Monday, April 14, 2014

Work Resumes on Panama Canal Enlargement but Key Issues Remain Unresolved

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Article from NotiCen, April 10

The Spanish-led consortium Grupo Unidos por el Canal (GUPC) resumed work on the expansion of the Panama Canal on Feb. 20, after a bitter dispute with the Autoridad del Canal de Panamá (ACP), the autonomous agency that manages the canal, was finally resolved. The expansion of the canal was originally expected to cost around US$5.25 billion but the GUPC argued that it had encountered unforeseen additional expenses that would increase the cost of the project to almost US$7 billion, setting off an acrimonious feud with the ACP, which insisted that the consortium should abide by the terms of the contract. After the two parties failed to reach an agreement, the project ground to a halt on Jan. 20. After a war of words between the two parties and weeks of legal wrangling, the consortium and the ACP agreed that each side would pay US$100 million needed for the project to resume while insurer Zurich will convert a US$400 million deposit into a loan. Louisa Reynolds Read More

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