President Torrijos of
Panama Announces
Financing Structure for
Canal Expansion Program
PANAMA - In what is
considered to be a
significant development
for the Panama Canal,
the country of Panama
and the Latin American
region, Panamanian
President Martin
Torrijos announced
yesterday the final
financing structure for
the historic Panama
Canal Expansion Program.
At a time of global
financial and economic
uncertainty, this
financial package
reinforces Panama's
economic growth and
political stability,
including the strong
financial position and
management of the Panama
Canal.
Five major multilateral
agencies from Europe,
Asia and Latin America
have offered to finance
the Canal expansion
project, and the Panama
Canal Authority (ACP),
after months of
extensive negotiations,
has accepted the banks'
offers.
The $2.3 billion
financing package will
cover a portion of the
$5.25 billion total cost
of the project.
The negotiated financing
structure includes
favorable provisions for
the ACP including a
20-year amortizing
period with a 10-year
grace period.
In ceremonies at the
Palacio de las Garzas,
Panamanian President
Martin Torrijos said:
"The history of the
Canal has been marked by
different milestones.
We, as Panamanians,
thought that expanding
the Canal was
imperative. Today, this
is a reality. The ACP
has approved the
financing for the
Expansion Program and it
has the resources it
needs. 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."
Since the handover of
the Canal from the
United States to Panama
on December 31, 1999,
the ACP has shifted its
operations from a
not-for-profit utility
to a market-oriented
business model - one
that is focused on
customer service and
reliability.
Under ACP management,
there has been a
significant reduction in
the time it takes to
transit the Canal, an
increase in tonnage
transiting the waterway
and a spike in transits
of Panamax-size vessels.
The Panama Canal
Authority (ACP) is the
autonomous agency of the
Government of Panama in
charge of managing,
operating and
maintaining the Panama
Canal. The operation of
the ACP is based on its
organic law and the
regulations approved by
its Board of Directors.
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