At a time when the third set of locks is 91% complete, the Italian company Salino Impregilo is arguing that "... as a result of the alleged violations (agreement on the Promotion and Protection of Investments signed in 2009 between the two countries) the company suffered in their role as "Investor" - additional costs in 2000 estimated 2.2 billion dollars.
It has cited compensatory damages, loss of return on investment, and financing interest and value, loss of business opportunities, management time costs and employment, among other things. "

"... With a few months left to complete construction, most of the claims channeled by the contractor are being processed with the ACP, where they could be resolved in the first instance or taken to the Conflict Resolution Board in the second instance; or arbitration with a tribunal in Miami, in the United States, which is governed by the rules of the International Chamber of Commerce. "

Sources consulted by Prensa.com told the media that "... It is surprising that when the project for the third set of locks is 91.3% complete, Salini has appeared from nowhere to sue the State. "

Source: Prensa.com

More on this topic

Canal Expansion: Negotiations Break Down

February 2014

The construction consortium is insisting that the Panama Canal Authority cofinance the $1.6 billion cost overrun while they wait for a decision from the arbitration process over who should pay.

Despite the optimism expressed by President Martinelli himself over the latest timeframe to be agreed, negotiations between the consortium Grupo Unidos por el Canal (GUPC) and the Panama Canal Authority (ACP), have been called off, even though both sides have said they will continue to seek solutions to the problem.

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.

Canal Expansion: Between a Rock and a Hard Place

January 2014

The construction consortium has rejected the proposed solutions one by one, as they know that being replaced would be more expensive for the ACP than to acquiesce to its demands.

EDITORIAL

The alleged light at the end of the tunnel that led to an agreement in principle to resolve the alleged illiquidity of Grupo Unidos por el Canal (GUPC), was dimmed when the consortium led by Sacyr and Impregilo returned to its extremist position: Pay the overruns of $1.6 billion, or the works will be halted.

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).