{"id":27640,"date":"2019-12-23T12:23:56","date_gmt":"2019-12-23T17:23:56","guid":{"rendered":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=27640"},"modified":"2019-12-23T12:23:56","modified_gmt":"2019-12-23T17:23:56","slug":"five-panama-infrastructure-projects-keep-eye-2020","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/five-panama-infrastructure-projects-keep-eye-2020\/","title":{"rendered":"Five Panama infrastructure projects to keep an eye on in 2020"},"content":{"rendered":"

\"\"<\/a><\/p>\n

Bnamericas put out a great article of the future projects in Panama.<\/p>\n

\n

Panama could see works begin on some major infrastructure projects next year, in addition to progress continuing on other important developments that are already underway.<\/p>\n

Some of these projects may get a boost from a plan for private sector investment in Latin America, as Panama has been proposed as one of the first nations in the region to benefit from the US-backed Growth in the Americas (Am\u00e9rica Crece) program.<\/p>\n

These five projects, all with estimated investments above US$1bn, involve expanding the nation’s transport network and contribute to the reasons why Panama is one of the fastest-growing economies in the world, according to The World Bank.<\/p>\n

BNamericas takes a look at these key projects.<\/p>\n

Panama City\u2019s Metro expansion<\/strong><\/p>\n

The plan to complete all three lines of the Panama City metro, the first such system in Central America, has not been easy to accomplish since the project was first launched in 2013.<\/p>\n

Panama inaugurated its metro line No. 1 in 2014 and, that same year, the projects for lines No. 2 and No. 3 were estimated at US$5bn. However, a series of obstacles, pushbacks and tender suspensions have delayed construction of metro line No. 3 in 2019. Meanwhile, line No. 2 is already under operation<\/a>, as the BNamericas project database shows.<\/p>\n

Japan showed interest in financing line 3 since the very beginning, but it did not shake hands on the deal until 2016 when the Panamanian government approved a loan agreement of up to US$2.6bn from the Japan International Cooperation Agency<\/a> (JICA).<\/p>\n

As of today, Panama and Japan\u2019s financing agreement stands still.<\/p>\n

Whether construction of line No. 3 of the metro will resume or not is yet to be determined, but the current tender disputes between the government and construction companies will surely keep the topic in the news next year.<\/p>\n

The east-west monorail line will be 26.8km long, connecting Albrook on line No. 1 with Ciudad del Futuro in the Arraij\u00e1n district of Panama Oeste province, west of the canal. The line will have 14 stations and run parallel to the Pan-American highway, crossing the fourth bridge that is to be built over the waterway.<\/p>\n

Panama City-Chiriqu\u00ed train<\/strong><\/p>\n

Unlike the other projects, the Panama City-Chiriqu\u00ed train<\/a> was proposed only two years ago and the government has, so far, moved very quickly to begin construction, although as of now only the feasibility study has been completed.<\/p>\n

A recent scandal concerning the project arose after whistleblower site Varelaleaks exposed a chat between Panamanian officials that suggests the administration of then-president Juan Carlos Valera took a US$143mn bribe from China to end political ties with Taiwan.<\/p>\n

The Chinese government is taking part in planning and financing the US$4.1bn project, which will run for 391km on a line connecting Panama City and the capital of Chiriqu\u00ed province in the west of the country.<\/p>\n

The Chinese embassy in Panama has denied all accusations.<\/p>\n

Panama Canal fourth bridge<\/strong><\/p>\n

Construction works on the fourth bridge over the Panama Canal<\/a> kicked off in May<\/a>, according to the BNamericas project database. The US$1.5bn project is expected to be delivered by November 2023.<\/p>\n

However, recent allegations of irregularities<\/a> in the tender process suggest the initial investment could have to be increased, which may hurt public financing.<\/p>\n

Consortium Panam\u00e1 Cuarto Puente, comprised of China Communications Construction Company and China Harbour Engineering Company, was awarded the contract to design and build the bridge in July 2018 during Varela’s presidency.<\/p>\n

Corozal transshipment port<\/strong><\/p>\n

Another project that remains at an early stage is Corozal port on the banks of the Panama Canal.<\/p>\n

Ever since it was proposed, the project has been criticized buy the public and lawmakers due to alleged corruption. But the project moved forward in 2016 after the Panama Canal Authority (ACP) announced the approval of the tender specifications document for its construction and operation.<\/p>\n

Late in 2018, officials said they were still committed to reviving the project<\/a>, which involves building a container terminal under a concession, adding that the project was being redefined, with new tender package plans currently in the works.<\/p>\n

As of today, BNamericas has been unable to obtain any more information on advances on this project, if there are any.<\/p>\n

Panam\u00e1 Colon container port<\/strong><\/p>\n

The Panam\u00e1 Colon container port<\/a> on Isla Margarita, off the Caribbean coast, was originally scheduled to be completed in 2020 with an investment of US$1.0bn, which was later raised to US$1.1bn.<\/p>\n

China’s Shanghai Gorgeous and its business partner Landbridge Group, one of the Asian nation’s largest port operators, are in charge of developing the project.<\/p>\n

The terminal is set to have a capacity of 2.5mn TEUs and will be able to receive Neopanamax vessels.<\/p>\n

The dredging and construction works are the responsibility of China Communications Construction Company (CCCC). The terminal’s foundation stone was laid last June and the project was expected to be completed within three years.<\/p>\n

The first phase entails a 1.5km pier and a container yard.<\/p>\n

US INVESTMENT<\/strong><\/p>\n

Some of these unfinished or unstarted infrastructure projects could soon receive an investment boost from private investors in the US to speed up their construction.<\/p>\n

The Central American country has been proposed as one of the first 30 countries in Latin America to benefit from the US-backed Growth in the Americas (Am\u00e9rica Crece) program.<\/p>\n

The initiative, officially launched on Tuesday, seeks to allocate estimated investments of US$1tn from US private investors<\/a> to a portfolio of energy and infrastructure projects in countries in the Carribean, Central America and South America \u2013 except for Venezuela, Cuba and Nicaragua \u2013 according to the US Department of State.<\/p>\n

During a conference call with reporters last week, Mauricio Claver-Carone, deputy assistant to the president and senior director for Western Hemisphere affairs, said Panama will be the first to sign an agreement for infrastructure financing, as it was the first in the region to sign an energy agreement with the US.<\/p>\n

So far, US officials have already signed investment agreements for the energy sector with Chile, Argentina, Jamaica and Colombia, and they will soon conclude agreements of the same type with Peru, Brazil and El Salvador.<\/p>\n

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    Bnamericas put out a great article of the future projects in Panama. Panama could see works begin on<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[242,12,241,39,248,34,33,62,42,219,11,249,243,7,255,246,244,44],"class_list":["post-27640","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective","tag-boca-chica-real-estate","tag-boquete","tag-boquete-real-estate","tag-buenaventura","tag-casco","tag-casco-antiguo","tag-casco-viejo","tag-coffee-in-panama","tag-estate-homes-in-panama","tag-move-to-panama","tag-offshore-real-estate","tag-panama-offshore-real-estate","tag-panama-papers","tag-panama-real-estate","tag-panama-real-estate-bocas-del-toro","tag-relocate-to-panama","tag-rum-in-panama","tag-travel-to-panama"],"yoast_head":"\nFive Panama infrastructure projects to keep an eye on in 2020 - Blog and Newsletter<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/five-panama-infrastructure-projects-keep-eye-2020\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Five Panama infrastructure projects to keep an eye on in 2020\" \/>\n<meta property=\"og:description\" content=\"Bnamericas put out a great article of the future projects in Panama. 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