Canal Expansion: Builders Talk About Bankruptcy

The companies in Grupo Unidos por el Canal "would like it if each of the consortium members could make a claim directly with the Canal authority and not through GUPC, in the case it files for bankruptcy."

Wednesday, July 30, 2014

The announcement was made by the administrator of the Panama Canal Authority (ACP), Jorge Luis Quijano, which comes at a time when the there is a remergence of the issue of claims for increased costs that led to the stoppage of the works during the past year.

An article on Nacion.com reports that "... The information comes a day before the deadline for the ACP and GUPC to sign a final agreement based on the Memorandum agreed last March, which will allow for completion of the third set of locks in December 2015. "

"... The ACP believes that the consortium must be kept up to date and active in order to fulfill its responsibilities. "

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More on this topic

Canal Expansion: 8 Out of 16 Gates now ready

June 2014

The date of completion of the works will still be the end of 2015, with attempts being made to make up for lost work days during the recent general strike of construction.

Despite the progress made in the project to date, the challenge for the canal administration and for for Consortium Grupo Unidos por el Canal, in charge of the work, will be to meet the deadline, after work was paralyzed for another two months.

Canal Expansion: Agreement Depends on Insurer

February 2014

The possibility of a joint injection of $200 million agreed between the parties now depends on the insurer Zurich to contribute $400 million as a deposit.

The Panama Canal Authority (ACP) and Grupo Unidos por el Canal (GUPC) have reached a tentative agreement that includes the co-injection of $200 million, the payment by GUPC of a bill that is due, and extending the term of repayment of funds advanced by the ACP.

Canal Expansion: The role of Zurich Insurance Firm

February 2014

Apart from any agreements which could be made by the Consortium and the Panama Canal Authority regarding the contract, the last word belongs to the insurer of the project, Zurich.

In the case of the Panama Canal expansion, the main focus will be on determining which party is the one that is in breach of contract, the Panama Canal Authority (ACP) or the consortium Grupo Unido por el Canal (GUPC).

Canal Expansion: Insurer Opposed to ACP

January 2014

The Zurich insurance company will not disburse the bond to complete the work if the ACP terminates the contract with the consortium Grupo Unidos por el Canal.  

The insurance firm Zurich, which holds a performance bond for the work for $400 million, would not be willing to honor the guarantee if the Canal Authority completes the work using another contractor, part of the ACP's plan B which it is considering.

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