Panama Metro Line 3 Project Secures Usd 1 Billion Funding

The Japan International Cooperation Agency (JICA) and the Government of Panama signed a loan agreement for the development of Panama metro Line 3 in the western side of the city.

JPY 159.5 billion (USD 1 billion) is the total amount of the ODA loan with a repayment period of 20 years and a 6-year grace period.

The Minister of Economy and Finance, Felipe Chapman, and the JICA Resident Representative in Panama, Shohei Tada, formalised the agreement in a ceremony held in the Panama West Province.

USD 2.5 billion is the entire value of the project covering the construction of a 24.5 km line with 14 stations connecting Panama City with the western province of Arraijan, crossing the Panama Canal. The project is implemented into three phases and includes a line as a mix of elevated and tunnel sections.

The line will connect Albrook station on Line 1 to Ciudad del Futuro in the Arraiján district of Panamá Oeste province, including a 6 km underground section beneath the Panama Canal at depths reaching up to 64 metres.

The elevated section begins at the Panama Pacifico station and runs 18.5 km from the Arraiján district to Ciudad del Futuro, in its first phase, and is 75% complete.

All stations on Line 3 are under construction, with progress from 58% to 85%. In addition, more than 95% of the viaduct’s beams have been erected, with a maximum height of 31.6 metres. Additionally, on the elevated section between Patios y Talleres and Vista Alegre Station, you can see the orange auxiliary vehicle used to install electromechanical equipment on the running beams.

In 2016, the governments of Panama and Japan signed a USD 2.6 billion financing agreement for the construction of this new metro line and in 2023 JICA and the City of Panama signed a USD 697 million funding agreement for the second phase of the project.

In October 2020, the HPH consortium comprising Hyundai Engineering & Construction, Posco, and Hyundai Engineering, was selected as the main contractor for the project. USD 2.8 billion is the value of the contract to build the line, which is Panama’s largest-ever infrastructure project since Panama Canal.

The consortium selected Hitachi and Mitsubishi as the subcontractors of the project to manufacture, deliver and commissioning of rolling stock and systems including power systems, signalling and telecommunications. USD 883 million is the value of the contract.

The line will be operated by 26 six-car trainsets manufactured by Hitachi and Mitsubishi.

The project, implemented by Metro de Panamá should be completed in December 2028 when the line will enter commercial operation reducing journey time from 90 minutes to 45 minutes. The line will transport 20,000 passengers per hour per direction with trains running every four minutes.

In March 2025, Metro de Panamá announced that the construction of Line 3 tunnel, which will ensure the connection between West Panama and the city centre is 15% complete. The tunnel has a length of 4.5 km and a diameter of 13.5 metres for which excavation is progressing at a rate of more than 8 metres per day.

“During this stage, the Panama tunnel boring machine has faced geomechanical challenges due to the terrain. The performance of the TBM varies depending on the specific conditions of the terrain being excavated,” Metro de Panamá says.

Utilising high-quality Japanese technology, this will be the first monorail project in Central America. As monorails have a proven track record of operating as a safe and reliable urban transit system, the construction of the Line-3 monorail is expected to improve transport in the metropolitan area, while also reducing greenhouse gas emissions.

The objective of Panama metro Line 3 is to contribute to the improvement of urban mobility and the reduction of emission of greenhouse gases, while improving the e quality of life for 500,000 residents of the province of Panamá Oeste, serving an initial demand of 160,000 users.

The line is anticipated to open by the end of 2026, transforming urban mobility in Panama City and its surrounding regions.