Press Release
IDB release
The Inter-American Development Bank (IDB) has approved a $38 million loan and a $9 million grant to boost electric and inclusive mobility and resilience in Panama City’s public transportation.
The operation approved by the IDB Board of Executive Directors will support the electrification of the bus fleet operated by MiBus at the El Chorrillo Operations Center and improve the city’s public transportation infrastructure.
The project will directly benefit approximately 7,700 people, including 5,945 who live in the Calidonia and Betania neighborhoods where the climate-smart urban development projects will be built, as well as 1,828 daily bus riders who use the 5 de Mayo Station. It will also indirectly benefit the 2 million inhabitants of the Panama City Metropolitan Area.
The MiBus system moves an average of 390,000 passengers per day on a fleet of 1,346 buses. Its main challenge is the renewal of 1,233 buses nearing the end of their useful life, which consume approximately 977,721 liters of diesel, emitting exhaust that harms the health of city dwellers.
The project will fund a fleet of 53 new electric buses for the El Chorrillo Operations Center, as well as the design and implementation of the charging infrastructure and its management system.The operation will also make urban transportation infrastructure more climate resilient and inclusive by financing a set of complementary projects to those executed by the Ministry of Public Works. These include storm drainage systems and urban works to enhance the city’s climate resilience and accessibility.
The project will also strengthen MiBus’s capacity to manage its electric bus fleet and support programs to increase the share of female drivers and mechanics in electric mobility. It will also finance technical assistance on managing construction projects for the Ministry of Public Works and strengthen its capacity to increase the resilience of urban transportation infrastructure.
The $38 million loan consists of:
- $20 million from the IDB, with a 15-year repayment term, a 5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).
- $18 million from the Green Climate Fund, of which $8 million have a 40-year repayment term, a 10.5-year grace period, and zero interest, while $10 million have a 20-year repayment term, a 5.5-year grace period, and an annual interest rate of 0.75%.
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