In earlier reports World Port Development reported that the Spanish-led consortium of Sacyr Vallehermoso and Italy’s Impregilo, each with a 48% stake – and also include Belgium’s Jan de Nul and Panama’s CUSA – imposed a deadline for payment of the over-run costs for the construction project. But now it seems that one day after the deadline the pact has been signed by all parties involved.
The pact signed on 1 August amends the original contract to include the terms of the agreement reached in March ending a dispute between the parties.
“What remains now is to continue working with the commitment to complete the expansion, which is currently at a 78% progress,” ACP Administrator Jorge L Quijano said.
Back in February the consortium halted work on the locks alleging a cash-flow crisis stemming from USD 1.6 billion in cost overruns that it insisted the ACP should cover. At the end of February the ACP announced that it had reached a conceptual agreement with the consortium to inject fresh funds into the project and ensure completion. The parties signed in March a Memorandum of Understanding embodying the terms of the conceptual agreement, which stated that the consortium would pay USD 100 million and ACP would advance USD 100 million to enable the work to continue.
According to ACP the incorporation of the MOU into the contract “does not include any payment for cost overruns or claims.” The MOU also mandated that insurer Zurich would convert a USD 400 million performance bond – which the consortium was required to take out as an insurance policy – into backing for a new loan to help fund the project. This week the consortium confirmed that it is close to securing the loan.