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Panama Canal: Dispute grows over expansion project

6 February 2014 Last updated at 02:12 GMT

The Spanish building company leading the expansion project on the Panama Canal has denied that work at the waterway has been halted.

The Panama Canal Authority and the building companies involved are engaged in a dispute over who should foot $1.6bn (£1bn) in extra costs.

On Wednesday, the Panama Canal Authority (ACP) announced that talks with the Spanish-led consortium behind the project had broken down and that work had been halted at the site.

Will Grant reports.