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Panama Canal Project Called ‘Disaster’ in U.S. Cable

Panamanian Vice President Juan Carlos Varela called the Panama Canal expansion a “disaster” after a group led by Spain’s Sacyr Vallehermoso SA won a $3.1 billion contract to accommodate larger ships, a confidential U.S. diplomatic cable said.

The cable, released by WikiLeaks and published today in Madrid’s El Pais newspaper, said that Varela expressed concerns that Sacyr is in “deep financial trouble” and may not be able to complete the work.