Panama Canal receives claims for US$737m

Panama City

THE consortium expanding the Panama Canal is making fresh claims for cost overruns totalling US$737 million, officials said. Canal administrator Jorge Quijano told reporters that the Panama Canal Authority had received two claims that "will be evaluated" to determine if there is probable cause.

But he warned that "at first glance, the issues will be very difficult for the counterparty to justify". And in the latest setback for the behind-schedule, over-budget upgrade, a union representative said that excavation work was on hold after negotiations broke down between the consortium and workers who have been on strike since Tuesday last week.