Panama Canal Authority (ACP) Press Release:
Reached in Panama Canal New Locks Project
Panama City, Panama, February 27, 2014 - The Panama Canal Authority
(ACP) announces the end of talks with the new locks project contractor Grupo
Unidos por el Canal, S.A. (GUPC), through which a conceptual agreement has
been reached subject to documentation, review and final signature by the
The conceptual agreement falls within the terms of the
Contract for the Design and Construction of the Third Set of Locks and does
not include any payment for claims. GUPC's claims must be process through
the mechanisms within the contract. The price of the contract remains the
same and is not modified by this agreement.
"We have reached a
conceptual agreement that protects the interests of the Panama Canal, within
the terms of the contract and respecting our position," said Panama Canal
Administrator Jorge L. Quijano. "The agreement is under review and pending
signature; however, our commitment to Panama and our customers has been to
inform these recent developments."
"The Third Set of Locks will be
completed within the terms of the contract, as requested from the very first
day," reiterated the Canal Administrator.
The conceptual agreement
The construction of the Third Set of Locks is
completed by December 2015.
The 12 lock gates in Italy must be in Panama
by December 2014, to be transported in staggered shipments.
Performance Bond for US$400 million may only be released to Zurich North
America, to obtain financing to complete the work.
GUPC will pay US$100
million and ACP will advance US$100 million, which will enable works to
regain a normal pace in March.
The moratorium for the repayment of
advances may be extended until 2018, subject to fulfillment of certain
milestones and other conditions.
The consortium GUPC is formed by
Sacyr Vallehermoso, S.A (Spain), Impregilo, S.p.A. (Italy), Jan de Nul Group
(Belgium) and Constructora Urbana, S.A. (CUSA) (Panama).
Panama Canal Authority (ACP)
The ACP is the autonomous agency of the
Government of Panama in charge of managing, operating and maintaining the
Panama Canal. The operation of the ACP is based on its organic law and the
regulations approved by its Board of Directors. Please refer to the ACP's
website: http://www.pancanal.com/ or http://micanaldepanama.com/expansion.