Disappointment and anger in Italy over canal talks breakdown

IN ITALY there is disappointment and anger at Salini – Impregilo at the cessation of work on the Canal expansion, but the anger is directed not at the largely European consortium, GUPC but at the Panama Canal Authority (ACP).

The position of the ACP administrator Jorge Quijano, is described as "absurd," and the Italian construction giant hints at an internal political battle between Quijano and President Ricardo Martinelli who, up to the breakdown of talks between the consortium and the ACP, prophesied a hay ending to the conflict over $1.6 billion in overrun costs

Impregilo also suggests that the Canal authorities have maintained contacts with the American construction company Bechtel, who lost the contract the GUPC consortium whose main shareholders are Sacyr, Spain and Impregilo – Salini, Itly.

On Monday night, November 4, say reports from Italy political diplomacy came into play with the Prime Minister of Italy, Enrico Letta calling President Martinelli, after returning from an official trip to the Persian Gulf in which he called for investment in Italy, had a telephone conversation with Martinelli.
The conversation between the two presidents had favored “unlocking the dispute” over of the Panama Canal .

Nobody in Italy could imagine a radical breakdown of negotiations in the early hours of Tuesday after the deadline they had given the parties to seek a negotiated solution to the financial problems that dragged the project.

As confirmed to La Prensa, Italian sources at Italy’a Ministry Infrastructures said the breakdown, "has been an unpleasant surprise for everyone, including President Martinelli.” The Italian government expected a win at the talks. After the discussion between the two men, Letta and Martinelli “everything seemed resolved but the ACP disregarded the recommendations of Martinelli."