Panama Canal Cement Dispute Goes to Arbitration

zoom The Panama Canal Authority (ACP) and the consortium expanding the canal have separately sought international arbitration over a cement quality dispute. The ACP wants a panel of international arbitrators to review a decision to award USD 234 million to Grupo Unidos por el Canal (GUPC), the contractor for the design and construction of the third set of locks, formed by Sacyr of Spain, Salini – Impregilo of Italy, Jan De Nul of Belgium and Constructora Urban, SA (CUSA) of Panama. The request for arbitration was filed almost two months after the Dispute Adjudication Board (DAB) ruled in favor of GUPC, saying ACP should pay USD 234 million and extend the contract duration for another six months. DAB, an independent technical body established within the framework of the agreement between GUPC and ACP, ruled in favor of GUPC in two major claims related to poor quality basalt (main material for the production of concrete in the project) and the delay attributed to ACP in approving the concrete mixture used in the work. GUPC has filed a request for international arbitration asking for additional USD 345 million. The consortium is seeking a total of USD 2.3 billion in the dispute. The canal authority said that any international arbitration will be done in Miami. World Maritime News Staff