Politics Economy Local 2025-11-19T04:09:42+00:00

Panama Government Approves Contracts for Metro and Telecommunications Development

The Panama Council of Ministers approved special contracts for a consortium to finish Metro Line 1 to Villa Zaíta and for the AIG to centralize state telecom services, saving $39 million annually. An agreement was also reached with Visa and Mastercard to stop practices harming small businesses.


Panama Government Approves Contracts for Metro and Telecommunications Development

The Panama Metro has hired a consortium that is already familiar with the project, knows the outstanding issues, and what needs to be finalized to ensure the work does not stall. The Metro states that this same consortium has the experience, methodology, and personnel to push forward the pending tasks and close the gaps left by the previous civil contract.

The Council of Ministers gave the green light for a special hiring process to allow the Consortium PM Extensión Línea 1 to continue managing the construction that will extend Metro Line 1 to Villa Zaíta, a dream that many in the northern part of the city have been waiting for. Resolution 136-25 allows the Panama Metro to pay B/. 3.5 million for 22 months of management, supervision, and technical monitoring. In other words, there is no need to reinvent the wheel; only what is already in progress needs to be completed.

Another major decision by the Cabinet was three resolutions (133-25, 134-25, and 135-25) that authorize the AIG to contract all of the State's telecommunications services using the National Multiservice Network (RNMS). The benefit? A savings of $39.1 million per year starting in 2026. This involves data centers, internet, communication links, digital security, and the integration of more than 7,000 state access points, from ministries to institutions that need access to critical platforms like the MEF's ISTMO system.

The authorized companies include Cable & Wireless, Telecomunicaciones Digitales, TransOcean Network, Panama Digital Gateway, Galaxy Communications, and others that have already passed technical and administrative evaluations. In short, the goal is to create a cheaper, more secure, and faster system without distributing contracts all over the place.

The Cabinet also approved resolutions 131-25 and 132-25, which endorse the Judicial Settlement Agreement between AIG, Visa, and Mastercard, thus closing a case for alleged monopolistic practices in electronic payment services. As part of the agreement, the companies commit to:

Not applying the Expanded Merchant Location Program (EMLP)—or anything similar—for two years. If after that time they wish to revive a similar program, they must first obtain permission from AIG for another three years. Contribute B/. 50,000 for financial education administered through a trust fund. Present a bond of B/. 250,000 to guarantee compliance with the agreement. All of this aims to level the playing field for Panamanian merchants and prevent abuses in the use of credit cards.