Japan has reached a “landmark” agreement to fund the construction of a new monorail system in Panama.

The Panama Government says the system will be the first of its kind in the Americas to use Japanese technology and will be its largest project since the expansion of the Panama Canal.

The loan agreement, which has been valued at US $2.6 billion, also includes a non-refundable technical cooperation contribution of up to $350,000 to appoint a project manager to carry out the preliminary design and support Panama Metro to tender for the main civils works.

Work is expected to commence on the 26.75-kilometre system next year, with the first phase of Line 3 expected to open by the end of 2021.

Funding will come from the Japan International Cooperation Agency (JICA). The 20-year loan agreement includes six years grace and three years disbursement.

More details about the agreement can be found here.

 

 

 

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