Canal Expansion: ACP Cites Violation of Contract

The Consortium announced that for now it will not suspend the works, but the ACP is warning that the pace of construction has dropped by 70%.

Monday, January 20, 2014

The consortium Grupo Unidos por el Canal, led by the Spanish Sacyr announced it will postpone the work stoppage until the Panama Canal Authority (ACP) agrees to assume cost overruns, but in the view of the ACP there is violation of the contract because the low levels of production have no justification.

From a press release by the Panama Canal Authority:

"The (ACP) warned that the suspension announced for Monday January 20th by Grupo Unidos por el Canal (GUPCSA) is invalid without merit and is contrary to the contract for the construction of the Third Set of Locks.

Currently, production levels in the project are low without any justification.

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More on this topic

Canal Expansion: Agreement to Finish Work Confirmed

February 2014

The agreement between the Panama Canal Authority and the consortium GUPC has been framed within the conditions of the original contract and rules out paying for cost overruns which are outside of the contract.

The Third Set of Locks project will be completed within the terms of the contract, as the Panama Canal Authority has demanded since the beginning.

Canal Expansion: The Return of Disagreements

February 2014

The Canal Authority has reported that the preliminary agreements reached days ago have failed to materialize.  

The ACP considered this week "critical" in making a decision whether to restart the project restarting as soon as possible.

From a press release issued by the Panama Canal Authority:

Canal Expansion: Construction Company Confirms Stoppage

February 2014

Grupo Unidos por el Canal has announced the suspension of works, with suppliers and workers appearing as the first victims.

There are about three hundred subcontractors and suppliers to the construction consortium GUPC and about 3000 workers, the first to be directly affected by the stoppage of work on the expansion of the Canal, as the company declares insolvency after being unable to pay debts and wages.

Canal Expansion: Date of Stoppage Confirmed

January 2014

The construction consortium has reaffirmed its ultimatum to stop the works if there is no agreement with the Panama Canal Authority.  

An article in Prensa.com reports that "Grupo Unidos por el Canal (GUPC), the company under contract for building the third set of locks, is upholding its ultimatum given to the Canal Administration to suspend the most important works on the expansion project, from next Monday. "

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