Panama rejects proposal in canal cost dispute

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.”