Sunday, July 5th31.3°C
26667

Panama Canal chief reports agreements in principle to solve some parts of expansion dispute

PANAMA CITY - Panama Canal Administrator Jorge Quijano said Wednesday the agency has reached tentative agreement with contractors on some of the issues that have stalled work on the biggest expansion of the waterway in a century.

But Quijano also told a meeting of Panama's Chamber of Commerce and Industry that the Panama Canal Authority might take over the project if no final agreement is reached this week.

The canal chief said he spoke by telephone Tuesday with executives from Grupos Unidos por el Canal, the consortium led by Spain's Sacyr SA and Italy's Salini Impreglio SpA. It has been seeking to have the canal authority pay for $1.6 billion in cost overruns on what had been planned as a $3.1 billion chunk of the canal project.

"We had agreements in principle on several of the topics," he said, without giving details. "We still have some topics to resolve and we are working in that direction."

"That is not to say that we have abandoned the other alternative, which is that we take over the work ourselves," said Quijano. "We are preparing more each day in case that is necessary."

Sacyr declined Wednesday to comment on the report of agreements in principle.

Quijano said that one question to be resolved is if insurer Zurich American, which holds a guarantee bond of at least $450 million, will play a role in financing renewed work.

"Zurich has not yet expressed itself in a conclusive way. We know that they have the willingness to do so," he said.

The dispute threatens to delay a project that has led ports and shipping companies around the globe to make costly new investments to take advantage of the ability to move larger ships through a waterway that already handles 5 to 6 per cent of world commerce.

The canal authority and the construction consortium blame each other for the overruns. They were negotiating how to pay for the unplanned extra costs when talks broke down.

Other foreign contractors and project managers have expressed an interest in completing the 30 per cent of work that remains on the third canal lock, according to canal officials.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14682.39+44.40
S&P CDNX670.58-1.00
DJIA17730.11-27.80
Nasdaq5009.21-3.91
S&P 5002076.78-0.64
CDN Dollar0.7944+0.001
Gold1173.00+10.00
Oil55.69-1.92
Lumber288.50+0.40
Natural Gas2.775-0.047

 
Okanagan Companies
Pacific Safety0.17+0.00
Knighthawk0.010.00
QHR Technologies Inc1.52-0.03
Cantex0.035-0.015
Anavex Life Sciences0.455+0.004
Metalex Ventures0.075+0.010
Russel Metals22.78-0.09
Copper Mountain Mining1.17+0.03
Colorado Resources0.09+0.03
ReliaBrand Inc0.006+0.000
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.165+0.005
Decisive Dividend Corporation3.00+0.50

 





FEATURED Property
20735461796 Birkdale Avenue
5 bedrooms 4 baths
$998,500
more details
image2image2image2
Click here to feature your property
Please wait... loading


Active listening

Has this ever happened to you? You had an initial meeting with a prospect. You asked that prospect what seemed to be all the right questions. You had what felt to you like a good conversation, and bas...


The price of money

Money is not a commodity. By definition, a commodity is a generic product that is bought and sold on price alone. Money, Canadian bills for example, look the same, smell somewhat the same, and are ava...


TFSA strategies

Photo: Thinkstock.comThe federal government has increased the annual contribution limit of Tax-Free Savings Accounts (TFSA) to $10,000. Going forward, the annual limit will no longer be indexed to inf...

_



26376




Member of BC Press Council


26706