The Panama Canal Authority has recently announced that it has awarded a $268 million excavation agreement to a consortium including Mexico’s ICA, Spain’s FCC and Costa Rica’s Meco.

While releasing a statement, the authority said that the companies will help dig a channel linking Panama’s new Pacific locks with the narrowest part of the canal.

In a process to make way for bigger ships, Panama has decided to invest $5.25 billion during the first major expansion of the canal since it was opened in 1914.

A grouping headed by Spain’s Sacyr Vallehermoso and Italy’s Impregilo were the low bidders for the main contract in the growth program in July.

The expansion of the canal, that presently handles 5 percent of global trade, is said to be finished in 2014.