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Summary of proposed guarantee

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
Project ID
Fiscal year
Guarantee holder
Citibank, N.A.
Investor country
United States
Host country
Environmental category
Date SPG disclosed
July 19, 2011
Project Board date
September 27, 2011
Gross exposure
 $657.0 million
Project type
Strategic priority area
Complex Infrastructure
Original ESRS for Panama City Metro
Revised ESRS for Panama City Metro

This summary covers a loan of $450 million by Citibank, N.A. of the United States for the construction of the Line 1 Metro project in Panama City. The investor has applied for a MIGA guarantee against the risk of non-honoring of sovereign financial obligations for a period of up to 15 years. The proposed guarantee of $657 million would include cover for future interest and other financing-related costs.

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).

Environmental Categorization

The project is a Category A under MIGA’s Policy on Social and Environmental Sustainability. The key social and environmental issues are land acquisition, economic and physical displacement of around 130 businesses (the majority of which are microenterprises), community and workers’ health and safety, erosion, water and air pollution, flooding, noise, and spill management (particularly during the construction phase). Environmental programs and specific measures have been developed to address the identified negative impacts.

Click here to view the Environmental and Social Review Summary.

Development Impact

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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