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Panama Canal expansion: Spain steps in to negotiations

4 January 2014 Last updated at 09:26 GMT

The Spanish government is in talks with Panama to try to resolve a row over the expansion of the Panama Canal.

Work which began on the expansion of the shipping hub in 2009, has gone over budget by $1.6bn (£1bn).

The group behind the project, led by Spanish company Sacyr, has threatened to halt work unless the extra money is paid.

Spanish public works minister Ana Pastor and Sacyr's chairman, Manuel Manrique, are flying to Panama to join the negotiations.

Susannah Orchard reports.