The International Information Center for Structural Engineers

The first of several claims related to the Panama Canal’s $1.6 billion in cost overruns will begin arbitration in Miami next week. The first dispute to be heard by the arbitration court will be a $180 million claim over the cost of draining an area to create work space near the Pacific locks of the 50-mile (80-km) long canal. The project’s contract states that if a disagreement between two parties arises during any part of the project, the two sides must first analyze the other side’s claim and then head to an adjudication board. In the event that these two measures cannot bring an agreed upon solution, the dispute would then head to arbitration. 

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  • Date occured Wednesday, 16 July 2014
Monday, 06 January 2014 00:00

Panama Canal Expansion May Face Delays

Spanish construction company Sacyr Vallehermoso announced Wednesday that the Panama Canal Authority has 21 days to pay for the nearly $1.6 billion in cost overruns on the canal expansion project.  Pananma’s President, Ricardo Martinelli, tweeted that he will reject the company’s ultimatum, and he plans to travel to Spain on Thursday to demand that Sacyr and Impregilo (Italian construction company) honor the original terms of the contract.  If the two sides cannot reach an agreement by January 20, the canal expansion contract states that the two parties must head to a Paris-based arbitration court.

Additional Info

  • Date occured Wednesday, 01 January 2014