Fitch warns Panama Canal delay could hurt US ports

Following months of disputes between the two parties, Sacyr, the Spanish leader of the consortium Grupo Unidos por el Canal, S.A. (GUPC) heading up the expansion,  warned earlier this month that work would be suspended on (20th January unless the Panamanian government paid an extra US$1.6bn towards the spiralling cost of the project.

On Sunday (19^th) the ACP warned that the suspension of work by GUPC was not valid, as it lacked merit and goes against what is established in the contract for the design and construction of the third set of locks.  Currently, the production levels are low in the new locks project without any justification.

In a statement the ACP said that the reasons cited by the consortium to justify the suspension of work were based on the wrongful application of Sub-Clause 16.1 of the contract.  This clause provides the right to suspend work only when the employer has failed to issue payment to the contractor.