Canal expansion extras surpass original cost

WHEN the contract for the Canal expansion was first granted to the consortium Grupo Unidos por el Canal (GUPC) losing bidders in the United States said that the project could not be completed at the price submitted by the winners. Time has proved them expensively right.

GUPC delivered the completed third set of locks to the Panama Canal Authority (ACP) on June 25 but attached to the delivery was a bill for additional costs that  exceeds the value of the original contract.

GUPC has submitted claim  for an additional  $3.5 billion. .The value of the original contract, which was awarded to the consortium in 2009 was $3.1 billion.

There are $569 million in claims pending before a conflict resolution board and $527 million pending before an international arbitration panel, the final step in the claims process.

The ACP so far has paid the consortium the original $3.1 billion, plus an additional $364 million in additional costs it has recognized as valid.

The rest of the claims are yet to be submitted to the conflict resolution board or they are still being considered by the ACP.