Cost of Metro subway up to $1.8 billion and climbing.
The acknowledged costs of Panama’s first Metro line continues to balloon at a time when the government plans to ask the National Assembly to approve an increase in the deficit following last year’s floods.
The subway is now estimated to cost the state approximately $1.8 billion an increase of $ 348 million on the previous known price.
Robert Roy, executive secretary of the Metro, and Frank De Lima, Deputy Economy Minister confirmed that the project cost will climb for multiple reasons: including an extension of the line,, the removal of public utilities,compensation, expropriation, and project management.
These items are not included in the contract between the state and the consortium LineOne, formed by Odebrecht, FCC and Alstom, which remains at $ 1.452 millionbut they do appear in the Government's plans.
When on March 15 the Andean Development Corporation announced the approval of a loan for $400 million for the construction of Metro, it said in a press release that the total estimated cost was $ 1.805 million.
The new figure does not include the construction of the yards and workshops of the Metro- a contract waiting to be put out to tender, or the possible increases because of the rising price of oil.
