Panama Canal expansion work slows 75pc, says ACP - builders silent

    WORK on the Panama Canal expansion has slowed at least 75 per cent, says the Panama Canal Authority (ACP) and there has been no response from the building contractors' consortium, Grupo Unidos por el Canal (GUPC), which earlier claimed there would be no immediate stoppage.

　　But ACP said work has slowed to a quarter of its normal pace in the past two months and almost completely stopped mid-week, reported American Shipper.

　　Canal officials say they will complete the project with or without GUPC. The two sides are locked in a dispute over US$1.6 billion cost overruns.

　　In the absence of payment, the GUPC first threatened to suspend work on the crucial third lock on January 19, then put off the date twice, with its last statement saying no immediate stoppage had been planned.

　　GUPC claims that ACP had broken off talks, but that it was still trying to cooperate with the canal authority, reported Lloyd's List.

　　Said GUPC: "We have been making proposals and responding to proposals on an almost continual daily basis."

　　GUPC has focused on a pending $50 million invoice discussed in recent meetings, to allow payments to subcontractors and workers to cover this week's payroll.

　　There are three levels of independent arbitration set out in the original $3.1 billion contract signed in 2009 between ACP and GUPC, although the current dispute has yet to pass the second stage.

　　Consortium leader, Spanish construction giant Sacyr, is still in contact with ACP in hope of resuming talks.

　　"There is correspondence between both parties, inviting each other to dialogue," a consortium source said on Thursday, Reuters reported.