PANAMA CANAL

EXPANSION
PROGRAM
2010
 Expansion Program
Components
1

Post-Panamax Locks
Construction of new Post-Panamax locks on the Pacific and Atlantic
sides. The new locks complexes will have three chambers each with
water-saving basins, a lateral filling and emptying system and rolling
gates.
2
3
Pacific Access Channel
4 Excavation of the new Pacific Post-Panamax locks north access
5 channel. The project requires the dry excavation of approximately 49
million cubic meters of material along 6.1 kilometers. Executed in four
different phases (PACs 1 – 4).

Improvements to Navigational Channels

Involve dredging of the existing navigation channels to enable the
6
safe navigation of Post-Panamax vessels through the expanded Canal.

Improvements to Water Supply

8 Call for an increase of Gatun Lake’s maximum operating level by 45
7
centimeters to improve Canal water supply and draft dependability.

A
10

G
F

11

A. Atlantic entrance deepening and

widening
B. Atlantic Post-Panamax locks
C. Rising Gatun Lake's maximum
1. Culebra Cut 10. Pacific Post-Panamax operation level
2. PAC-1 locks D. Deepening and widening of Gatun
3. MEC-1 11. Pacific Entrance Lake and Culebra Cut navigational
4. PAC-3 Dredging channels
5. MEC-2 - Page 3 - E. Post-Panamax locks Pacific access
6. PAC-4 12. Atlantic Entrance channel
7. MEC-3 Dredging F. Pacific Post-Panamax locks
8. Miraflores Lake 13. Atlantic Post-Panamax G. Pacific entrance deepening and
9. PAC-2 locks widening
14. Gatun Lake

2
Projects

By August 31, 2010, contracts for the amount of

$4,190 million had already been awarded

Excavation of the Pacific Access Channel Phase 1

This contract was awarded on July 17, 2007 to Panama – based

Constructora Urbana S.A. (CUSA) for a total of B /. 41.1 million. It was
completed during the first quarter of 2010 and its activities included
the leveling of Paraiso Hill from its original 136 meters to 46 meters 12
above sea level. In achieving this, CUSA removed a total of 7.3
million cubic meters of material.

The contract also included the cleaning of a total 146 hectares of

firing ranges, known as MEC (munitions and explosives of concern)
areas, and the relocation of 3.6 kilometers of the Borinquen road.

September 2007 July 2009

Excavation of the Pacific Access Channel Phase 2

This contract was awarded on November 27, 2007 to Cilsa Panama -

Minera Maria, for a total of B /. 25.5 million. It was completed during
the first quarter of 2010. Activities under the contract involved the
removal of 7.4 million cubic meters of material, the 3.5 – kilometer
diversion of the Cocolí River and the relocation of 1.3 kilometers of the
Borinquen road. Construction of this road began in May 2008.

13

14
The new Borinquen road.

3
View of the work under the third phase of the dry-excavation from the Centennial Bridge.

Excavation of the Pacific Access Channel Dredging of the Pacific Entrance

Phase 3 Navigational Channel
The ACP awarded this contract on December 16, 2008, This contract was awarded on April 1, 2008 to Belgian
to Constructora Meco S.A., for a total of $35.5 million. company Dredging International for a total of $177.5
This contract includes the excavation, removal and million.
disposal of 8 million cubic meters of material, leveling of
Paraiso Hill from 46 to 27.5 meters above sea level and The project consists of the widening of the Panama
clearing of 190 hectares of MEC areas. Canal Pacific entrance navigational channel to a
minimum 225 meters and deepening to 15.5 meters
Excavation of the Pacific Access Channel below mean low water level, as well as partial
construction of the Pacific Post-Panamax locks south
Phase 4 access. A total of 8.7 million cubic meters of material
will be removed under this project.
The ACP awarded this contract on January 7, 2010 to
consortium ICA-FCC-MECO, for a total of $267.8 million.

PAC-4 includes the excavation of nearly 26 million cubic Dredging for the Deepening and
meters of unclassified material; construction of the Widening of Gatun Lake and Deepening
2.3-kilometer long Borinquen dam that will separate the of Culebra Cut
waters of Miraflores Lake from the new channel; and
clearing of 80 hectares of MEC-contaminated areas. ACP personnel is responsible for dredging work for the
deepening and widening of Gatun Lake, as well as the
deepening of Culebra Cut, from which 20 million cubic
meters of material will be removed.

