The ACP beats GUPC arbitration claim for $ 98.8 million – La Estrella de Panama

Panama on the claims made by Grupo Unidos por el Canal (GUPC). Yesterday, the Panama Canal Authority (ACP) issued the decision of the Board Dispute Resolution (DAB, for its acronym in English) which rejects all claims made by the consortium, in which demand payment of $ 98.9 million and 76 day extension in the period of performance of the contract in the third set of locks.

tHIRD sET oF lOCKS

• the Panama Canal expected to close the cost of enlargement in $ 5.430 million.
• the GUPC claims total to date $ 3.600 million, which exceeds $ 282 million the initial project contract (bid by $ 3.118 million), excluding the years of maintenance or provisional figures, such as charges for scaling.

the decision, dated July 26, 2016, annuls one of the strongest claims GUPC against the ACP, as the DAB decided that the contractor claims are devoid of any merit in accordance with the contract and Panamanian law applicable.

the GUPC claim -led by the Spanish Sacyr Vallehermoso, Italy’s Impregilo, Belgium’s Jan de Nul and Constructora Urbana Panama is related to the additional costs incurred as a result of alleged adverse and unpredictable on the Site Pacific in particular physical conditions, the state of basalt was not suitable for the foundations of the structures of the locks and required adjustments, a situation that in October 2013, the ACP rejected that claim to determine that the supposed conditions found were predictable.

the failure of DAB in favor of the ACP pleased Juan Gabriel Gonzalez, president of the Panamanian Association of Business Executives (APEDA), who stated that claims GUPC were ‘harmful not only to the Panama Canal, but for the whole country. “

” for us it is very good news, because he has done justice to Panama, because the claims, as it highlights this international ruling, they lacked support and merit ‘he said.

‘ the country will no longer pay the huge sum of $ 99 million, which represented a violation of the original contract agreed between the ACP and GUPC ‘he added. The claims of the contractor who won the design and construction of the third set of locks total to date $ 3.600 million, which exceeds $ 282 million initial project contract (bid by $ 3.118 million), not including years of maintenance and provisional figures, such as charges for scaling. On the other hand, the DAB issued two decisions on claims related to laboratories and drain ponds excavations in 1939. In the dispute over laboratories, GUPC obtained $ 6.4 million from $ 7.6 million requested. In the complaint on the drain of the gaps, the contractor got $ 413.280 from $ 478.360 requested. The DAB is the Dispute Resolution Board, formed to hear disputes arising between the ACP and the contractor during the execution of the contract for design and construction of the third set of locks. Should one of the parties is dissatisfied with the decision of DAB, it may refer the dispute to an arbitral tribunal organized under the rules of the International Chamber of Commerce for a final decision.

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