Spanish minister heading to Panama over Canal construction dispute

AS THE blame game heats up between The Panama Canal Authority (ACP) and the consortium building the third set of locks for the Canal expansion, a Spanish Minister is preparing to fly to Panama with a message from the Spanish President.

President Ricardo Martinelli has placed himself in the thick of the dispute over cost overruns amount to $1.6 billion, and the threat of a work suspension if the matter is not settled in the next 18 days.

Martinelli met with Spanish Ambassador Jesús Silva and Italian cónsul Massimo Tudini on Friday, January 3, to discuss the stand-off between the ACP and  companies from both countries. 

The meeting took place a day after Martinelli said that the two countries have a "moral responsibility" in the conflict.
Martinelli indicated that the businesses, Sacyr from Spain and Italy's Impregilo, will be held to the $3.25 billion contract they signed for the largest component of the Canal expansion.
Spanish Minister of Development, Ana Pastor. is planning an emergency trip to Panama with a message from President Mariano Rajoy.
Also expected to come is Sacyr President, Manuel Manrique reports La Prensa.
Silva said both parties must resume the dialogue so that the expansion of the Panama Canal continues.
The consortium GUPC, which includes Sacyr and Impregilo, has said it can't continue working unless it is paid $1.6 billion in additional fees.
The consortium has blamed Panama Canal Administrator Jorge Luis Quijano for causing the additional costs by violating the contract between the parties. Quijano has responded by saying that he is willing to follow the contract, which outlines procedures for the reimbursement of cost overruns, but it is the company that is refusing to adhere to those provisions.