With the approval of a $137 million bank loan Panama Metro will be able to complete the process of buying 70 new cars for Line 1.
From a statement issued by the Presidency of Panama:
The Cabinet Council has authorized the finalisation of a loan agreement between the Republic of Panama, represented by the Ministry of Economy and Finance and ING BANK, A BRANCH OF ING-DIBA AG and Citibank, NA for 137 million 339 thousand dollars for the acquisition of 70 new train cars to be used for transport in the Panama Metro.
The new business entity seeks to convene 100 companies in two years, and foster business development, trade and investment between Panama and the European country.
The Franco - Panamanian Chamber of Commerce (CCFP) is a non profit organization that seeks to bring together the business sector of both countries to promote business development, trade and investment.
The consortium led by France's Alstom won the contract to supply the integrated system including 21 trains, substations and command systems for the trains.
Alstom, the leader of the consortium that won the tender, has been commissioned to provide the trains and launch Line 1. The contract for Line 2 of Metro de Panama states that the consortium will provide all trains, stations and operate the line.
After the transfer of the controlling interest to the State, the company will review existing contracts with rail customers.
Prensalibre.com reports: "The lease to Compañía Bananera Guatemalteca, the pipeline easement for fuel transport with Texaco, the route for LPG transport with Zeta Gas, signed in 2002, and the easement for electric power transfer with Generadora Eléctrica del Norte and a similar one with Generadora del Sur, signed in 2001, are the contracts that the state will recover when it gains the rights for the railroad. "
The removal from the OECD’s gray list and the signing of a tax information treaty with France has led French companies, such as Alstom, to renew their interest in Panama.
While Panama was included in the "gray list", French companies had to pay a 50% rate for income tax, rather than the traditional 30%. Now that Panama is no longer considered a "tax haven", the regular rate is to be used, and in addition, taxes paid in Panama can be recognized in France and therefore tax burdens are reduced.
Valued at $ 270 million the Alstom group will manufacture in its plant in Barcelona the 57 wagons of the first Metro line.
The company is a subcontractor of consortium FCC and Odebrecht, who will build the first subway line.
"Trains are based on the 'metropolis' platform of Alstom and will be very similar to those provided for the metro line 9 in Barcelona," reports the article in Europapress.es.
The urban electric train, a $345 million project, would be awarded in 2010.
A draft bid tender was presented by the National Concessions Council. 11 companies have shown interest in constructing and operating the train for 35 years.
"From the eleven candidates, six stand out for their previous experience developing train systems: CAF (Spain), Alston (France), Inekon Group (Czech Republic), Bombardier (Canada), Siemens (Germany) and Daebon Engineering - Hyundai Rotem (South Korea)", reports Nacion.com.
There are six companies interested in the 35-year concession of the Metropolitan Electric Train (TREM).
The project would involve the construction and operation of an electric train. The first section would be between San Jose and Heredia. The total investment is $345 million of which the state will provide $100 million and the remainder would be the responsibility of the concessionaire which will have 35 years to recover the investment.