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Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.


Project name
Panama Metro Line One
Project ID
Fiscal year
Guarantee holder
Citibank, N.A.
Mizuho Corporate Bank Ltd.
Bank of Tokyo Mitsubishi UFJ Ltd.
Investor country
United States
Host country
Environmental category
Date SPG disclosed
July 19, 2011
Project Board date
May 03, 2012
Gross exposure
 $320.0 million
Project type
Strategic priority area
Complex Project
Revised ESRS for Panama City Metro
Original ESRS for Panama City Metro

View Summary of Proposed Guarantee

On June 30, 2012, MIGA issued a guarantee of $320 million to Citibank, N.A. of the United States, Bank of Tokyo Mitsubishi UFJ Ltd of Japan, and Mizuho Corporate Bank Ltd of Japan. The guarantee covers a $250 million loan as well as interest and other financing costs associated with the construction of the Line 1 Metro project in Panama City. The coverage is for a period of up to 12 years against the risk of non-honoring of sovereign financial obligations.

The project consists of the greenfield construction (including the acquisition of rolling stock and the construction of depot and maintenance facilities) and operation of a 13.7 km Line-1 Metro between the northern Los Andes and south-west Albrook areas of Panama City.

The total cost of the Line 1 Metro is estimated at $1.9 billion, of which $1.5 billion is related to the turnkey EPC contract entered into by the government of Panama with the "Line One Consortium."  The Line One Consortium comprises Construtora Norberto Odebrecht S.A. of Brazil (55 percent), and Fomento de Construcciones y Contratas S.A. (FCC) of Spain (45 percent).

The main development impacts that will accrue from the project are reduced rush hour travel time between the residential and central city areas of Panama City, primarily through reduced congestion and increased access to public transportation. The project is also expected to improve road safety and reduce vehicle operating costs for non-metro users.

The project is aligned with MIGA’s commitment to supporting more investments in complex deals in infrastructure.

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