GUPC Pushes for Panama Canal Agreement
- Business & Finance
GUPC, the consortium of leading international construction firms, has signaled hope for an agreement with ACP to resolve the funding issues affecting for the Third Set of Locks Panama Canal expansion project.
While cautioning that there are still issues to be resolved, GUPC confirmed that talks with ACP are ongoing and expected to continue. GUPC confirmed that it had delivered a proposal recently that reflected ongoing efforts to adapt to ACP concerns expressed throughout the negotiations, while also seeking reasonable financial equilibrium as required.
GUPC already has invested $300 million of its own shareholder funds beyond its obligations and has offered to fund and finance more, balanced with collaboration from ACP in a co-financing arrangement. The funding will facilitate completion of the works pending the outcome of arbitrations to allocate final responsibility for additional costs.
In addition, GUPC confirmed that coordination continues to advance regarding the participation of insurer Zurich, as well as ACP. GUPC also remains open to involving a facilitator or mediator, depending on the outcome of ongoing talks. GUPC has taken a series of positive steps over the past month to encourage an agreement and provide for payments to subcontractors and workers and the continuation and completion of the works.
Press Release, February 19, 2014