No agreement and Canal expansion work stops

WORK on the Panama Canal expansion program has stopped at the Pacific and Atlantic ends, and 10,000 jobs are in jeopardy.

The administrator of the Panama Canal (ACP) Jorge Luis Quijano told a packed press conference on Tuesday, May 5, that the consortium responsible for the construction of the third set of locks has instructed its employees and contractors to down tools in the Atlantic and Pacific on May 5.

"Today they executed the threat" Quijano said at a packed news conference.
Quijano said that the ACP will act with a cool head, and “from now a careful decision-making process begins".
Midnight Monday, January 4 was the deadline given by Grupo Unidos por el Canal (GUPC), for the parties to reach agreement and resolve the crisis sparked by their insolvency.
Quijano said that:" The distance between the parties was too big mainly because of the claims of GUPC against Panama and the Canal."

"GUPC has maintained an inflexible position," Quijano said. 

Quijano added that GUPC insisted on negotiating outside of the contract signed between the two sides, which the authority was unwilling to do.

Meanwhile, GUPC issued a strongly worded communiqué blaming the ACP for the breakdown of negotiations.
The consortium notes that 10,000 jobs are “in imment danger” and that "without an immediate solution, ACP and the Panama Canal will face years of disputes before national and international courts on the steps that led to the project to the brink of failure."
Citing estimates from the bonders of the project, Zurich American, GUPC spoke of a three to five years delay in the completion of the project a situation that "will leave an ongoing shadow on the ACP and the Panama Canal " and cause a " impact on ports and businesses across America and the world who have made investments and plans based on the expansion project.”
Quijano responded at the press conference: “We can still finish the work by 2015, with or without GUPC “.
No agreement and the lack of liquidity of the consortium, alleging cost overruns in the work for $1.6 billion ,leaves GUPC facing "immediate failure " to pay subcontractors in Panama and other countries, reports La Prensa
Despite the tone of the statement, GUPC leaves open the possibility of an agreement that, from his point of view, "offers the only way to end the expansion promptly and efficiently.”
Similarly, Quijano said the door remains open for a possible approach, but also acknowledged that it has eroded the trust between the parties.
Commentators point out that extensive delays in completing the project will throw stress on government budgetary plans which had included projected increased revenues as larger ships passed through. It will also lose tax income from 10,000 workers and many businesses associated with the project will be hit.

Projections for ports in the United States that have been preparing facilities for  the anticipated arrival of post Panamax ships will also be hit by any major  delay.