PANAMA CITY (Reuters) - Most work on a project to expand the Panama Canal has stopped after talks with a Spanish-led building consortium over massive cost overruns broke down, an official from the waterway’s administrator said on Wednesday.
Group United for the Canal, a consortium led by Spanish builder Sacyr, said earlier in a statement that the government’s canal authority had broken off talks on who will pay some $1.6 billion needed to complete the ambitious project.
The canal is one of the world’s most important shipping routes. The entire project was due to cost about $5.25 billion, but the disputed overruns could bump that up to nearly $7 billion.
Reporting by Lomi Kriel; Editing by Simon Gardner