Panama Canal secures $400 million loan

The Inter-American Development Bank board of directors on Friday approved a $400 million loan to help the government of Panama finance the expansion of the Panama Canal.

A tentative agreement for the loan was announced in September.

Work began last year to build a third set of locks on both sides of the strategic isthmus that can accommodate 12,000-TEU vessels, more than double the size of vessels that can currently transit the 50-mile canal. The project is estimated to cost $5.2 billion and be completed by 2014.

The Panama Canal Authority is also meeting with other financial institutions about supporting the expansion plan.