To complete this project, the ACP is using in-house and

leased equipment.

Dredging of the new Pacific Access

Channel North Approach
ACP awarded this contract to dredging company Jan De
Nul n.v. on August 16, 2010, for a total of $54.5 million.

The project entails dredging of the Pacific access

channel north approach, which will link the new locks on
Ongoing work on the Borinquen cofferdam. the Pacific to Culebra Cut.

4
Its activities include the excavation and dredging of
nearly 4 million cubic meters of material, widening to
218 meters and deepening to 16.76 meters below mean
lake water level along 1.6 kilometers on the area of the
north access channel that will join the Third Set of Locks
on the Pacific with Culebra Cut. Proposals for this
contract's public bid were submitted on August 6, 2010.
This is the last excavation and dredging contract to be
awarded under the Canal Expansion Program.

Dredging of the Gatun Lake North Access

Channel
Equipment deployed for dredging activities on the Atlantic side.
On June 4, 2010, the ACP awarded Dredging
International a $40 million contract to dredge a section which will require dredging of some 14.8 million cubic
of the Gatun Lake north access channel. A total of 4.6 meters of material, and dry excavation of an additional
million cubic meters of material will be removed from 812 thousand cubic meters of material.
the area.
An area of approximately 13.8 kilometers is being
dredged and the existing Atlantic entrance navigation
channel is being widened from its 198 meters to a
minimum 225 meters, and the north access channel to
the new locks on the Atlantic side to a minimum 218
meters.

This contract includes the execution of an option for

additional deepening up to 16.1 meters, which
represents a volume of 2.3 million cubic meters of
material, at a cost of $16,411,600. Both volumes include
the 60-centimeter dredging tolerance.

Raising Gatun Lake’s Maximum

Operating Level
April 2009
May 2010
The project entails rising Gatun Lake’s maximum
operating level from 26.67 meters to 27.13 meters to
increase water supply for the operation of the expanded
Canal. Due to the increase in water level, it will be
necessary to modify certain infrastructure, including
hydraulic cylinders for the operation of the gates in
Pedro Miguel and Gatun locks, Gatun Spillway gates and
other ACP and third party facilities. The project is
scheduled for completion by September 2013.

Excavation work on De Lesseps Island.

Dredging of the Canal Atlantic Entrance

This contract was awarded to Belgian company Jan de

Nul n.v. on September 25, 2009, for a total of $89.6
million.

The work includes the deepening of the approach

channel to 15.5 meters below mean low water level,
Extension of Gatun Spillway gates

5
 Third Set of Locks

ACCESS
CHANNEL

LOCKS CONTROL
HOUSE

POST-PANAMAX
VESSEL

427 m
CHAMBERS WSB 1 WSB 2 WSB 3
55 m

APPROACH
STRUCTURE

POST-PANAMAX LOCKS
The new locks complexes will have three chambers each, water-saving basins on each level, a lateral filling and emptying
system and rolling gates.

WATER-SAVING SYSTEM
Water-saving basin (WSB) technology is the most With three water-saving basins per
efficient system to reduce the volume of water to be chamber, the new locks will save 60% of
used by the new locks. The WSBs work as the water used in a lockage. Even
water-damming structures located adjacent to the though the new locks have larger
lock chambers and connected to them through chambers, they will use 7% less water
culverts regulated by flow valves. per transit than the existing locks.

1
1 2
2
3 3
4
5

1 , 2 & 3 : Water is transferred by gravity to WSBs to be used on the following lockage.

4 & 5 : Once equalized, it moves to the next level and eventually to sea.

