PANAMA CITY–The board of directors of the Panama Canal Authority has voted to approve a deal to end a dispute over US$1.6 billion in cost overruns with the European-led construction consortium that is expanding the waterway.The deal was initially announced in late February, after work on the project resumed following a two-week stoppage by the consortium.
A statement Friday from the authority says it and the consortium led by Spain's Sacyr will each inject US$100 million to resume work. Appropriate legal venues are to decide disputes over the remaining amount.The deal is aimed at allowing the project to finish by December 2015.The US$5.25 billion expansion project will allow extra-large tankers and container ships to use the Panama Canal and cut travel time between Asia and the eastern US.
AP