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Panama Canal deal reached

Terms agreed to complete expansion

28 February, 10:34
Panama Canal deal reached (ANSA) - Milan, February 28 - A Spanish-led consortium expanding the Panama Canal has reached a deal with local authorities to complete the project - good news for the Italian contractor that is a major player in the consortium.

Work was halted earlier this month because of a dispute over cost overruns totalling $1.6 billion.

However, suppliers have reportedly been paid, freeing the way for work to resume.

Italian company Salini-Impregilo makes up 38% of the consortium working on the $5.25-billion expansion project.

The Spanish-led consortium, known as the as Grupo Unidos Por el Canal (GUPC), and the Panama Canal Authority have been locked in a dispute over the cost overruns for weeks.

Some 10,000 jobs have reportedly been affected by the dispute.