By: Bernardo González, Project Director December 5, 2011

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1 By: Bernardo González, Project Director December 5, 2011

2 EXPANSION OF THE PANAMA CANAL 0INDEX 1. THE JOINT VENTURE 2. THE PROJECT 3. THE BID AND THE CONTRACT 4. DESIGN & CONSTRUCTION 5. MAJOR QUANTITIES 6. ENVIRONMENT

3 EXPANSION OF THE PANAMA CANAL 0THIRD SET OF LOCKS PROJECT Third Set of Locks Render

4 EXPANSION OF THE PANAMA CANAL 0EMPLOYER, THE JOINT VENTURE AND MAJOR SUBCONTRACTORS Employer: ACP (Autoridad del Canal de Panama) Contractor: GUPC ( Grupo Unidos por el Canal) Designer: CICP: (USA, Argentina, Holand and Italy) Montgomery Watson Harza (Leader) -IV Groep Tetratech Sembenelli Consultant Subcontractor Lock Gates Fabrication and Installation: Cimolai - Italy Subcontractor Locks and Water Saving Basins Valves Fabrication and Installation: Hyundai South Corea

5 PROJECT DESCRIPTION 1THE PROJECT Foresees.. the construction of the structures necessary for the transit of the Post Panamax ships generation. The Third Set of Locks project Is the most important of all parts of the project which include: Access channel in the Pacific Ocean side (dredging contract) Access channel in the Atlantic Ocean side (dredging contract) Connection channel between the pacific locks and the existing channel (CAP 1 through CAP 4) Enlargement and deepening of the existing channel. Assures.. that the works are being carried out in a coordinated manner in order to have the operation of the new installations in the year 2014 accomplishing 100 years of the start of the operations of the Panama Canal.

6 PROJECT DESCRIPTION 1LOCATION OF THE NEW LOCKS Locks in the Atlantic Gatun Locks Pedro Miguel Locks Miraflores Locks Locks in the Pacific

7 PROJECT DESCRIPTION 1THE LOCKS PROJECT LOCKS AND SHIPS SIZES 33.5 m (110 ) 32.3 m (106 ) m (39.5 ) 4,400 TEU 12.8 m (42 ) 49 m (160 ) 18.3 m (60 ) 12,600 TEU 15.2 m (50 ) TEU Twenty-foot equivalent unit capacity in container transportation

8 PROJECT DESCRIPTION 1THE LOCKS PROJECT Postpanamax Ship Ocean Channel Locks Section Lock Lake Water Intake for the WSBs WSB 1 WSB 2 WSB 3 Chamber Conduits NEW LOCK CHAMBERS DIMENSIONS: Width: 55 m (180 ) Lenght: 427 m (1,400 ) Water height: 18.3 m (60 )

9 2THE THIRD SET OF LOCKS WORKS 2ATLANTIC SIDE GENERAL PLAN ATLANTIC APPROACH CHANNEL WING WALLS LOWER CHAMBER MIDDLE CHAMBER UPPER CHAMBER WING WALLS GATUN ACCESS CHANNEL

10 THE THIRD SET OF LOCKS WORKS 2PACIFIC SIDE GENERAL PLAN PACIFIC APPROACH CHANNEL WING WALLS UPPER CHAMBER MIDDLE CHAMBER LOWER CHAMBER WING WALLS PACIFIC ENTRANCE CHANNEL

11 PHASES OF BID, ADJUDICATION AND CONTRACT CONTRACT 3RELEVANT DATES JULY 15, 2009 AUGUST 11, 2009 AUGUST 25, 2009 CONTRACT ADJUDICATION LETTER OF ACCEPTANCE DELIVERY OF THE PERFORMANCE BOND: US$ 400 MILL. AND PAYMENT BOND: US$ 50 MILL. BY GUPC JOINT VENTURE THROUGH ITS ASSURANCE FIRM ZURICH AMERICAN INSURANCE COMPANY COMMENCEMENT DATE OF WORK ORDER COMMITIONING DATE: OCTOBER 21, 2014

