Percorso:ANSA.it > ANSA English > News

Multibillion-dollar Panama Canal expansion restarts

Temporarily halted work amid $1.6 bln extra costs dispute

21 February, 15:35
Multibillion-dollar Panama Canal expansion restarts (ANSA) - Milan, February 21 - The multibillion-dollar Panama Canal expansion works slowly re-commenced Friday, and will return to the normal pace in coming days.

The resumption of work comes amid an agreement that is scheduled to be signed on Sunday to deal with an extra $1.6 billion in unusual project costs.

Operations had been suspended temporarily over the payments dispute between the Spanish-led construction consortium and the Panama Canal Authority that appears to be near resolution. Italian company Salini-Impregilo makes up 38% of the building consortium working on the $5.25-billion expansion project.

The Spanish-led consortium, known as the as Grupo Unidos Por el Canal (GUPC), and the Panama Canal Authority have been locked in a dispute over the cost overruns for weeks.

As many as 10,000 jobs have reportedly been affected by the dispute.

ALL RIGHTS RESERVED © Copyright ANSA