Panama City: Negotiations over massive cost overruns in the expansion of the Panama Canal appeared to run into trouble when one of the companies involved demanded more than USD 1 billion to continue work on the project.
The Panama Canal Authority immediately rejected the proposal."There is no negotiation outside the contract," canal administrator Jorge Luis Quijano said.
On Tuesday, the canal authority proposed that it inject USD 183 million into the project to allow the consortium expanding the canal to continue work for several months while a permanent solution is sought to a dispute over the more than USD 1.5-billion in cost overruns. The authority wanted the consortium to put in USD 100 million.
Italy`s Impregilo, one of the corporations in the consortium, countered with a demand yesterday for USD 1 billion from the canal authority.
Quijano said the authority was sticking by its proposal for a joint injection of USD 283 million, moving the conflict closer to the January 20 deadline that the consortium has established for resolving the dispute or halting work.
"We hope they`re reasonable and let the work finish," he said. "But we have no qualms about working with another contractor."
