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Panama rejects proposal in canal cost dispute

By Juan Zamorano
Published January 20, 2014 11:55pm ET
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Panama rejects proposal in canal cost dispute
In this Jan. 14, 2014 photo, a man fishes where a cargo ship sails en route to the Pacific Ocean in Panama City. The Panama Canal is being expanded to accommodate a new generation of larger ships, known as post-Panamax, which have more than twice the carrying capacity of those able to pass through the canal today. But cost overruns are threatening a work stoppage on the canal's expansion. (AP Photo/Arnulfo Franco) | Arnulfo Franco

PANAMA CITY, Panama (AP) — The Spanish-led consortium working on expanding the Panama Canal said Monday it has proposed that the canal authority help co-finance $1.6 billion in cost overruns on the huge project. The Panama Canal Authority rejected the idea.

The United for the Canal construction group led by Spain’s Sacyr Vallehermoso has threatened to halt the biggest part of expansion project if the financial dispute isn’t resolved, although it said Sunday that a stoppage was “not a scenario being considered at this moment.”

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