Panama canal project

This is partially a follow-up blog from my post on 9-4-06, "Keeping up with modernization".

Panama has finally endorsed the $5.25 billion project to expand the Panama canal by adding a third set of locks that is 40% longer and 60% wider than either of the two previous locks. The project is fully funded by Pamana without any foreign aid.

I think this is a great way for Panama to grow, generating more jobs as well as more income for the country. It is predicted that the canal will generate $6 billion per year, considerably more than the current $1.2 billion per year (a 500% increase). The reason for this is that the locks will be able to support the world's largest vessels. Aside from that the price to use the locks will increase to support the project. The project is planned to be completed by 2014.

This is obviously a huge project. From the article in NY Times it seems that the only problem that may be encountered which casts doubt on the success of the project is the possibility of corruption and embezzlement of funds.

Since the Panama Canal was handed over to Panama by the US in 1999, operations have run smoothly and successfully. The canal is a huge source of pride for Panamanians, and they realize that the expansion of the canal is directly related to the expansion of their nation.