Panama Approves Canal Project; Referendum To Decide

Panama’s upper house, the Legislative Assembly has approved the project to expand the country’s historic canal and vital waterway, the first expansion since the Panama Canal was opened in 1914. The $5.25 billion project – of which around half will come from foreign financing – will now be put forward for public approval in a referendum. The plans to expand the Canal, to accommodate ships with greater capacity – so-called “post-Panamax” vessels – are not without their critics, who say the country will be overly indebted for work which is not essential.