PANAMA REPORT: Canal Banks on Funds
Global evaporation of liquidity has put several large LatAm infrastructure projects on ice. The Panama canal says it can continue unhindered, with the help of multilaterals.
by Andrew Beatty
With capital markets reeling, the Panama Canal Authority
(PCA) has turned to multilateral lenders to secure almost half
the $5.25 billion it needs to double capacity of the 80
kilometer waterway. Five major lenders are working on joint
terms to provide loans of more than $2.3 billion to pay for the
creation of a third set of locks, the single biggest part of
Financing should be in place by the end of the year, when
the engineering contract is also awarded to one of four
consortia that include the worlds largest construction
firms. According a the canals administrator Alberto
Aleman, $800 million would come from JBIC, $500 million from
the EIB, $400 million...
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