Canal Expansion consortium puts screws on ACP

THE EUROPEAN Consortium Grupo Unidos por el Canal (GUPC), that built the third set of locks for the Panama Canal expansion, has not given up on trying to pad its pockets to the detriment of the  Canal Authority, ACP).

GUPC has again tried to bend the rules to gain extra payment for the over cost, over time project. The contractor has requested an arbitrator to make a decision on four claims totaling $ 5.6 billion without going through the second step of the conflict resolution process.

That process would give the arbitration board more information about the claims, according to the ACP.

The Authority has filed its response and raised objections to the request.

The consortium, which won the contract for design and construction of the third set of locks in

2009 for $3.18 billion, has filed claims of $6.86 billion, alleging additional costs at the site. It has already been criticized for filing a number of claims which have not been justified by supporting evidence, regarded by commentators as “The Art of the Deal” tactics.

While the authorities process the claims, the contractor has continued to work on minor defects, which are expected to be completed in June, a year after the expansion locks went into service.