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Panamanians 'back canal project' Panamanians 'back canal project'
(about 1 hour later)
Voters in Panama have given their approval to an ambitious project to expand the country's famous canal, preliminary results suggest.Voters in Panama have given their approval to an ambitious project to expand the country's famous canal, preliminary results suggest.
With more than 40% of the vote counted, almost 80% appeared to have backed the plan, the Electoral Tribunal said. With more than half the vote counted, almost 80% appeared to have backed the plan, the Electoral Tribunal said.
Many modern container ships are too large for the 50-mile (80km) canal linking the Pacific and Atlantic.Many modern container ships are too large for the 50-mile (80km) canal linking the Pacific and Atlantic.
The $3-5bn plan, which involves building a new channel and new locks, would double the canal's capacity.The $3-5bn plan, which involves building a new channel and new locks, would double the canal's capacity.
Earlier, President Martin Torrijos, who backs the plan, urged people to go and vote. President Martin Torrijos, who backs the plan, had urged people to go and vote.
See the route of the Panama Canal See the route of the Panama Canal
"This is a historic opportunity that we will always remember," he said. "It's perhaps the most important decision that this generation will make.""This is a historic opportunity that we will always remember," he said. "It's perhaps the most important decision that this generation will make."
Construction jobs Despite this, turnout was reportedly below 50%.
Supporters say the expansion will bring widespread benefits to the country, but opponents argue it will add to Panama's debt. Traffic jam
The canal was completed in 1914 and, despite a series of upgrades over the past 92 years, has failed to keep pace with the growing scale of cargo ships.
PANAMA CANAL FACTS Handles an estimated 5% of world tradeThe main goods shipped are oil products, grain and container cargoLast year the canal handled 14,000 transits, shipping 200m tons of cargoTraffic between Asia and the east coast of the US accounts for more than 40% of shipping Q&A: What is proposed?PANAMA CANAL FACTS Handles an estimated 5% of world tradeThe main goods shipped are oil products, grain and container cargoLast year the canal handled 14,000 transits, shipping 200m tons of cargoTraffic between Asia and the east coast of the US accounts for more than 40% of shipping Q&A: What is proposed?
"The canal is big business for all of Panama," mechanic Faustino Ortega told Associated Press news agency while waiting in line to vote. "Widening it will help the economy." Forty ships a day - 14,000 a year - pass through it, about 5% of all world shipping.
Journalist Maribel Cuervo told the BBC the money would be better spent on helping the country's poor. Traffic has become so heavy that vessels using the canal can face costly delays as they wait in a queue to pass through.
The Panama Canal Authority, which runs the waterway, has warned that if the canal is not expanded, business will be lost to other shipping routes, including the Suez Canal.
Nicaragua, to the north, is now planning its own canal between the Pacific and Atlantic oceans.
'Top source of income'
The expansion has been the subject of nationwide debate.
Supporters say it will bring widespread benefits to the country, but opponents argue it will add to Panama's debt.
"No" supporters faced a well-funded pro-expansion campaign
In Panama City, voters wearing green "Yes" T-shirts had far outnumbered opponents of the plan.
"Voting 'No' is like closing the door on the canal," boat salesman Leonardo Aspira told the Associated Press news agency.
"It's the top source of income for Panama and improving it means more money for the government and less poverty," he said.
But others have warned of corruption, and journalist Maribel Cuervo told the BBC the money would be better spent helping the poor.
"So how come the government is thinking [about] the maritime, commerce, and the shippers and all that? We have people living in extreme poverty.""So how come the government is thinking [about] the maritime, commerce, and the shippers and all that? We have people living in extreme poverty."
As many as 60% of Panama's three million people live in poverty, according to some estimates.As many as 60% of Panama's three million people live in poverty, according to some estimates.
Increased revenue from tolls is expected to cover some of the costs, but the plan still needs $2.3bn in loans.Increased revenue from tolls is expected to cover some of the costs, but the plan still needs $2.3bn in loans.
Thousands of construction jobs would be generated, along with many more indirect jobs.
But opponents are worried about cost overruns on the massive project, and that opportunities for corruption may prove too hard to resist.
Costly delays
Forty ships a day - 14,000 a year - pass through the canal, about 5% of all world shipping.
The canal was completed in 1914 and, despite a series of upgrades over the past 92 years, has failed to keep pace with the growing scale of cargo ships.
"No" supporters faced a well-funded pro-expansion campaign
Traffic has become so heavy that vessels still using the canal can face costly delays as they wait in a queue to pass through.
The BBC's Duncan Kennedy in Panama City says the canal can only handle vessels with a maximum of 5,000 shipping containers. But ships are now plying the seas that carry twice that number.
The Panama Canal Authority, which runs the waterway, warns that if the canal is not expanded, business will be lost to other shipping routes, including the Suez Canal.
Nicaragua, to the north, is now planning its own canal between the Pacific and Atlantic oceans.
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