The current expansion of the Panama Canal has come to come to a halt due to unforeseen costs.
The Spanish company Sacyr won the bid to build the new locks for the Panama Canal expansion in 2009 when they proposed a cost of US$3.12 billion – which was considerably lower than the other competitors. Now they are saying they need another US$1.6 billion to complete the project.
The Panama Canal Authority are in talks with Sacyr of where the remaining funds will come from. Sacyr claims that the Canal Authority had flawed geological studies done and that is why the costs are so much higher than expected. The Canal Authority is denying this and wants Sacyr to cover the entire overrun costs.
The project is already 9 months behind and is now expected to open at the end of 2015.