Panama Canal deal signed, settling cost overruns dispute

[MADRID] A consortium led by Spain's Sacyr has signed a deal to complete work on widening the 100-year-old Panama Canal, it said, settling a long-running dispute over cost overruns that had put the multi-billion-dollar project in jeopardy.

Insurer Zurich, whose agreement was necessary to get financial backing for the project, signed the deal separately on Friday.

The Grupo Unido por el Canal (GUPC) consortium, which also includes Italian company Salini Impregilo, said that the accord sets a new December 2015 deadline to complete the project, six months later than estimates given earlier this year. "Zurich worked diligently with the Panama Canal Authority and GUPC to reach an agreement . . . and fortunately the two sides have had a successful negotiation," Zurich said.