Assembly Commission Approves $11.1 Million for Studies of the Panama-David-Frontera Train

The loan was approved in accordance with the general rules of budget administration.

The Budget Committee of the National Assembly (AN) approved a transfer of $11,160,000 in favor of the Ministry of the Presidency, to develop various studies for the Panama-David-Frontera Railway project.  Government Minister Juan Carlos Orillac explained that the transfer is intended to address several studies, including: the bidding process for the “project manager” for the entire route, the development of the Environmental Impact Study and three engineering feasibility studies, and the hiring of qualified personnel to carry out the work.

He also stated that the project aims to strengthen the national and regional economy by facilitating commercial and tourist mobility, as well as the general public’s travel, improving the country’s transportation infrastructure and access to international markets.  The loan was approved under the general budget administration regulations established by the General State Budget for the 2025 fiscal year, considering that the project was not allocated any investment or operating funds. 

Recently, President José Raúl Mulino announced that construction of the Panama-David-Frontera train will begin in January 2026, and that it will generate approximately 50,000 direct and indirect jobs during its construction phase. Regarding the railway route layout, the megaproject will include at least 14 future stations and they keep adding more and extending the rail into Costa Rica. The train project, which includes 475 kilometers of track, can be completed in approximately hours, with a maximum design speed of 180 kilometers per hour (km/h) for passenger trains and 100 km/h for freight trains, aligned with international standards for modern and multimodal rail transport.