A planned extension of the Panama Canal was thrown into doubt on Wednesday after a group of companies said its talks with Panama’s government over how to expand the canal had fallen apart.
Group United for the Canal, a consortium led by Spanish builder Sacyr, said 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 Panama Canal Authority said it would hold a news conference at 9 a.m. local time.
It was unclear whether Wednesday’s breakdown was final. If the partnership between Panama and the builders is indeed abandoned, it would likely mean further delays while Panama seeks financing and a new construction group.