Canal opening day a moveable feast as cost claims drag on
THE PANAMA Canal expansion project, said to be 95% complete is more than a year behind schedule, and while its opening date has become a movable feast, the public infighting over the cost will continue well past the latest projected “mission accomplished”
An international Court of Arbitration has rescheduled a hearing on claims submitted by expansion contractor GUPC ,that was supposed to be held last month to July.
The claims are related to the temporary dam that the contractor had to build on the Pacific side of the project. GUPC received a $3.1 billion contract, to build the third set of locks.
A $218.1 million claim was rejected in the two first instances, by the Panama Canal Authority (ACP) and the Board of Conflict Resolution.
GUPC has sought to have the claim heard by the court, which is the final step in the appeal process as outlined in the original contract.
The hearing was supposed to take place Dec. 7 in Miami, but GUPC representatives asked for more time to prepare their petition.
There are a number of outstanding claims by the contractor. One relates to the quality of materials that were available to make the concrete on the Pacific side of the project. The contractor has sought a $577 million payment, while the ACP has denied it has any responsibility.
The board decided on a $233.2 million payment, a decision that both sides have appealed.
