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Overview

Chinese Government provides RMB 99 million grant for Panama City to David Railway Feasibility Study

Commitments (Constant USD, 2023)$15,062,829
Commitment Year2018Country of ActivityPanamaDirect Recipient Country of IncorporationPanamaSectorTransport And StorageFlow TypeGrant

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 1, 2018
End (actual)
Mar 15, 2019

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

Government Agencies

  • Unspecified Chinese Government Institution

Receiving agencies

Government Agencies

  • Government of Panama

Implementing agencies

State-owned companies

  • China Railway Group Limited (CREC)

Loan desecription

Chinese Government provides RMB 99 million grant for Panama City to David Railway Feasibility Study

Narrative

Full Description

Project narrative

In December 2017, the Chinese Government signed a memorandum of understanding (MOU) with the Government of Panama regarding a feasibility study for a railway line connecting Panama City with the town of David, the capital of Chiriqui province. The Chinese Government reportedly committed RMB 99 million of grant funding for the study. China Railway Design Corporation (CDRC) was the contractor responsible for the feasibility study. It conducted the study in coordination and collaboration with the Panamanian Society of Engineers and Architects (SPIA), the Technological University of Panama, the University of Panama, the Ministry of Housing and Territorial Planning, the Electric Transmission Company and the Panama Metro. The proposed railway would involve the construction of an 8-car passenger and freight train line with 21 stops along a 391.3 km stretch. If completed, it would turn a 6+ hour journey into approximately 2 and a half hours. As of September 2018, the feasibility study was reportedly 80% complete. The results of the study were delivered to the President of Panama on March 15, 2019. It is unclear if the feasibility study will result in a project but time and cost estimates hover around $4.1-5.5 billion and a 6-year completion timeline

Staff comments

1. The Spanish project title is Estudio de Factibilidad del Proyecto Ferroviario Panamá-David. 2. The town of David is 50 km from the border with Costa Rica. 3. The MOU can be accessed in its entirety via https://mire.gob.pa/images/PDF/documentos%20y%20formularios/Acuerdoschina/ACUERDO%20DE%20COOP.%20ESTUDIOS%20DE%20FACTIBILIDAD.pdf