The sudden breakdown of negotiations by the Panama Canal Authority (ACP) for the expansion works of the great Central American infrastructure at the beginning of the afternoon does not disturb Salini Impregilo too much in Piazza Affari. In fact, the Italian group, involved in the project through participation in the Gupc consortium (led by the Spanish Sacyr), loses 1,4% on the Stock Exchange at the beginning of the afternoon, a 4,272 €, after having recorded much greater losses in the morning, as soon as the news was heard from investors.
However, the situation remains unpromising. According to an estimate by the consortium, in the first place there is the immediate risk of job loss per 10.000 workers, with an estimated impact on about 40/50.000 people, in addition to the immediate impossibility of Gupc to pay domestic and foreign subcontractors and "billions of dollars of losses in terms of revenues for Panama and consequent impact in terms of lack of economic growth, generated by the delay in completing the Canal, which the insurer Zurich has estimated at least 3-5 years in the absence of an agreement”.
Furthermore, according to the general contractors, "years of arbitration and judicial disputes that will leave a shadow on the ACP and the Canal" begin, to which are added negative impacts in economic terms on ports, port authorities and companies that have made investments worldwide based on the expansion forecast of the Canal in 2015.
“It is clear – explains the consortium in an explanatory note – that it is impossible to expect private companies to finance a good 1,6 billion dollars in costs for a project that was to be financed entirely by ACP. The applicable Panamanian law itself requires a correct balance in the execution of the contract".
