CAF is main external financing source for Panama Metro

(Panamá, Oct. 30, 2012).- The President of CAF –development bank of Latin America– Enrique García, announced the approval of additional $100 million in funding for the construction of the Panama Metro during a visit to the construction site with Roberto Roy, Panamanian Minister for Canal Affairs and Secretary for the Metro. With this approval, CAF's participation in the project rises to $500 million, 27% of the total cost, thus becoming the main source of external financing of the Panama Metro.

During the tour of the Fernández de Córdoba metro station, currently under construction, Mr. Roy thanked CAF for its faith in this major project that will transform the City of Panama, and highlighted the progress made, “with 54% of the project completed.” The metro is expected to be operational “during the first quarter of 2014,” Mr. Roy said

For his part, Mr. García stressed CAF’s commitment to this kind of initiative. “High-tech projects require large investments,” he said. “This funding demonstrates the confidence of financial institutions in the Panama Metro, a project that will have a high socioeconomic impact and improve the living conditions and mobility in the City of Panama.”

Currently CAF is financing the construction of three subways in cities that will have this type of transportation system for the first time: Lima, Panama and Quito. In addition to funding these projects, CAF has provided technical advice on key issues.

During Mr. García’s visit, CAF announced its commitment to the development of future stages of the Panama Metro, including Line II, which is already a priority for the government. "We can offer financial advice for structuring the project, based on our international experience and the possible assessment of public-private investment schemes,” Mr. García said.