No deal on Canal expansion as both sides dig in

WITH JUST one day left to conclude a deal between the Panama Canal Authority (ACP) and Grupo Unidos por el Canal (GUPC), the two groups have yet to abandon their “They shall not pass” stances.

GUPC is asking for $1.6 billion for cost overruns to complete the canal expansion project, while the ACP says the consortium, which has a liquidity problem, has not respected the contract.

The ACP ‘s “Plan B” has been given the thumbs down by Zurich Insurance bond holders, and reports say that they have accused the ACP of intransigence
The parties, which are meeting with insurance company Zurich, have until February 1 to reach an agreement.
On the table is a proposal for co-financing, which would include the contribution of $400 million from Zurich, $100 million from the ACP and $100 million from GUPC says La Prensa
Yesterday, at the end of two days of Panama Canal Authority (ACP) meetings, ACP Administrator Jorge Luis Quijano said that no agreement had been reached, He reiterated that the goal of both parties is to finish the project with the original contractor.
Meanwhile, former members of the ACP expressed their support for the current administration. A statement signed by Mario Galindo, Guillermo Quijano, Alfredo Ramírez, Dani Kuzniecky, Abel Rodríguez, Norberto Delgado and Eduardo Quirós said that the board approved a contract with GUPC that should be followed.
"The decision to expand the Canal included a budget of the work and the terms and conditions of the respective contract that had to be met by the companies interested in participating in the bidding process," the statement said.
They said GUPC has not respected the contract by threatening to stop work because of the cost overruns.