Govt signs US$513mn CAF loans

Monday, June 13, 2011

Panama's government has signed three loans totaling US$513mn from Latin American development bank CAF which will be used to build Panama City's metro system line 1, finance state-run water utility Idaan's investment plan, and improve emergency response during natural disasters.

Of the total, some US$400mn will be used to partially finance construction of the metro line, according to a presidential release.

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The metro authority signed a US$1.45bn contract in November last year with a consortium comprised of Spain's FCC and Brazil's Odebrecht to build and operate the 14km line.

Another US$100mn will go towards expanding Idaan's potable water and sanitation coverage and improving services in Panamá province.

Finally, US$13mn will be used to improve the country's emergency response to natural disasters, the release said.