Two Sides in Canal Cost Fight May Be Edging To a Solution

With a threatened January 20 work shutdown looming on the $5.2-billion Panama Canal lock expansion, the project's contractors and owner may be edging closer to resolving an estimated $1.6-billion cost dispute. Grupo UPC, led by Spain's Sacyr Vallehermoso, seeks a larger cash infusion from the Panama Canal Authority than it offered on January 6, claiming cost overruns are due to "unforeseen circumstances" from lack of accurate data from the owner and its project manager's inexperience. The authority has insisted the contractor follow a three step contractual dispute-settlement process.