{"id":10769,"date":"2014-07-14T13:51:15","date_gmt":"2014-07-14T18:51:15","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=10769"},"modified":"2014-07-14T13:51:15","modified_gmt":"2014-07-14T18:51:15","slug":"arbitration-over-1-6-billion-panama-canal-cost-dispute-to-begin-in-july","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/arbitration-over-1-6-billion-panama-canal-cost-dispute-to-begin-in-july\/","title":{"rendered":"Arbitration over $1.6 billion Panama Canal cost dispute to begin in July"},"content":{"rendered":"

\"\"<\/a><\/p>\n

(Reuters) – Arbitration to decide who will bear the Panama Canal expansion project’s $1.6 billion cost overrun, a dispute that temporarily halted work earlier this year, will begin in closed-door sessions in Miami later this month, according to lawyers arguing the matter.<\/p>\n

On July 21 “both sides will submit their terms and draft procedural orders for how things will work,” said Carolyn Lamm, an attorney with White & Case representing the Spanish-led construction consortium.<\/p>\n

Labor and cost disputes have plagued the effort to expand the 100-year-old canal, fanning fears of delays that could cost Panama millions of dollars in lost shipping tolls and posing a setback for companies worldwide that want to move larger ships through the waterway that links U.S. South and East Coast ports to Asian markets.<\/p>\n

Panama’s largest construction union resumed work on May 8 following a two-week strike demanding higher wages. Work had also ground to a halt in early February due to the dispute over who would bear cost overruns that boosted the project’s $5.25 billion budget to near $7 billion.<\/p>\n

In a deal signed in March, the Panama Canal Authority and the consortium led by Spain’s Sacyr and Italy’s Salini Impregilo agreed to inject $100 million to resume work. Both also agreed to extend repayment of $784 million of advanced payments made by the Panama Canal Authority to the consortium until 2018 at the latest.<\/p>\n

Panama Canal Administrator Jorge Quijano in June said between “75 and 76 percent” of the engineering project is completed and a third set of locks to allow bigger ships to pass through the 50-mile (80-km) waterway should open in January 2016. (Editing by David Adams and Meredith Mazzilli)<\/p>\n","protected":false},"excerpt":{"rendered":"

(Reuters) – Arbitration to decide who will bear the Panama Canal expansion project’s $1.6 billion cost overrun, a<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-10769","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective"],"yoast_head":"\nArbitration over $1.6 billion Panama Canal cost dispute to begin in July - Blog and Newsletter<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/arbitration-over-1-6-billion-panama-canal-cost-dispute-to-begin-in-july\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" 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