IDB Invest, the private sector arm of the Inter-American Development Bank Group, is leading a US$336 million financing package to support the construction of the underground section of Line 3 of the Panama Metro. 

The financing is structured as an A/B facility for the purchase of certificates of no objection ( CNO ), with an A tranche of US$114 million contributed by IDB Invest, and a B tranche of US$222 million mobilized through commercial banks. The operation is complemented by two facilities backed by Korea’s export credit agencies ( K‑SURE and KEXIM ), bringing the total financing to US$1.33 billion.

The 4.4 kilometre undergound segment will connect Albrook with the Panama Pacífico station, aimed at offering a fast and reliable public transportation alternative for more than 500,000 residents of West Panama.

Construction is being led by a consortium spearheaded by Hyundai E&C. The line will stretch 25 kilometres, with 14 stations. The signalling system and trains are being provided by a consortium led by Hitachi.

The project reflects IDB Invest’s “Originate to Share” business model, which leverages its structuring expertise to attract additional private capital and expand the development impact of financing in Latin America and the Caribbean.

Washington based IDB Invest, a member of the IDB Group, is a regional multilateral development bank.

The overall coordinator of the financing of the entire Line 3 project is Citibank. The project is also supported by an ODA loan from Japan International Cooperation Agency ( Jica ).