The financing agreement signed between the governments of Panama and Japan includes a non-refundable $35 million for recruitment of the Project Management company.
Wednesday, April 20, 2016
From a statement issued by the Presidency of Panama:
Panama today finalized a landmark agreement with Japan for financing of up to B /. 2,600 million to be used for the construction of Line 3 of Metro de Panama, the country's largest public infrastructure project since the Canal Expansion.
The monorail system will be the first with Japanese technology to be built on the American continent.
The agreement also includes a technical cooperation grant for hiring a Project Management company (Project Manager) for B / .35 million.
"The funding given to us today by Japan is a recognition of the strength and credibility of Panama," said the president of the Republic, Juan Carlos Varela in a joint press appearance with Japanese Prime Minister Shinzo Abe. "Our economy stands on solid foundations and today we are demonstrating that," he added.
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The government has endorsed the first loan from the Japanese cooperation of $262 million to finance technical and financial studies for Line 3 of the Panama Metro.
From a statement issued by the Foreign Ministry of Panama:
The Cabinet Council authorized on Tuesday the signing of a loan agreement between Panama and the Japanese International Cooperation Agency (JICA) in the amount of up to 29,575 million Japanese yen ($262.102.448.23) for the "Project Line 3 Urban transport for the Metropolitan area of Panama ".
The launch of a tender for its construction is still scheduled for early 2017 and the line will run parallel to the fourth bridge over the Panama Canal.
From a statement issued by the Foreign Ministry of Panama:
The presidents of Panama, Juan Carlos Varela, and Japan, Shinzo Abe, will preside this April 18th in Tokyo, over the signing of the financing and project management of the construction of Line 3 of the Metro de Panama going towards the province of Panama Oeste, a work which is expected to be started at the beginning of 2017 and to be completed in 2022.
In exchange for "soft" financing conditions, the Japanese company would be in charge of the electromechanical works of Metro Line 3.
Although negotiations between the two governments have not yet been finalised, the participation of a Japanese company in the execution of electromechanical works of the project is the condition for China to grant funding for the entire project.
A loan from the Japanese government for the construction of the third line of the Metro will have a term of 25 years, a seven-year grace period and an interest rate of 2.5%.
As was announced in July 2013, the Government of Japan will provide the resources for the construction of the third line of the Metro, whose final route will be up to Ciudad del Futuro in Arraiján.
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