Panama Canal expansion work to restart after 2 weeks

[PANAMA CITY] A group led by Sacyr SA plans to restart work on the Panama Canal expansion project after it paralysed construction for almost two weeks in a dispute over US$1.6 billion in cost overruns.

The waterway's authority said it has agreed to pay the builders, which include Milan-based Salini Impregilo SpA, US$36.8 million in back pay once work begins on the third set of locks originally budgeted at US$3.1 billion.

Talks will continue for the next 72 hours to determine delivery dates for the new gates, a construction schedule and "other key aspects" of the US$5.25 billion project, the Panama Canal Authority said.