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Panama Canal Proposal to Jointly Contribute $283 Million to New Locks Project

· ACP proposal: oTo advance $100 million of the contract (with bank guarantees) oTo extend two months the moratorium for the repayment of $8 million by !"#$% oTotal &$# contribution' $18 million · GUPC must: o!uarantee payment of $100 million o"se these funds to pay contractors and subcontractors o(hip to #anama the four lock gates) of which &$# has already paid *+,% ·All the payments ($283 million) to be done against milestones and deliverables

Panama City, Panama, January 7, 2 !" # To the best interest of each of the parties involved and abiding by the contract, the Panama Canal Authority (ACP) issued a proposal to the contractor of the new locks, Grupo nidos por !l Canal "#A# (G PC), for the $oint contribution of %&'( million to the pro$ect by the contractor and ACP# This contribution would allow to regularly continuing the works while the claims are resolved under the mechanisms established within the contract# ACP has forward a proposal to advance %)** million to G PC under the mechanisms included in the contract to allow the contractor to tend to its pending obligations# The contractor must guarantee these funds through a letter of credit# +n addition, ACP is willing to e,tend for a period of two months the moratorium for the repayment of %'( million in advances by G PC# These would give an additional %'( million for G PC# The ACP proposal totals %&'( million# -n the other hand, G PC must commit to pay %)** million to be used for the pro$ect# The %&'( million must be deposited in an account to pay the contractor and subcontractors# The payments will be done against milestones and deliverables by G PC# -ne of these includes the shipment to Panama of the four lock gates that should have arrived in .ovember and of which ACP has paid /01# 2urthermore, the consortium must rehire the workers needed and cancel the notification of intent to suspend the works#

$bout t%e Panama Canal $ut%ority &$CP' The ACP is the autonomous agency of the Government of Panama in charge of managing, operating

and maintaining the Panama Canal# The operation of the ACP is based on its organic law and the regulations approved by its 3oard of 4irectors# Please refer to the ACP website5 http566www#pancanal#com6 or follow us on Twitter 7thepanamacanal#