Panama Canal builders threaten halt to expansion
Expansion to the canal began in 2009 The consortium constructing a massive expansion to the Panama Canal has threatened to halt work unless $1.6bn (£1bn) of cost overruns are paid.
Grupo Unidos por el Canal (GUPC) has given the Panama Canal Authority 21 days to resolve the dispute, before it halts work.
But the Authority says the consortium should respect the existing contract.
It argues the cost overruns are due to events that should be "normal" in such a construction project.
In a statement quoted by Panama media on Wednesday canal administrator Jorge Quijano said: "No matter what kind of pressure is exercised against the ACP (Panama Canal Authority), we maintain our demand that Grupo Unidos por el Canal respect the contract that they agreed to and signed."
Work on the $3.2bn expansion began in 2009 and construction is due to be completed in June 2015, nine months behind schedule.
The majority of the work involves building a third set of locks that can accommodate ships that can carry 12,000 containers.
At the moment the biggest ships that can navigate the canal carry 5,000 containers.
Shares in Spanish builder Sacyr, which is leading the GUPC consortium, plunged almost 8% in Madrid.
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