Money row could mean more delays for the Panama Canal

The Spanish consortium heading up the expansion said on January 2, 2013 that it had warned Panamanian authorities that work would be suspended on January 20, 2013 unless the government paid an extra US$1.6bn towards the spiralling cost of the project.

Panama’s president Ricardo Martinelli immediately took to Twitter to reject the ultimatum, writing on his official account that he will “defend Panama’s interests in the expansion of the canal” by insisting that companies involved honour their contracted obligations.

The Grupo Unidos por el Canal consortium (GUPC), has cited a sub-clause of the contract signed by both parties that relates to late payment, an allegation strongly denied by Jorge Quijano, the canal’s administrator. “We have met with payments religiously,” he said.