Panama wins $2.3 bln for major canal expansion
Tuesday, October 14 2008 @ 06:56 PM UTC
Contributed by: Don Winner
Kuzniecky said Panama had received offers from commercial banks worth $400 million, but they would not be taken up.
The loan represents around 40 percent of the total cost of the project and will pay for the design and construction of the new locks that will double the canal's capacity by 2014.
The remainder will be paid though the canal's tolls and other revenues, which in the financial year 2007 totaled around $2 billion.
The United States opened the canal in 1914 and handed over control to Panama on Dec. 31, 1999.
The breakdown of the loan is as follows: $800 million from the Japanese Bank for International Cooperation, $500 million from the European Investment Bank, $400 million from the Inter-American Development Bank, and $300 million each from the Andean Development Corporation (CAF) and World Bank's International Finance Corporation. (Editing by Jim Marshall)