Panama Canal, consortium reach deal to complete work-source

PANAMA CITY Thu Feb 27, 2014 9:45pm EST

PANAMA CITY Feb 27 (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.