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Case over US$1.6bn in cost overruns at Panama Canal to begin
ARBITRATION concerning the recovery of US$1.6 billion in cost overruns incurred during the expansion of the Panama Canal that sparked a row between the contractor and port authorities, bringing construction to a standstill, is to begin in July.
The dispute over the hefty additional costs demanded by the port authorities and by what was effectively the consortium with the cheapest bid for the contract has been plagued with funding and labour issues from the start.
On July 21 "both sides will submit their terms and draft procedural orders for how things will work," attorney with White & Case representing the Spanish-led construction consortium, Carolyn Lamm, said in a Reuters' report.
The row has fanned fears of delays that could cost Panama millions of dollars in lost shipping revenues and poses a setback for companies worldwide that want to move larger ships through the waterway that links US south and east coast ports to Asian markets.
In a deal signed in March, the Panama Canal Authority and the consortium led by Spain's Sacyr and Italy's Salini Impregilo agreed to inject $100 million to resume work.
Both sides also agreed to extend repayment of $784 million of advanced payments made by the Panama Canal Authority to the consortium until 2018.
The 50-mile (80-kilometre) waterway is now scheduled to open in January 2016.
The dispute over the hefty additional costs demanded by the port authorities and by what was effectively the consortium with the cheapest bid for the contract has been plagued with funding and labour issues from the start.
On July 21 "both sides will submit their terms and draft procedural orders for how things will work," attorney with White & Case representing the Spanish-led construction consortium, Carolyn Lamm, said in a Reuters' report.
The row has fanned fears of delays that could cost Panama millions of dollars in lost shipping revenues and poses a setback for companies worldwide that want to move larger ships through the waterway that links US south and east coast ports to Asian markets.
In a deal signed in March, the Panama Canal Authority and the consortium led by Spain's Sacyr and Italy's Salini Impregilo agreed to inject $100 million to resume work.
Both sides also agreed to extend repayment of $784 million of advanced payments made by the Panama Canal Authority to the consortium until 2018.
The 50-mile (80-kilometre) waterway is now scheduled to open in January 2016.
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