Monday , 23 September 2019
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After months of negotiations, the Panama Canal Authority (ACP) unveiled the final financing structure for the Panama Canal Expansion Programme on October 14, having accepted offers from five major multilateral agencies from Europe, Asia and Latin America. The US$2.3bn financing package will cover a portion of the US$5.25bn total cost of the project.

Panama Canal finalises expansion finance deal

The Japan Bank for International Cooperation (JBIC) has agreed to contribute US$800m, the European Investment Bank (EIB) US$500m and the Inter-American Development Bank (IDB) US$400m. The International Finance Corporation (IFC) and Corporación Andina de Fomento (CAF) will each contribute US$300m. The negotiated financing structure includes favourable provisions for the ACP, including a 20-year amortising period with a 10-year grace period.

In ceremonies held at the Palacio de las Garzas, Panamanian President Martín Torrijos said: “The Canal is again a matter of pride for all of us: it is the object of immense satisfaction for the entire nation that in the midst of global uncertainty, multilateral agencies have reinforced their confidence in Panama. This is the voice of the international community expressing solid support for a Panamanian project that will serve world commerce and international trade.”