Panama Canal group wins $233 million settlement

A consortium led by Spanish-builder Sacyr said it has won a $233 million settlement in a dispute over cost overruns in an expansion of the Panama Canal, half what the group had been seeking in the lawsuit.

The consortium, which also includes Italian builder Salini Impregilo, Belgium’s Jan de Nul and Panama’s CUSA, said that a resolution panel had also ruled the group has another six months to finish a project for the lock system.

The consortium has filed a series of claims totaling some $2.3 billion over the dispute that halted work early last year on the expansion to allow bigger vessels to pass through the canal.

This suit was for a $463 million claim by the consortium related to cement quality.

The government-run Panama Canal Authority said it was still deciding whether to appeal.

Source: Reuters