Japan to build $2 billion monorail across Panama Canal
February 2016 Newsletter – Source: Bloomberg
Japan and Panama will sign a memorandum of understanding on Thursday to use Japanese technology for an estimated $2 billion monorail that would span the Central American nation’s trans-oceanic canal and ease traffic congestion.
The pact includes financing via the government-backed Japan Bank for International Cooperation, though lending terms haven’t yet been set, Luis Miguel Hincapie, Panama’s vice minister of foreign affairs, said on Thursday in an interview in Tokyo.
The project, which could start as early as this year and be completed by 2022, would be the largest Japan-sourced infrastructure investment in Panama’s history.
The 27-kilometer project, Central America’s first monorail, can help expand business ties with Japan, part of a broader goal to draw more investment to Panama, Hincapie said.
Central America’s first monorail project attracts Hitachi and Mitsubishi interest
Japanese industrial group Hitachi is “highly interested” in the project and participated in a feasibility study, said spokesman Kazuki Fujiwara.