Grupo Unidos por el Canal (GUPC), the consortium of leading international construction companies, and the Panama Canal Authority (ACP) signed an agreement to facilitate the funding and continued construction of the Third Set of Locks for the Panama Canal Expansion.
The agreement supports a cofinancing concept that the Consortium has been pursuing to ensure the cash flow to the project completion in the face of circumstances encountered during the project.
The principal terms of the agreement generally follows the conceptual agreement reached two weeks ago, following exceptional efforts by the Consortium to continue work on the project despite difficult conditions.
The agreement, within the terms of the contract and applicable law, includes:
– GUPC and ACP are contributing $100 million each;
– There is an extension of the financial moratorium related to certain payments to facilitate investment on the project;
– The remaining locks gates that are in Italy will arrive to Panama in phases, through transportation on staggered shipments;
– The MOU also provides for a completion at the end of 2015.
Press Release, March 17, 2014