United Kingdom Interested in Financing the Panama-David-Frontera Train

The general secretary of the Panama-David Railway, Henry Faarup, declared on the morning of Tuesday, July 22, that the United Kingdom is one of the countries that have shown the greatest interest in financing the construction of the project. Faarup detailed that the United Kingdom has offered 5 billion pounds in loans, of which around 3.5 billion pounds could be used for the construction of the Panama-David railway.  He also stated that he will travel to the United Kingdom in September and that he plans to close a loan to begin the first phase.  But at this point in the interview, he clarified that the European Investment Bank would also be interested in financing the project.

“All of Europe is interested in supporting us,” he insisted.  When asked on Radio Panama whether there would be limitations for any country, such as China, to participate in the project bidding, he indicated that there are laws in the country and they must be respected. “We’ll see when the time comes,” the secretary general emphasized.  The official explained that the plan is to begin civil works for the project in the first three months of 2026.  For the beginning of this stage, the route will begin between Panama Pacifico and Divisa.  However, the first route in that section would be the one that runs from Sajalice to Divisa, as it is one of the simplest.  Faarup explained that the route in the Campana area would involve some difficulties due to the terrain conditions, such as the hills. 

The first stage of the railway, which could be completed in seven years, will extend a total of 193 kilometers, of the 475 kilometers of the total project.  Faarup indicated that he requested an interview with the United States ambassador to Panama, Kevin Marino Cabrera, who visited the Ministry of Railways on July 21 and was given details of the different stages of the project.  According to the official, he spoke with Cabrera about the financing of the project and issues related to cooperation.  Regarding the person in charge of managing the railway, Faarup stated that a role could be created as a ghost operator, who would be in charge of its operation for five years to train the Panamanians, who would then take control.

The Panama-David-Frontera train is a planned high-speed railway project that will connect Panama City with the border town of Paso Canoas (Frontera), near Costa Rica, through David, the capital of Chiriquí province. This project aims to significantly reduce travel time between Panama City and David from the current 7+ hours by car to about 2.5 hours by train. The train will also carry freight, boosting Panama’s role as a logistics hub. 

Here’s a more detailed breakdown: 

• Route:

The railway will span approximately 475 kilometers, with 14 planned stations, including key locations like Albrook, Panama Pacifico, Santiago, and David.

• Speed:

Passenger trains are expected to reach speeds of up to 180 km/h, while freight trains will travel at up to 100 km/h.

• Impact:

The project is expected to transform travel, trade, and tourism in Panama and Costa Rica’s southern region.

• Timeline:

Construction on the Panama Pacifico-Divisa stretch is scheduled to begin in January 2026.

• Cost:

The overall project is estimated to cost between $4.1 and $5 billion.

• Feasibility Studies:

U.S. firm AECOM is conducting technical studies, with results expected by September 2025.

• Interconnectivity:

The train stations will be designed to connect with bus routes, airports, and ports, streamlining logistics.