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Panama Canal authority proposes negotiated to dispute that threatened to halt expansion

Associated Press
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People visit the Panama Canal in Gatun, north from Panama City, Panama, Friday, Jan. 3, 2014. The consortium responsible for most of the expansion of the canal issued an ultimatum giving the Panama Canal Authority under a month to pay for a cost overrun to build a third set of locks, threatening to halt the Panama Canal's expansion. (AP Photo/Arnulfo Franco) (The Associated Press)

Panama's Canal Administrator Jorge Quijano talks to the press after a meeting with representatives of the consortium charged with the canal expansion project in Panama City, Tuesday, Jan. 7, 2014. Quijano and other Panamanian officials met with representatives of a consortium responsible for the canal's expansion to try to avert a suspension of work on the project. (AP Photo/Arnulfo Franco) (The Associated Press)

Construction workers labor at the site of the Panama Canal's Pacific expansion project in Cococli, on the outskirts of Panama City, Saturday, Jan. 4, 2014. The consortium responsible for most of the canal expansion issued an ultimatum giving the Panama Canal Authority under a month to pay for a cost overrun to build a third set of locks, threatening to halt the Panama Canal's expansion. (AP Photo/Arnulfo Franco) (The Associated Press)

The Panama Canal Authority says it wants to end a standoff over the expansion of the canal by splitting the cost with the international consortium that was threatening to halt work unless the authority came up with $1.6 billion in extra funding.

The authority said Tuesday that it would pay $183 million and Grupo Unidos por el Canal would put in $100 million.

The Spanish-led consortium would withdraw its threat to halt work on the canal on Jan. 20. The consortium offered no immediate response to the authority's offer.

The consortium is formed by Spain's Sacyr Vallehermoso, Impregilo of Italy, Jan De Nul of Belgium and Constructora Urbana SA of Panama. It says unexpected problems with the quality of material supposed to be used to make cement spawned massive overruns.