Panama Canal expects to sign deal with consortium Thursday
PANAMA CITY (REUTERS) - The Panama Canal Authority expects to formally sign a deal next week with a Spanish-led consortium to finish work on expansion of the waterway after a dispute over cost overruns held up completion, an official said on Friday.
"We expect that by Thursday we should be signing said document," Panama Canal Administrator Jorge Quijano told reporters a day after announcing a deal with the GUPC consortium, which is led by Spanish builder Sacyr and Italy's Salini Impregilo.
The deal, which was outlined on Thursday, foresees the consortium finishing work by December 2015 and would require both the Panama Canal Authority and GUPC to each inject US$100 million (S$126 million) for immediate cash flow needs to fully resume work.
The agreement would also extend repayment of advanced payments made by the Panama Canal Authority to the consortium that are worth US$784 million until 2018 at the latest.