Panama Canal, consortium reach deal to complete work: source

Reuters News
Posted: Feb 27, 2014 9:51 PM

PANAMA CITY (Reuters) - The Panama Canal and a Spanish-led consortium expanding the waterway have reached a deal to complete work on the project, which has been stymied by a bitter stand-off over cost overruns, a source familiar with the negotiations said on Thursday.

The deal foresees the consortium, which is led by Spanish builder Sacyr alongside Italy's Salini Impregilo, finishing work by December 2015.

Both the Panama Canal Authority and the consortium would each inject $100 million for immediate cash flow needs to fully resume work, the source told Reuters.

(Reporting by Lomi Kriel)