PANAMA CITY (AP) — The administrator of the Panama Canal
says work will resume Thursday on a major expansion of the canal two
weeks after it was halted over a disagreement with a contractor on $1.6
billion in cost overruns.
It says the European-led construction
consortium will go back to work even though they haven’t reached a final
agreement on how to finance the remaining work on a set of new locks
The
dispute that began in January threatens to further delay completion of
the $5.25 billion expansion project that will allow extra-large tankers
and container ships to use the canal and cut travel time between Asia
and the eastern U.S.
The consortium led by Spain’s Sacyr blames
poor planning for the cost overruns. Panama says the company is
responsible for any unforeseen costs.
Copyright 2014 The Associated Press. All rights
reserved. This material may not be published, broadcast, rewritten or
redistributed.
PANAMA CITY (AP) — The administrator of the Panama Canal
says work will resume Thursday on a major expansion of the canal two
weeks after it was halted over a disagreement with a contractor on $1.6
billion in cost overruns.
It says the European-led construction
consortium will go back to work even though they haven’t reached a final
agreement on how to finance the remaining work on a set of new locks
The
dispute that began in January threatens to further delay completion of
the $5.25 billion expansion project that will allow extra-large tankers
and container ships to use the canal and cut travel time between Asia
and the eastern U.S.
The consortium led by Spain’s Sacyr blames
poor planning for the cost overruns. Panama says the company is
responsible for any unforeseen costs.
Copyright 2014 The Associated Press. All rights
reserved. This material may not be published, broadcast, rewritten or
redistributed.