Panama Canal chief reports agreements in principle to solve some parts of expansion dispute

Panama Canal Administrator Jorge Quijano says the agency has reached tentative agreement on some issues in efforts to resolve a dispute that has halted work on a major expansion plan.

But Quijano also says the Authority might take over the project if no final agreement with the contractors is reached this week. He spoke Wednesday during a chamber of commerce meeting.

The contractors say work has gone $1.6 billion over budget and they have demanded the authority pay.

The dispute has threatened to delay the biggest expansion of the canal since it opened a century ago.