Panama Canal discussing new financing proposal with consortium

Reuters News
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Posted: Jan 21, 2014 12:43 PM

PANAMA CITY (Reuters) - The Panama Canal Authority said on Tuesday it was discussing a new financing proposal with the Spanish-led consortium expanding the waterway and insurer Zurich aimed at ensuring work continues on the project, which faces huge cost overruns.

Canal Administrator Jorge Quijano said the consortium, which is led by Spanish builder Sacyr, had told him it would not stop work on the project before at least the end of January.

Earlier this month the consortium had threatened to stop work by January 20 unless the Panama Canal agreed to foot the bill for $1.6 billion in unforeseen additional costs.

(Reporting by Lomi Kriel; Writing by Simon Gardner)