Panama to start planning of major rail project this year

Planning for the US$4-5bn Panama City-David-Frontera rail line will start this year and contracting in 2025.

Construction is expected to take six years.

La Gaceta reported that studies for the initial project, conducted in 2019, put capex at US$4.1bn, but the line was also expected to end in David city, capital of Chiriquí province, and not extend to the border with Costa Rica.

The line is one of President José Raúl Mulino's flagship projects.

The feasibility studies were carried out by China Railway Design Corporation (CRDC) during the administration of Juan Carlos Varela (2014-19), but progress stopped because Varela's successor, Laurentino Cortizo, had other priorities, La Estrella de Panamá reported.

During his presidential campaign, Mulino promised to revive and extend the project. 

“We are not crafting a different route. We are updating the route that the Chinese government provided,” Mulino told a recent press conference. “We are mapping the route to identify residents because we must negotiate property purchases and, on the other hand, we are looking at [financing from] banks.” 

As president-elect, Mulino determined that former rail minister Henry Faarup Mauad will lead the project. Engineer Roberto Roy, who oversaw construction of Panama City's metro lines No. 1 and No. 2, will provide consulting services. 

The train will reach speeds of up to 160km/h and travel time will be two and a half hours. It will have capacity to transport 750 passengers per trip and connect the provinces of Panamá, Coclé, Herrera, Veraguas and Chiriquí, La Estrella de Panamá reported Faarup as saying in June. 

Earlier this month, the national assembly declared the project of public interest and authorized the economy and finance ministry to assign funds for pre-construction studies, Panamá América reported. With this declaration, the project also became part of Mulino's five-year public investment plan.

And members of French industrial association MEDEF expressed interest in the project following the declaration, Telemetro reported. 

In May, China's ambassador to Panama, Xu Xueyuan, told reporters that CRDC invested heavily in the pre-feasibility studies and that Chinese companies are hoping to participate in the procurement processes.

Launch dates for the tenders have not yet been announced.