Canal expansion shut down imminent
WHILE THE MANTRA, that the expansion of the Panama Canal will continue with or without the consortium Grupo Unidos por el Canal (GUPC), these are worrying times for the Canal Authority (ACP)
GUPC, a key player in what appears to be a high stakes poker game, has confirmed that it plans to stop work on Monday, January 20, because of cost overruns.
Panama Canal Authority (ACP) Administrator Jorge Quijano after said that the next steps are difficult to predict since they will depend on the actions of the GUPC.
"We are preparing for any eventuality, but I am sure that the Canal expansion will be complete with or without them," he said and reiterated that the plan of the ACP is to finish the work as soon as possible.
GUPC sent a letter to the ACP on Dec. 30 warning it would suspend work on Jan. 20 if the issue of the cost overruns was not settled. The ACP has maintained that the consortium should adhere to the contract, which lays out guidelines for dealing with the issue.
"Negotiations are still open, but we'll see on Monday what happens," said Quijano, who acknowledged that there are already talks with other companies to complete the work if necessary.