Panama Canal Signs Locks Construction Contract

The Panama Canal Authority signed the contract for construction of its third set of locks with Grupo Unidos por el Canal, the international consortium that won the bidding for the project on July 16.

The base price of $3.12 billion submitted by Grupo Unidos was lower than the canal authority’s target price of $3.48 billion and lower than the bids of the other two bidding groups.

The canal authority signed the contract after receiving a $400 million performance bond and $50 million payment bond on Aug. 11.

Jorge de la Guardia, the canal authority’s executive manager and contracting officer for the Locks Project Management Division issued the notice to commence work slated for Aug. 25.

Grupo Unidos por el Canal consists of Sacyr Vallehermoso of Spain, Impregilo of Italy, Jan De Nul of Luxembourg, and Constructora Urbana of Panama.

The scope of work included in the contract encompasses the design and construction of the Canal’s new set of locks and water-saving basins on both the Pacific and Atlantic ends of the Canal.

Contact Peter T. Leach at pleach@joc.com.