Board Dismisses Panama Canal Cost Overrun Claim
A dispute resolution board dismissed a $100 million complaint for cost overruns by the consortium that built the third set of Panama Canal locks, part of a $5.4 billion expansion completed in June, the waterway authority said on Friday.
The Panama Canal Authority said in a statement that the board rejected a complaint last month asking the authority to cover cost overruns by Grupo Unidos Por el Canal (GUPC), a consortium led by Spain’s Sacyr and Italy’s Impregilo .
The board is comprised of members of the Panama Canal Authority and the consortium.
The complaint was presented by the consortium for “unforeseeable physical conditions” which it said contributed to more than $3.5 billion in cost overruns.
The consortium will likely appeal the decision with an international court of arbitration in Miami.
A representative of GUPC in Panama could not be immediately reached for comment.