Panama Canal work to proceed despite dispute

[PANAMA CITY] Work to expand the Panama Canal will proceed despite a financial dispute that could derail the project, an official managing the major waterway said. The Grupo Unidos por el Canal (GUPC) consortium, led by Spanish builder Sacyr, has threatened to suspend the expansion work by today unless Panama pays for US$1.6 billion in "unforeseen" costs.

"We are ready to deal with all eventualities, but I am sure that enlargement of the canal will go ahead with or without" the GUPC, canal administrator Jorge Quijano said. "Our intention is to finish as quickly as possible, (even) if work is suspended ... we will complete the work no matter what," he added at a ceremony marking the 100-year anniversary of the canal's inauguration in 1914.

Attempts to resolve the dispute through dialogue and mediation efforts by Spanish and Panamanian authorities have failed so far, but "negotiations remain open", Mr Quijano said. He added, however, that talks have begun with other companies in case the contract with GUPC falls through.