April 24, 2006

Panama to invest $5.25 billion to expand canal

PANAMA CITY (Reuters) - Panama will invest $5.25 billion to
expand its famous canal so it can handle the new generation of
mammoth cargo ships and oil tankers, top executives announced
on Monday.

The eight-year expansion project will require loans of up
to $2.3 billion but the entire project will be financed from
higher tolls and it will not add to Panama's sovereign debt,
said Alberto Aleman, chief executive of the Panama Canal
Authority.