12 CONSTRUCTION METHODS 3SCHEDULE, PENNALTIES AND BONUSES TIME SCHEDULE : Time for the performance of the works : 1,883 days (5 years and 2 months) Latest finishing date: October 21, 2014 PENNALTIES AND BONUSES : Bonus for early completion : 215,000 US$ / day - MAX. 50 MILL. US$ Delay damages : US$ /day - MÁX. 54,6 MILL. US$

13 CONSTRUCTION METHODS 4DESIGN AND CONSTRUCTION The Design and Build of the Third Set of Locks has to take into consideration several fundamental elements : The complexity of the geology in the Pacific side The active faults in the Pacific side and the consequent high seismicity expected in this area The fact that only in the Pacific side suitable rock for the concrete production is available The presence of recent sedimentary and unstable deposits in the Atlantic side and in part of the Pacific side The very strict requirements for the locks distinguished maneuvers and operation The minimum acceptable interruption timing for maintenance services The negative effect of the rainy season on the production during construction phase The short schedule time available for the huge foreseen quantities

14 CONSTRUCTION METHODS 4DESIGN AND CONSTRUCTION HYDRAULIC OPERATION - CONDUIT SYSTEMS WSB INTAKES INTAKE TRIFURCATIONS CONDUITS CONDUITS

15 CONSTRUCTION METHODS DESIGN AND CONSTRUCTION 4Mathematical Model Water Flow Analysis

16 CONSTRUCTION METHODS 4GATES HANDLING AND INSTALLATION GATES UNLOADING W/ MULTIWHEELS GATE MOVE TO INSTALLATION SPOT GATE MANEUVER INTO SLOT GATE POSITIONING INTO SLOT GATE RESTING WATER TEST

17 WORK PROGRESS 5MAJOR QUANTITIES AS OF NOVEMBER 2011 WORK PROGRESS AS OF NOVEMBER MAJOR QUANTITIES FORESEEN ACTUAL % Labor & Employees GUPC un 7,500 5,506 73% Subcontracts un 2,900 2,303 79% Industrial Plants % % Earthmoving Equipment % % Concrete Equipment % % Excavation m3 41,400,000 19,900,000 48% Quarry & Borrow m3 10,300, ,000 8% Dredging m3 8,200,000 2,500,000 30% Fill, Back Fill & Filters m3 20,600,000 2,250,000 11% Concrete m3 4,620, ,000 6% Reinforcement Steel t 290,000 15,800 5% Cement and Pozzolan t 1,500,000 67,700 5% Gates and Valves t 71, %

18 WORK PROGRESS 5Concrete To have a clear idea of the amount of concrete that will be use in the design & construction of the third set of locks: Keops Pyramid: 2,200,000 m3 20 floor building: 10,000 m3 Pacific locks - 2,550,000 m3 = 1.2 Keops pyramid = floor building Atlantic Locks - 2,270,000 m3 = 1 Keops pyramid = floor building

19 WORK PROGRESS 5Steel To have a clear idea of the reinforcement steel that we are using in the design and construction of the third set of locks: Eiffel Tower: 10,000 ton Pacific Locks 169,000 ton = 16.9 Eiffel Towers Atlantic Locks 121,000 ton = 12.1 Eiffel Towers 29 Eiffel Towers

20 WORK PROGRESS 5ATLANTIC SITE ATLANTIC SITE 2010

21 WORK PROGRESS 5ATLANTIC SITE ATLANTIC SITE 2010

22 WORK PROGRESS 5ATLANTIC SITE General View of Atlantic Locks Construction Area

23 WORK PROGRESS 5PACIFIC SITE APRIL 2010

24 WORK PROGRESS 5PACIFIC SITE APRIL 2010

25 WORK PROGRESS 5PACIFIC SITE 1939 Excavation Muck Removal & Aguadulce Hills

26 WORK PROGRESS 5PACIFIC SITE GENERAL VIEW INDUSTRIAL AREA

27 WORK PROGRESS 5PACIFIC SITE GENERAL VIEW CARTAGENA LOADING DOCK

28 WORK PROGRESS 5PACIFIC SITE STEELYARD - 8,000 T/MONTH

29 WORK PROGRESS 5ATLANTIC & PACIFIC SITE Fabrication of Gates at Cimolai Workshop (Italy). Work Progress

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