Panama Canal Rejects Sacyr’s Claims to Stop Work on Expansion
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The Panama Canal Authority rejected claims from a group led by Sacyr SA, which has threatened to abandon expansion work if the waterway doesn’t meet a cost overrun amounting to about half the initial $3.1 billion contract.
Spanish builder Sacyr and Italy’s Impregilo SpA notified canal managers in a Dec. 30 letter that they would suspend work if their demands for an additional payment of $1.63 billion aren’t met. Panamanian President Ricardo Martinelli is meeting with Ana Pastor, Spain’s Public Works Minister, in the capital of Panama City today to help resolve the dispute.