The Spanish-led consortium working on a giant project to expand the Panama Canal is threatening to suspend the operation if its demands for payment are not met.<br /><br />It has warned the Panama Canal Authority that work will stop in three weeks’ time in a row over who is responsible for cost overruns. Led by Spain’s Sacyr Vallehermoso, the consortium – which also includes Impregilo of Italy, Belgian firm Jan De Nul and Panama’s Constructora Urbana – is claiming $1.6 billion (1.16 billion euros).<br /><br />The project – to build new locks to accommodate larger ships of up to 12,000 containers instead of the current 5,000 – is nine months behind schedule and is now due for completion in June 2015.<br /><br />Shortly after work began in 2009, there was a four-month delay as the authority considered the cement the consortium was using to be of poor quality.<br /><br />The canal’s administrator Jorge Quijano accused the group of trying to force it to renegotiate outside the terms of the contract.
