A consortium led by European contractors resumed work this week on expanding the Panama Canal following a two-week stoppage caused by a dispute over who will pay for $1.6 billion in cost overruns, Nola.com reports.
You can watch our video on the progress of this here.
The consortium, led by Spain’s Sacyr and Italy’s Salini Impreglio, said Thursday (Feb. 20) that it had solved the problems that led to the standoff.
“The restarting of the works is being done in a way that will enable it to reach full pace in the shortest time possible,” the consortium, known as Groups United for the Canal, said in a statement.
The canal administrator Jorge Quijano stressed that not all of the issues have been resolved. The insurer Zurich has not committed to converting a $400 million surety bond, for example, which would go a long way toward raising the money needed to complete the project.
Written by: Jed Lipinski
Read the full article here: http://www.nola.com/business/index.ssf/2014/02/work_resume_on_panama_canal_ex.html