GUPC Proposal to ACP Includes Co-Financing (Panama)

Grupo Unidos por el Canal (GUPC) proposed co-financing of the unexpected costs to the Panama Canal Authority (ACP) in the Panama Canal expansion contract.

The expansion of the Panama Canal is a strategic project for the world’s economy and global security. Maritime traffic throughout the world is anticipating the opening of the passage for larger ships during the first half of 2015.

GUPC’s proposal consist in co-financing the unexpected costs in order to continue the works and to maintain the work force of about 10 thousand people employed, thereby achieving the completion of the project in 2015 and producing several billion in terms of revenue for Panama.

GUPC stands united; it is not asking for extra profits but for the co-financing of the unforeseen costs pending the decision of the international arbitration.

In this way, the resources financed by the Canal Authority are fully covered by bank guarantees and insurance obtained by the consortium pending the outcome and final decision of the arbitrators on the responsibilities of these extra costs.

The works, which have a cost of over 100 million dollars a month have today reached 70% completion and, technically speaking, nothing prevents GUPC from reaching the finishing line. The only impediment is the difficult financial situation which has arisen due to the additional costs which occurred during the execution of the works, for which GUPC has requested relief.

It is important to underline that these costs are extensively documented and verified by ACP who has always been informed of the situation through an “open book” procedure. Moreover, these additional costs are audited by a specific audit carried out by independent experts. Ultimately, there is no question about the existence of these unexpected costs, but only about who should pay for them, the contractor or the client.

Failure to reach an agreement on co-financing of the unexpected costs will result in a serious delay and it will mean that the works will not be finished in 2015 causing damages to all parties involved.

Instead, an agreement will allow for completion in 2015, as well as an immediate generation of wealth for all Panamanians and significant benefits to all those who, trusting in the Canal expansion as soon as possible, have already made huge investments.

The consortium accepts the mediation of the European Union and European Commissioner Tajani to reach a satisfactory solution and extends the notice given to a possible suspension of work.

Press Release, January 22, 2014

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3rd International Congress Hydraulic Engineering Structures and Dredging

Russia’s leading maritime industry Media Group PortNews (www.portnews.ru) holds a traditional annual Congress “Hydraulic Engineering Structures and Dredging” in Moscow. 

The two-day Congress includes the 7th International Forum of Dredging Companies and the 3rd Technical Conference “Modern Solutions for Hydraulic Engineering”.

Infrastructure development is among the real sources of Russia’s economy growth. Construction of port facilities and new hydraulic engineering structures on the country’s inland waterways constitute an essential part of all infrastructure projects. It is important to take into account the best international practices to implement these projects effectively.

The program of the Congress will be devoted to the latest technologies for dredging and hydraulic engineering works. Speakers and delegates will refer to real projects to discuss specifics features of dredging works, as well as dedicated fleet and equipment involved.

To learn more about event, please, contact the organizing committee: snitko@portnews.ru

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