No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeCanal WoesPanama reports some progress in canal dispute

Panama reports some progress in canal dispute

PANAMA CITY — Panama has reached partial agreements with construction companies that halted work to expand the Panama Canal in a dispute over a huge cost overrun, its administrator said Wednesday.

Agreements in principle have been reached on some issues although others remain outstanding. But the Panama Canal Authority will not negotiate forever and does not rule out resuming the mega-project on its own in a week if a final accord is not reached, administrator Jorge Quijano told reporters.

He spoke after holding videoconference talks Tuesday with executives of the Spanish-led consortium hired to expand the canal linking the Atlantic and Pacific so it can handle larger ships.

Despite the progress, “that does not mean we have given up on the other alternative, which is to take charge of the project ourselves,” Quijano said.

He gave no details of what points the two sides had agreed on and what the remaining sticking points were.

“Our patience has limits and we really feel this has to end in a week at the most,” Quijano said.

Work to expand the canal was suspended last week by the GUPC consortium made up of construction companies Sacyr of Spain, Italy’s Salini-Impreglio, Belgium’s Jan de Nul and Constructora Urbana of Panama.

The dispute is over $1.6 billion in cost overruns in the project, the main part of which is to equip the canal with a third set of locks.

GUPC wants Panama to add that sum to the initial contract fee of $3.2 billion.

The century-old waterway handles five percent of global seaborne trade.

GUPC claims unforeseen geological difficulties have forced them to spend much more on cement than expected. They say that they based their estimates on data provided by the Canal Authority that were incorrect.

The canal expansion is one of the world’s most ambitious civil engineering projects and was due to be completed this year.

But the builders have said completion may now be delayed up to five years.

The original canal, built by the United States mostly with workers brought in from the Caribbean, was opened in 1914.

Trending Now

El Salvador at Center of Controversial U.S.-Venezuela Detainee Exchange

Salvadoran President Nayib Bukele received the 10 Americans exchanged on Friday between Washington and Caracas for 252 Venezuelans who had spent four months in...

Keylor Navas Joins Pumas After Controversial Exit from Newell’s

Costa Rican goalkeeper Keylor Navas is officially the newest player for Pumas UNAM, but his move from Argentina’s Newell’s Old Boys has been anything...

Costa Rica’s Poás Volcano Park Reopening to Tourists With Safety Measures

The Poás Volcano National Park will reopen its doors to tourism starting July 30, after  scientific entities reported a decrease in volcanic activity. This was...

Costa Rica Court Sanctions Road Official Over Delayed Wildlife Crossings

Costa Rica’s wildlife faces perils, as authorities have continously failed to build wildlife crossings. Nonetheless, the Constitutional Court has taken a firm stance in...

Malcolm-Jamal Warner’s Drowning in Costa Rica Ruled Accidental

The death of American actor Malcolm-Jamal Warner has been confirmed as accidental drowning, according to Costa Rica’s Judicial Investigation Agency (OIJ). Warner, 54, was...

Costa Rica Fails to Meet Human Rights Standards for Deportees

The Ombudsman's Office has confirmed that Costa Rica was unprepared to provide adequate care for deportees who have entered the country since February. This...
spot_img
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