IFC approves Panama Canal expansion loan

IFC approves Panama Canal expansion loan The board of the International Finance Corp., part of the World Bank, on Thursday gave final approval for a $300 million loan to the Panama Canal Authority to support the expansion of the Panama Canal.
   The expansion project includes dredging the approaches to the canal, adding a new set of locks to handle bigger ships and widening navigation channels.
   The Panama Canal Authority has estimated the project, which will double the canal’s capacity, will cost $5.25 billion. The IFC loan is for 20 years.
   'IFC's participation in the Panama Canal expansion project, at a time of a global financial crisis, reflects our confidence in one of the most important infrastructure projects in Latin America and the Caribbean,' said IFC Chief Executive Officer Lars Thunell.
   The loan follows a private sector financing model without sovereign guarantees by the government of Panama.