| MEXICO CITY
MEXICO CITY Jan 10 Sacyr, the Spanish
building company leading a consortium expanding the Panama
Canal, said on Friday it was making progress in negotiations
with the waterway's operator over financing to avoid a damaging
work stoppage on the massive project.
Visiting Panama, Sacyr Chairman Manuel Manrique played down
an acrimonious spat over cost overruns, in which the consortium
demanded more money from the canal administrator to continue
He told Reuters the consortium, which includes Italian
builder Salini Impregilo, would process its claim for
$1.6 billion in cost overruns via arbitration. The canal
authority and consortium have both floated financing proposals,
but it was not immediately clear how they would ensure cash-flow
in the short term to keep the project going.
Earlier this month, the consortium threatened to halt work
on Jan. 20 unless the Panama Canal Authority footed the bill.