Brussels, 05/02/2014 (Agence Europe) -The mediator in the dispute between the European consortium tasked with the work and the Panamanian government, Commissioner Tajani, has called on the parties to return to the table.
The negotiations on the surplus costs of the work to expand the Panama Canal, one of the largest civil engineering projects in the world, broke down in the absence of an agreement, the Spanish group Sacyr, which heads up the consortium tasked with the construction work, announced on 5 February. The Italian group Impregilo and Belgium's Jan de Nul are also members of the consortium. There is a dispute between the consortium and the Panamanian government on a financial extension of €1.2 billion to cover additional costs which have arisen due to unforeseen geological issues on the site and to continue the work, the initial cost for which was €3.2 billion.
The commissioner, who has played the role of mediator in this dossier since January, said that he was surprised by this “unexpected” breakdown in negotiations, as Panamanian President Ricardo Martinelli had given assurances the day before that the parties were “very close to an agreement”. Tajani has also spoken to the minister responsible for the canal, Roberto Roy. “The political relation between the Commission and the Government of Panama has been correct, but it is up to the parties to come to an agreement within the legal framework. I trust and hope that the parties reconsider their positions in the coming days, because the interruption of the works will be bad news for employment, the worldwide economy, for the expansion works of the Canal and for the parties themselves”, he commented on Wednesday.
The expansion work of the Panama Canal, which was scheduled for completion this year, has accumulated delays of nine months, not counting the slow-down in recent weeks. The expansion of the 80 km canal, which was opened in 1914 and accounts for 5% of global maritime trade, will double the load currently authorised to use it to 12,000 containers. (EH/transl.fl)