US$ 52.9 million approved for mass transit system in Panama

To contribute to the mass transport system of Panama City, the Andean Development Corporation (CAF) approved a US$52.9-million loan for the Republic of Panama.

CAF President & CEO Enrique García explained that the approval was part of the Corporation’s efforts to improve the quality of life of the Latin American population. "The growth of population and its concentration in urban areas, since the 1950s, has progressed at a rate unprecedented in the rest of the world. The metropolitan area of Panama City is part of this reality, and has been affected more intensely because of the absence of a rapid, comfortable, safe and efficient mass transport system. The system has to be modernized and made more efficient with a view to increasing and improving the units, service and quality, as well as raising the quality of life of the users."

García added that the total cost of the project was US$85.9 million, with 62% to be financed by CAF and the remaining US$33 million from local contributions. The aim is to reduce vehicle congestion and offer rapid mobility for users, cutting down accidents and harmful emissions, and ensuring equal access for all the population.

The project has three main components: a) studies, civil works and supervision of the works of the mass transit project for Panama City; b) civil works for minor improvements at 22 intersections in the capital; and c) Pilot Plan to control Vehicle Gas Emissions under the Latin American Carbon Program (PLAC) managed by CAF.

In the multilateral financial organization’s relations with the Republic of Panama this loan joins another approved in December 2005 for US$80 million to partially finance the Highway Rehabilitation and Upgrading Program, with a total investment of US$125 million. This project consists of widening the Arraiján-Chorrera highway to four lanes, together with Rehabilitation of the Trans-Isthmus highway between the cities of Panama and Colon. The objectives of the approved project include reduction of vehicle operating costs and user time, and improving economic and commercial activities in the free port area between Panama and Colon.

The other loan approved, now in stage of concluding the disbursement process, was for US$60 million destined to partially finance the Road Infrastructure Investment Program in the Inter-Oceanic Corridor.