THE head of the Panama Canal Authority (ACP) has proposed that it and the Spanish-led consortium building the locks to expand the major waterway come up with the extra funding themselves to cover the US$1.6 billion in cost overruns.
Mr Jorge Quijano said the sides had agreed to talks on Tuesday to solve the dispute over the huge cost overruns on the original $3.2 billion contract to build a third set of locks for the canal.
The governments of Spain and Panama have distanced themselves from the dispute, saying it was up to the Panama Canal Authority and the building consortium Grupo Unidos por el Canal (GUPC) led by Spanish construction company Sacyr to end the row, reports Reuters.
"We are talking about some additional funding that they would have to put up and we could also provide," Mr Quijano told reporters after a meeting in Panama with Spanish Public Works Minister, Ana Pastor, who is mediating.
"We have set out what we can do to contribute, as long as they also contribute," he added.
There was no immediate word from GUPC on the proposal.
The canal authority has already paid GUPC about $2 billion for the work, as well as $150 million to $160 million for cost overruns under the contract.
Spain's Ambassador to Panama, Jesus Silva, said on Monday his government would provide no financial help to Sacyr in sorting out the row.
Last week, Panamanian President Ricardo Martinelli accused the consortium of "great irresponsibility" when it threatened to halt work on building the locks on January 20 if ACP did not pay for the cost overruns.
The GUPC also includes Italy's Salini Impregilo, Belgium's Jan De Nul and Panama's Constructora Urbana. The consortium blames the Panama Canal Authority for carrying out flawed studies of the geological terrain.
Mr Martinelli had earlier sought aid from Spain and Italy, saying their governments had given him assurances that they would finish the $3.2 billion project to build the locks, prompting Ms Pastor to fly to Panama to seek an end to the impasse.
The Panama Canal expansion project is more than two-thirds complete and is scheduled to conclude in 2015. The project has already been delayed twice, after it was originally scheduled for completion in 2014.
WORLD SHIPPING
08 January 2014 - 00:31
PCA willing to share US$1.6bn cost overrun with contractor
THE head of the Panama Canal Authority (ACP) has proposed that it and the Spanish-led consortium building the locks to expand the major waterway come up with the extra funding themselves to cover the US$1.6 billion in cost overruns.
WORLD SHIPPING
08 January 2014 - 00:31
PCA willing to share US$1.6bn cost overrun with contractor
This news 4577 hits received.
These news may also interest you