Panama seeking funding for canal expansion

The Panama Canal Authority is seeking $2.3 billion in financing before the end of the year to pay for expansion.

At a Latin America Investment Summit organized by Reuters, Canal Administrator Alberto Aleman Zubieta said his agency is speaking to banks about a $2.3 billion package to help fund the $5.25 billion project.

The news service said Aleman Zubieta did not think the financial problems growing out of the subprime mortgage mess would present a major problem, stating that the canal has good credit and that there is a light to quality projects such as the canal.

Reuters said that on Tuesday, the canal awarded a $177 million contract to the Belgian firm Dredging International to excavate at the at the Pacific entrance of the canal.

Construction of a third set of locks for the canal, the most expensive part of the project, is slated to begin early next year. 

Source: American Shipper