6
 General Information on the New Locks

EXISTING LOCKS NEW LOCKS

The use of rolling

gates will ease their
maintenance.

am ax
-pan
m ax Post
Pana
12.4m 15.2m
(39.5’) (50’)

GATE OPERATIONS
BUILDING
GATE RECESSES

ROLLING GATE 2

ROLLING GATE 1

GATES AND RECESSES

The new locks will require 16 rolling-type gates that will This results in increased lockage capacity and flexibility
operate from adjacent recesses located perpendicular to and provides for shorter and more cost-effective mainte-
the lock chambers. Such gate configuration allows each nance times.
recess to perform as a dry dock, which in turn enables
servicing the gates on site without the need to remove In contrast, the miter gates that are currently in operation,
them and therefore interrupt lock operations. do not have a recess, they need to be removed and trans-
ported to a dry dock whenever overhaul work is required.
This process requires the temporary interruption of lock
operations.

7
Design and Construction of the Third Set
of Locks
After little over a year of intensive administrative and
field work, efforts for the design and construction of the
Third Set of Locks by Grupo Unidos por el Canal, S.A.
(GUPCSA) progress under strict management by the
locks project management team.

The locks contract represents approximately 60 percent

of the overall budget for the Expansion Program, which
purports that the details of its administration are as
comprehensive as the contract itself.

The contractor has begun excavations in the future

locations of the locks chambers and water-saving basins Dry-excavation work in the area of the Third Set of Locks chambers
both on the Pacific and Atlantic sites, and completed the on the Atlantic side.
settlement of disposal sites for the excavated material.
The contractor already surpassed the one-million cubic
meter excavated material mark.

The project is executed under close and strict relocation operations as work progresses in the various
supervision by ACP Environmental Management and projects being executed under the Expansion Program.
Surveillance experts, who guarantee that all activities To date, a significant number of mammals, amphibians
comply with the Environmental Management Plan. (mostly frogs) and reptiles (among them crocodiles and
snakes) and a limited number of birds have been
A myriad of other activities is performed simultaneously rescued and relocated as part of this effort.
in the industrial parks, where temporary equipment is
being installed to support the construction of the locks. It was also established that for each hectare of forest
Similarly, assembly of the main plants to produce the affected by the works, two would be reforested. Under
concrete and crush the rock, along with all utility and this premise, contracts have been awarded to reforest
other installations required for the operation of these 565 hectares. The projects are located within the Omar
large industrial parks are being conducted. Torrijos National Park in Cocle; Forest Research Center in
Chiriqui; Chagres National Park in Panama; Volcan Baru
National Park in Chiriqui; Altos de Campana National
Environment Park in Panama; Camino de Cruces National Park in
Panama City; Montuoso Forest Reserve in Herrera and
In compliance with its commitment to protect and the mangrove reforestation project in the mouth of the
preserve the environment, the ACP along with the Chiriqui Viejo river in the Chiriqui province.
contractors for each component of the program and in
coordination with Panama’s National Environmental
Authority (ANAM), conducts wildlife rescue and

Dry-excavation work in the lock chamber footprint and industrial plant to support the construction of the Pacific locks.

8
 8.

7.

1.
5.
6.
2. 3.

1. Volcan Baru National Park - 30 ha

2. Chiriqui Viejo River Mangrove Area - 50 ha
4. 3. Forest Research Center - 100 ha
4. El Montuoso Forest Reserve - 50 ha
5. Omar Torrijos National Park - 150 ha
6. Altos de Campana National Park - 30 ha
7. Camino de Cruces National Park - 115 ha
8. Chagres National Park - 40 ha
Expansion Program reforestation projects.

Also, by the end of August 2010, the ACP had already The Expansion Program has also established a hotline
paid ANAM $3,562,374 as ecological compensation for (800-0714) and e-mail address
the execution of the Expansion Program. GUPCSA, which (ampliacion@pancanal.com) to provide general
is responsible for the design and construction of the information on the program as well as to respond to
Third Set of Locks, and the ACP, have also paid Panama's queries, complaints and suggestions related to the
Aquatic Resources Authority (ARAP) the amount of execution of the works.
$508,386 for the reforestation of mangrove areas.
The ACP has put in place a strict environmental
surveillance and monitoring program based on a
Accountability
five-level structure to guarantee compliance with the
environmental commitments of the program.
Fulfilling its responsibility to provide information about
the Expansion Program, and in compliance with Law 28
This structure is formed by the contractor's
of July 17, 2006, the ACP submits quarterly reports on
environmental personnel, ACP environmental
the progress achieved to the Executive Branch, the
surveillance personnel, an independent consultant
National Assembly, the Republic's Controller General, the
responsible for submitting compliance evaluations and
Ad-hoc Committee (formed by members of the civil
reports, and the international multilateral financing
society) and the multilateral financing agencies. The
agencies, which periodically receive reports on
contents of these reports can be accessed in the ACP
compliance with local and international environmental
Internet page www.pancanal.com for public
requirements. ANAM serves as the Panama
consultation. Fifteen reports have been published as of
government's monitoring agency.
the first quarter of 2010.
ANAM receives biannual reports on the environmental
development of the program and conducts joint
inspections with the ACP. To date, three main
environmental compliance reports have been submitted
to ANAM on the overall Expansion Program and more
than 20 joint inspections have been conducted.

