Panama Canal Upgrade Hits Another Impasse Over Cost Overruns
The widening of the Panama Canal hit a giant hurdle today after negotiations over who is responsible for extra project costs broke down. Talks collapsed between Canal authorities and Spanish construction conglomerate Sacyr, after they failed to come to terms over huge cost overruns of approximately US$1.6 billion.
The collapse of talks puts the completion of the project and up to 10,000 jobs at risk. Sacyr representatives also stated the impasse could mean the project being delayed an additional three to five years. The project is already nine months behind schedule.
Construction had been underway to widen the Canal to fit ships carrying 12,000 containers, twice the current limit. Both sides had previously estimated the upgraded Canal would be ready in 2015.
Source: Associated Press.