Panama Makes Multi-Billion Dollar Investment in Panama City Metro Expansion
Making good on its promise to quickly move ahead with the second phase of the Panama City metro, the government last week awarded a $2.2 billion construction contract for the construction work to a partnership of Brazilian and Spanish companies.
Construction of the 21 kilometer segment should begin within two months and will likely take 46 months to complete. The line will extend east from the Line 1 station at San Miguelito and connect to San Antonio, Hospital del Este and Nuevo Tocumen, including 16 stations.
The winning team of Spain’s FCC of Spain and Brazil’s Odebrecht worked on development of the first phase the 16 kilometer segment that opened last year to international attention. The contract covers design engineering services, construction of civil works and stations along the route, according to news reports.
The Metro is the first of its kind in Central America and is a big step in addressing traffic problems and confirming Panama City as a thriving modern city.
While many locals will decry a new round of traffic snarls due to construction, in the long term completion of the Metro system is a big step for Panama City. It was not enough to build the first phase and gather headlines. The entire network must be in place for the Metro to impact the city’s transportation issues.
The government estimates the second phase will initially handle 16,000 passengers per hour per direction. A fleet of 21 five-car trains will work the lines and operate a three-minute gaps during peak usage periods.
Clearly the government is serious about moving forward. Bidding for the third phase, which is expected to cost $3 billion, may happen within months, the news reports suggest. That extension will cover 25 kilometers and cross the Panama Canal.
Update: On May 21 Panama’s contracting department temporarily suspended the process after one bidder complained. It’s unclear how this will affect the process. Stay tuned!
Duncan McGowan is president of Punta Pacifica Realty, a Panama real estate agency focused on Punta Pacifica, the exclusive neighborhood of 18 towers perched on the edge of the Pacific Ocean.