Paleontological and Archaeological

Studies
In January 2010, the ACP renewed its contract with the
Smithsonian Tropical Research Institute (STRI) to locate
and analyze paleontological findings on the sites of the
Third Set of Locks project.

ACP specialists guided auditors from the Panama General Controller's As a result of this agreement, a paleontological potential
Office during a visit to the Expansion sites to verify the contracts under map for the Panama Canal Area was developed. Based
the Program.

9
 To date, more than 8,000 Panamanians from all around
the country have taken part of the expansion work from
the beginning of the Program in September 2007.

It is estimated that a similar number will be required for

the remaining phases of the project, which will add up
to 12,000 jobs created during the peak of the execution
of Panama's main infrastructure project.

Findings in the PAC-4 area include a series of stone-dressed trenches.

Archaeological surveys have confirmed that the trenches were built by
the U.S. military between 1912 and 1913.

on this map, a series of paleontological rescue activities

have been conducted on the site of the future Gatun
Locks on the Atlantic side and in the area of Cartagena
Hill on the Pacific side.

The ACP has continued conducting the technical

evaluation of archaeological findings in the expansion
areas. To date, the inventory of findings includes arrows
dating from the pre-Columbian era and bottles from the
beginning of the 20th century, which are being used to
document the pre-Columbian and historical reality on
this side of the country. A structure made of brick and Installation of dredging pipe in the PAC-4 disposal site.
cement mortar was also identified as a waste incinerator
built back in 1908. Financing

Archaeological findings are assessed and registered after On October 14, 2008, then Panama President Martin
they are categorized through bibliographic searches, and Torrijos Espino announced the Cabinet Council’s
then photographed and analyzed according to their authorization for the Panama Canal Authority (ACP) to
importance and historical relevance. negotiate the required $2,300 million financial support
for the expansion of the waterway with a group of
All the information is gathered in a results analysis multilateral and bilateral credit organizations.
report that is submitted as official correspondence to
Panama's National Cultural Institute (INAC) Historical From the beginning of 2007 through December 2009,
Patrimony Bureau for registration and archive and for the ACP administration conducted negotiations for the
use as reference material. financing of the Expansion Program, always keeping the
ACP Board of Directors informed and maintaining close
coordination with a liaison group designated by the
Labor Aspects Executive Branch.

When Panamanians cast their vote on October 22, 2006 After being authorized by the Cabinet Council, the ACP
to support the ACP’s plan to develop the colossal Canal Board of Directors proceeded to approve the signing of
Expansion Program, a commitment to training was financial support contracts with the following
immediately endorsed. institutions:

The government took advantage of this opportunity to FINANCING INSTITUTIONS

launch a program through which the National Institute European Investment Bank (EIB) $ 500 million
for Professional Formation and Human Resources Japan Bank for International Cooperation (JBIC) $ 800 million
Development (INADEH, its acronym in Spanish) would
train the workforce required for the program. This Inter-American Development Bank (IDB) $ 400 million
training has contributed to meeting the Expansion International Financial Corporation (IFC) $ 300 million
Program’s labor demand created mainly by the project to Andean Development Corporation (CAF) $ 300 million
build the Third Set of Locks.
Total $ 2,300 million

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Bid Price for the Main Expansion Project Contracts

