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Weekly Report - 13 February 2014 (WR-14-06)
PANAMA: Struggling to keep up appearances
Panama’s international image has received a few knocks of late. Last week Jorge Quijano, the director of the Panama Canal Authority (ACP), confirmed that “almost all activity has ceased” on the US$5.3bn Panama Canal expansion plan, which was scheduled for completion in June 2015. This followed reports that talks between the ACP and Grupo Unidos por el Canal (GUPC), the international consortium in charge of constructing the third set of locks, over who should pay for the US$1.6bn cost over-run [WR-14-01] had broken down. These reports came less than a week after the foreign minister, Fernando Núñez Fábrega, stepped down, reportedly at the behest of President Ricardo Martinelli, in the wake of a series of diplomatic gaffes.
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