January 20, 2014

Lowball Bid Comes Back to Haunt Panama Canal

Kriel & Dowsett, Reuters

The Associated Press

A bitter dispute between the Panama Canal and a Spanish-led consortium of construction companies over the spiraling cost of expanding one of the world's busiest waterways was years in the making. The two sides are at odds over who should pay for $1.6 billion in cost overruns to build a third set of locks for the canal, the main part of the expansion of the 50-mile cargo route that connects the Atlantic and Pacific oceans. The impasse over the 100-year-old waterway could delay construction, which aims to double the canal's shipping capacity and bring in billions of dollars in new revenue for Panama.

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TAGGED: Panama Canal, Panama Canal Authority, Grupo Unidos Por El Canal