Jay Cashman, Inc. 219% $ 89,968,160.00

Consorcio CONDOR PROIMPETROL Panamá 195% $ 79,960,263.11
Consorcio GRUPICA 178% $ 73,132,858.57
ASTALDI - GHELLA SPA 151% $ 61,930,269.41
Consorcio EPSA MASERING MURCIA 134% $ 55,224,233.40
PAC - 1 Consorcio CORESA 117% $ 48,204,942.14
International Undergroup Corp 116% $ 47,629,959.40
Consorcio CILSA-PMA MINERA MARIA 108% $ 44,459,871.73
CORP MS INTL.-MECO SANTA FÉ 106% $ 43,516,258.78
Constructora Urbana, S.A. 100% $ 41,094,000.00
OFFICIAL BUDGET 149% $ 61,208,966.00

International Undergroup Corp 242% $ 61,745,339.00

Consorcio ICA Panamá -ICA CV 180% $ 45,822,242.77
Consorcio CONDOR PROIMPETROL 167% $ 42,455,577.54
Consorcio M&S MECO SANTA FÉ 161% $ 40,986,400.04
PAC - 2 Consorcio Conalvias Retraneq 147% $ 37,492,853.18
Constructora Urbana, S.A. 121% $ 30,913,000.00
Consorcio MASERING CROMAS 120% $ 30,564,475.00
Consorcio Cilsa-Panamá Minera María 100% $ 25,489,200.30
OFFICIAL BUDGET 190% $ 48,459,296.00

Consorcio Cilsa-Panamá Minera María 204% $ 74,654,321.90

Consorcio Conalvias-Retraneq 167% $ 61,323,876.97
Constructora Santa Fe, Ltd. 126% $ 46,049,339.26
PAC - 3 Corporación M&S Int. 123% $ 45,218,642.00
Constructora Urbana, S.A. 104% $ 38,200,000.00
Constructora MECO, S.A. 100% $ 36,659,852.28
OFFICIAL BUDGET 186% $ 68,067,623.00

Odebrecht 142% $ 379,803,132.13

Jan De Nul n.v. - CHEC 134% $ 359,102,231.18
PAC - 4 ISC Panamá 110% $ 294,913,000.00
ICA-FCC-MECO 100% $ 267,798,795.99
OFFICIAL BUDGET 113% $ 302,374,000.00

Great Lakes Dredging and Dock Co. 219% $ 195,943,129.00

Boskalis-Dredging International 198% $ 177,611,840.00
Dredging
Van Oord Dredging 181% $ 162,182,828.00
Atlantic
China Harbor Engineering Co. Pilotec, S.A. 130% $ 116,732,224.00
Entrance Jan De Nul n.v. 100% $ 89,617,317.00
OFFICIAL BUDGET 118% $ 105,821,000.00

Jan De Nul n.v./Van Oord Dredging and Marine Contractors BV 273% $ 485,453,336.00
Dredging
Boskalis International BV 146% $ 258,851,577.20
Pacific
Dredging International 100% $ 177,500,676.78
Entrance OFFICIAL BUDGET 102% $ 181,096,000.00

Van Oord 245% $ 97,998,256.97

Boskalis International BV 214% $ 85,500,207.49
Dredging Great Lakes Dredge & Dock 181% $ 72,392,354.34
Gatun
China Harbor Engineering Co. (CHEC) 169% $ 67,377,423.00
Lake North
Reaches Jan De Nul n.v. 145% $ 57,856,939.00
Dredging International 100% $ 39,983,822.82
OFFICIAL BUDGET 159% $ 63,600,000.00

BKI-MECO 131% $ 71,344,784.00

Dredging Pacific
International Underground Corporation 101% $ 55,329,492.00
Access Channel Jan De Nul n.v. 100% $ 54,550,647.00
North Approach OFFICIAL BUDGET 104% $ 56,527,400.00

C.A.N.A.L. 186% $ 5,981,020,333.00

Design and
Bechtel Taisei Mitsubishi 133% $ 4,279,819,670.00
Construction
GUPCSA 100% $ 3,221,631,384.00
of the Locks OFFICIAL BUDGET 108% $ 3,481,000,000.00
100% 150% 200% 250% 300%

11
 For more information:
e-mail: ampliacion@pancanal.com
Tel.: (507) 800-0714