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THE PANAMA CANAL AUTHORITY (ACP) IS OBLIGED TO ASSUME PAYMENT OF PART OF THE ADDITIONAL COSTS INCURRED IN THE CANAL EXPANSION PROJECT


During the final stage of the Panama Canal Expansion Project, the Dispute Adjudication Board (DAB) has once again ruled that GUPC (the consortium awarded the project, which includes the entity Sacyr) is entitled to receive payment of the extra costs incurred in executing the works.

In a decision issued in December 2015, the DAB admitted that GUCP had the right to receive 17.5 million dollars from the ACP for additional costs and delays during the works caused by the strike and the incidents that took place in Panama in May 2014.

In January 2016, in a different decision, the DAB admitted another claim filed by GUPC amounting to 24.60 million dollars corresponding to additional labour costs.

The above amounts are in addition to the 233.4 million dollars the ACP was obliged to pay to GUPC following a prior decision in January 2015 in connection with the poor quality of the basalt that was to be used to build the new Canal road.