Having glossed over the Bechtel report on technical deficiencies in the very cheap proposal made by Grupo Unidos por el Canal for the Canal expansion, the project could now turn out to be very expensive for the ACP.
At the time of the award of the construction works on the Panama Canal expansion to the consortium Grupo Unidos por el Canal (GUPC), the efforts made by the U.S.
The facts seem to bear out what was said in 2009 -according to WikiLeaks- by the U.S. ambassador, who described Sacyr as "a bankrupt company sustained only by the Spanish government."
The dialogue regarding the cost overruns in the construction of the canal expansion project between the Panama Canal Authority (ACP) and the consortium Grupo Unidos por el Canal (GUPC)-initiated by the intervention of the Spanish Minister of Development- has been interrupted, and it is not longer the Spanish group Sacyr the spokeshead but instead it is now the other majority company in the Consortium, Italy's Impregilo, which is asking - via the media- for $1 billion from the ACP, while keeping up its threat to stop the work.
The Spanish company Sacyr had already counted as actual income amounts the cost overruns that the Panama Canal Authority has refused to pay.
An article in Elpais.com reports that "Sacyr has counted its chickens before they've hatched. The consortium led by Spanish construction group has been recording in their accounts the additional costs incurred in the execution of the works to expand the Panama Canal as income, even though such items are not recognized by the Authority of the Panama Canal (ACP). Sacyr has confirmed the use of this accounting method, validated by the auditor, in response to a request from the National Securities Market Commission (CNMV) regarding their accounts. Although the construction group submitted its response to the supervisor last week, it conveyed an image of normalcy that gave no indication that they were about to suspend the most important work that is currently being executed."
The threat of paralyzing the work of the third set of locks of the Panama Canal is keeping maritime and port operators around the world on tenterhooks.
The conflict between the construction consortium (GUPC) headed by the Spanish Sacyr and the Panama Canal Authority (ACP), which originated over the demand for the first payment of $1.6 billion in cost overruns and the ACP's rejection of that claim, threatens to extend the opening of the expanded waterway, through which 5% of the world's maritime cargo passes, to beyond 2015.
In a counterproposal to the $100 million offered by ACP, the consortium constructor is calling for an advance of $400 million and a long-term agreement.
The proposal by the Panama Canal Authority (ACP) to make a joint contribution of $283 million and avoid suspension of the construction of the third set of locks has not convinced the representatives of Grupo Unidos por el Canal (GUPC).
The construction consortium Grupo Unidos por el Canal is demanding $1.6 billion for cost overruns and is threatening to stop the works.
Citing the existence of undetected geological faults Grupo Unidos por el Canal (GUPC), is demanding from the Panama Canal Authority (ACP), payment of $1.6 billion for cost overruns caused by alterations to the original technical conditions of the tender awarded to GUPC.
In the Caribbean coast, in the area granted in concession by Panamanian government, the mining company has instructed the Spanish builder Sacyr Vallehermoso to construct a deepwater port.
An article in Laprensa.com reports that "Minera Panama has commissioned the construction of a deepwater port on the Caribbean coast of Panama by the company Sacyr Vallehermoso, the first contract obtained by the Spanish construction in this country since construction of the Canal Expansion. "
The date of the tender for the design and construction of the southern terminal at Tocumen International Airport has been postponed until August 13, 2012.
The administration of the airport terminal, at the request of the companies involved in the project, has agreed to postpone the ceremony for the opening of bids scheduled for August 3.
Among the thirty-one companies who participated in the approval meeting are Sacyr, Odebrecht and Riva.
Panama's Comptroller General has disallowed complaints submitted by the two bidding groups: Samsung Construction and Trading Corporation, and Sacyr / Interplus.
The complaints submitted claim that the evaluating committee did not act properly in awarding most points to the company FCC.
Prensa.com reports that, "Samsung stated that FCC's candidacy contained legal failings while the Spanish companies felt they had not received enough points".
In order to refinance its debts the Spanish company Sacyr Vallehermoso will have to mortgage its assets including the subsidiary company headed by Groupo Unidos Por el Canal (United Group for the Canal), which is building the new locks.
The company, according to some experts, sought new revenue linked to Pemex to take over the presidency of Repsol.
Seven consortia have submitted bids for the construction and equipping of a market in Panama City, a project worth over $100 million.
The company's suppliers and their proposals are: Facilities and Services SACODEPO ($118, 900,000), SA Sacyr ($126,447,000), MCM Global ($124,999,000), Assignia-Cocige ($126,495,000), SA-Cleop Elecnor SA ($109,968,000), Omega Engineering ($126,500,000) and the Consortium Arranz kinase-Riva SA ($120,240,000).
Only two consortiums have presented offers for the design and construction of the first line of the Panama Metro.
The consortium led by Impregilo also includes Astaldi, Ghella and Ansaldo Breda Trains, while that led by Odebrecht also comprises Spanish owned FCC Construcción and Alstom Trains.
A third consortium, "Consorcio CIMA", made up of Acciona, Mitsubishi and ICA, did not tender for the contract valued between $1 and $1.5 billion.
The Colombian company Argos Cement has signed a contract to provide cement and other products to support the canal expansion.
According to information provided by Argos, the cement will be produced at the company’s Panama site, complemented as necessary by additional volume from the plant Argos has in Cartagena, Colombia.
The company plans to begin supplying cement in December and will continue until the first quarter of 2014.
Silvio Berlusconi and Ricardo Martinelli inagurated the start of the excavation works at the Atlantic area of the Panama Canal Expansion project.
Italy’s Prime Minister Silvio Berlusconi stated he was honored to be present at this event. Italian Corporation Impregilo is one of the companies responsible for the excavation phase, as port of a consortium that also includes Spanish company Sacyr.