos Island, aiming to improve marine safety, support conservation, and strengthen the country's...
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica