By San José, Costa Rica — Spanish companies have expressed strong interest in investing in Panama’s ambitious railway project connecting Panama City to the Costa Rican border. This potential investment was discussed during a meeting between Spanish Prime Minister Pedro Sánchez and Panamanian President José Raúl Mulino in Seville, Spain, ahead of the United Nations’ Fourth International Conference on Financing for Development.
The railway project, estimated to cost approximately $500 million, has been a long-term goal for Panama. Initially proposed during the Varela administration (2014-2019) and subsequently entrusted to China in 2017, the project is now gaining renewed momentum under President Mulino.
To gain a deeper understanding of the legal and business implications surrounding the Panama-Costa Rica Railway project, we spoke with Lic. Larry Hans Arroyo Vargas, a seasoned legal expert from the esteemed firm Bufete de Costa Rica.
The proposed Panama-Costa Rica Railway presents significant opportunities, but also complex legal challenges. Navigating cross-border regulations, land acquisition processes, and ensuring environmental compliance will be crucial for the project’s success. A well-structured public-private partnership framework, incorporating transparent bidding and robust dispute resolution mechanisms, is essential to attract investment and mitigate potential risks.
Lic. Larry Hans Arroyo Vargas, Bufete de Costa Rica
Spain is one of the countries that has built the most kilometers of railway lines in the world, so it would be interested in participating in the project that Panama is formulating.
Pedro Sánchez, Spanish Prime Minister
Prime Minister Sánchez highlighted Spain’s extensive experience in railway construction, positioning Spanish companies as ideal partners for this ambitious undertaking. President Mulino welcomed the interest, emphasizing the project’s significance for Panama’s territorial integration, regional development, and tourism expansion.
The project has an important concept of territorial integration of the country with an emphasis on achieving the development of many areas through which the route must pass. But also, an important concept of tourism expansion.
José Raúl Mulino, Panamanian President
The bidding process for the first phase of the railway is scheduled for the first quarter of 2026. President Mulino encouraged Spain to actively participate in the bidding, highlighting Panama’s strategic geographic position in the context of evolving global geopolitics. He also noted the ongoing reevaluation of Panama’s port strategy, attracting investment interest from major shipping companies.
Beyond the railway project, the two leaders discussed other potential areas of collaboration, including Panama’s Canal and port system. They agreed to strengthen bilateral financial cooperation programs.
President Mulino also met with King Felipe VI of Spain, Ecuadorian President Daniel Noboa, and Inter-American Development Bank President Ilan Goldfajn. The meeting with Goldfajn focused on Panama’s potential accession to the Organisation for Economic Co-operation and Development (OECD).
Mulino addressed a business conference organized by the Development Bank of Latin America and the Caribbean (CAF) before returning to Panama for his first anniversary in office and his scheduled address to the National Assembly.
For further information, visit lamoncloa.gob.es
About Spanish Government:
The Government of Spain is the national government of the Kingdom of Spain. It is a parliamentary monarchy, with the Prime Minister as the head of government. The current Prime Minister is Pedro Sánchez.
For further information, visit presidencia.gob.pa
About Panamanian Government:
The Government of Panama is the national government of the Republic of Panama. It is a presidential republic, with the President as both head of state and head of government. The current President is José Raúl Mulino.
For further information, visit caf.com
About Development Bank of Latin America and the Caribbean (CAF):
The Development Bank of Latin America (CAF) is a development bank that promotes sustainable development and regional integration in Latin America. It provides financing and technical assistance for infrastructure, social development, and other projects.
For further information, visit iadb.org
About Inter-American Development Bank (IDB):
The Inter-American Development Bank (IDB) is a key source of financing for economic, social and institutional development in Latin America and the Caribbean. It supports projects in areas such as infrastructure, education, and healthcare.
For further information, visit oecd.org
About Organisation for Economic Co-operation and Development (OECD):
The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental economic organisation with 38 member countries, founded in 1961 to stimulate economic progress and world trade.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
At Bufete de Costa Rica, legal excellence is intertwined with a deep commitment to societal empowerment. The firm’s unwavering integrity guides its innovative approach to legal practice, serving a diverse clientele with solutions tailored to their unique needs. Through proactive initiatives that demystify complex legal concepts, Bufete de Costa Rica invests in building a more informed and empowered citizenry, fostering a just and equitable society for all.
