The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Panama: Expansion plan puffs canal

Despite a collapse in bank financing lines and the export markets, the Panama Canal expansion project will be an attractive investment in 2009, according to the Panama Canal Authority.

The project secured funding from five multilateral agencies in November and strong competition is expected for the coming licence auctions.

In March 2009, the Panama Canal Authority (ACP) will finally award the new locks contract to a consortium of constructors. Four different groups are fighting for the contract: "We don’t see any problems ahead that could jeopardize this expansion project. The four groups confirmed again in November that they are committed to putting together a bid and they are all diligently working to meet the deadline," says Franciso Miguez, executive manager at the ACP.

In addition, the ACP has managed to raise $2.3 billion in 20-year loans with a 10-year amortization and a 10-year grace period from multilateral agencies, including the Inter-American Development Bank, the Andean Development Corporation (CAF) and International Finance Corporation, making it clear that these banks are confident about the project. Mizuho Corporate Bank is exclusive financial adviser on the agreement.

The loans are unsecured, and untied, therefore the money can be drawn down gradually when required, and no single loan is tied to any specific part of the project.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree