Panama Canal rejects call for $1 billion payment, has contingency

A worker is seen at the construction site of the Panama Canal Expansion project on the outskirts of Colon City January 7, 2014. REUTERS/Carlos Jasso

PANAMA CITY (Reuters) - The Panama Canal Authority on Wednesday rejected as "impossible" a proposal by Italian builder Salini Impregilo that would make the authority pay an additional $1 billion (607 million pounds) to keep work on an expansion project going, and said it has a contingency plan ready.

Jorge Quijano, the canal's administrator, said the authority's plan envisaged bringing in a third party to finish the expansion project if no deal is reached with the Spanish-led consortium carrying out the work.