Spanish version

MARITIME AFFAIRS

Board rejects $520 million in GUPC claims

Of the $803 million submitted by the consortium, only $283 million has been awarded.

Spanish version

Temas:

The Conflict Resolution Board that was established to review claims submitted by GUPC, the consortium building the third set of locks on the Panama Canal, has rejected $520 million of those claims so far.

The board has so far ruled on nine claims totaling $803 million, five of which have favored the consortium. It has rejected four of the claims. Out of the $803 million, the board has awarded the consortium $283 million.

The board is composed of three international engineers: one appointed by GUPC, another by the Panama Canal Authority and the third chosen by both parties.

It noted that the contractor appears to be be submitting "inflated claims" in relation to labor costs.

The ACP said that there attempts to be an attempt by the contractor to "artificially inflate the cost of the project to the detriment of the Panamanian people."

The two sides have been at odds over payments for the work, with the consortium threatening to delay the completion of the project if its claims are not recognized. President Juan Carlos Varela and others have called on the consortium to finish the work within the next five months. The project is already more than a year behind schedule.

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