Another Judgment in Favor of the Panama Canal

GUPC, the consortium in charge of the Canal expansion, must return $848 million in advances to the Panama Canal Authority.

Friday, December 14, 2018

From the Panama Canal Authority press release:

December 12th, 2018. Contractor of the Design and Construction Contract for the Third Set of Locks of the Panama Canal Expansion Program, Grupo Unidos por el Canal, S.A. (GUPCSA) and its shareholders filed an appeal against the ACP under the Rules of Arbitration of the International Chamber of Commerce (ICC), based in Miami, United States. Through this arbitration, GUPCSA requested the Arbitral Tribunal to declare that the Advances granted by the PCA for the execution of the Contract had not expired and were therefore not effective and enforceable until all its claims were resolved in arbitration.

Today, December 12th, 2018, the Panama Canal Authority has been notified of the Arbitral Award issued within such Arbitration, in which the Arbitral Tribunal established that:

-GUPCSA shall pay the ACP the first advances totaling USD547,958,819.42; and the additional advances totaling USD299,671,507.68, totaling USD 847,630,327.10 million.

Read full press release (In Spanish).



More on this topic

Ruling in Favor of the Panama Canal

July 2017

The consortium GUPC, the builder of the third set of locks, will have to compensate the Canal Authority with $25 million for costs incurred in the arbitration process.

From a statement issued by the Panama Canal Authority:

The Arbitral Tribunal, constituted in accordance with the arbitration rules of the International Chamber of Commerce (ICC), issued its final decision in favor of the Panama Canal Authority (ACP) with respect to the law suit over the temporary cofferdam at the entrance to the Pacific. Grupo Unidos por el Canal, S.A. (GUPC) and its shareholders filed claims totalling over B / .192.8 million. GUPC also requested an extension of time. All of the claims were dismissed.

Canal Expansion: International Arbitration with GUPC

March 2015

The Panama Canal Authority has requested a taking the mater to international arbitration in order to nullify the claim that favors Grupo Unidos por el Canal with $233 million.

From a statement issued by the Panama Canal Authority (ACP):

The Panama Canal has requested an international arbitration of the claim by the contractor Grupo Unidos por el Canal SA (GUPCSA) associated with a basalt and concrete mixture used in the construction project for the new locks on the waterway.

Canal Expansion: Constructor's Counterproposal

January 2014

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).

Problems With Redevelopment Works on Panama Canal

January 2014

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.

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