On Trip to Panama, Keiko Honda Rides the MIGA-Backed Metro
Central America’s first metro celebrated its one-year anniversary on April 5th and expectations have been very high. MIGA Executive Vice President and CEO Keiko Honda visited the metro and learned that the metro’s Line 1—backed by the agency— has transported 43 million passengers in just eight months from June 2014 to February 2015. The line now transports some 200,000 people daily and their average travel time for a one-way trip is 23 minutes—fully in line with the expectations of the metro’s planners. How much does this ride cost? The answer is USD 0.35 – a low fare balanced by higher than expected ridership.
During her visit Honda received on-site updates on how the metro project has already delivered on its promises and has contributed to enhancing the lives of residents and commuters in the city. Given the current state of transportation and mobility in Panama City's urban center, the metro project has already had wide-ranging positive effects. Benefits include eased traffic congestion (decreasing vehicle operating costs and greenhouse gas emissions), reduced travel times, and increased accessibility from the city’s outskirts—enabling more access to job opportunities.
MIGA has supported Metro Line 1 since July 2012 when it announced backing for the government of Panama's efforts to construct a modern and integrated mass-transit system as a solution to Panama City's urban transportation issues. At that time MIGA supported the financing plan for the ambitious new infrastructure investment with a guarantee of $320 million to cover a loan arranged by Citi Transaction Services and Citigroup Global Markets, Inc. This project was MIGA's first use of its credit enhancement product in Latin America and the Caribbean.
MIGA has been very pleased to support this and other mass-transit projects around the world that support economic dynamism and mobility in an environmentally friendly and sustainable way. Insuring large and complex infrastructure projects is a key priority for MIGA and a strong demonstration of how the agency can support the strategic development objectives of its member countries.
Honda’s recent visit to Panama continued to underscore the agency’s support to the project and to the country more broadly. She met with government officials and private investors, including banks, to showcase how MIGA’s investment insurance and credit enhancement can further help the country.
“Panama has seen exceptional growth in recent years and we’re pleased to support inbound investment that has sustainable impact, like the metro, as well as Panamanian companies looking at opportunities abroad,” she noted.
Since the agency’s inception, MIGA has provided $643 million in guarantees to support investments into Panama in the transportation and banking sectors. The agency has insured outbound investment in the transportation, power, agribusiness, and manufacturing sectors.
