Panama-David Train Project: Authorized Multi-Million Dollar Contract for Technical Advice

The SNDF has requested the inclusion of engineering development at 20% for the additional sections between Albrook Station and El Espino.

The Cabinet Council approved the resolution authorizing the contracting through an exceptional procedure between the National Railway Secretariat (SNDF) and the renowned, and globally experienced, US company AECOM USA, Inc. (AECOM Panama), for technical and strategic advice for the engineering development of 20% of the Albrook-Sajalices section and consolidation of the studies for the feasibility document of the Panama-David-Border Train project, for the amount of $ 4,170,394.73. 

The SNDF reported that it has made progress in the project’s master plan, as well as in the scope of engineering development to 20% of a section of Phase 1, the contracting of studies for environmental impact assessment, target population studies and market analysis, financial evaluation, and economic and social evaluation.   In addition, the SNDF has requested the inclusion of 20% of the engineering development for the additional sections between Albrook Station and El Espino, as well as the development of 20% of the conceptual design of the fifth bridge over the Panama Canal, critical infrastructure for the connection of the railway corridor.  However, the project now requires a new consultancy that includes:

 
• The production and coordination of the project feasibility studies that will lead to the preparation of the feasibility document, in line with the requirements of the MEF’s Methodological Guide for Project Formulation and Evaluation. 

• The design of the fifth bridge over the Panama Canal and the CAPEX estimate; the technical support and monitoring of the Phase I geotechnical campaign.

• Monitoring the Environmental Impact Study (EIA), and preparing technical requirements for the Phase I section.

• The development of complementary components aimed at developing the business plan; the integration of market supply and demand studies to feed the financial and economic models. 

• Conducting a market study to identify key providers of rail and related services (including real estate and financial development aspects).

• Support in defining and structuring the project.

• The legal and regulatory review related to feasibility. 

• A preliminary analysis and assessment of the transit-oriented development potential in six main areas and an evaluation of the private investment potential through the mechanisms allowed by Panama’s regulatory framework. 

This project, promoted by President José Raúl Mulino, consists of an ambitious initiative to develop a railway line connecting Panama City with David, in the province of Chiriquí, and extending it to the border with the Republic of Costa Rica.  It also aims to improve transport infrastructure in Panama, facilitating the movement of people and cargo between these important regions of the country, and access to international markets.