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Home » Panama Real Estate News, Events and Analysis Blog from Casa Solution » Panama Starts Environmental Impact Study for First Phase of the Panama–David Railway

Panama Starts Environmental Impact Study for First Phase of the Panama–David Railway

Panama has taken a decisive step in the development of the planned Panama–David–Frontera railway with the start of the Environmental Impact Study (EsIA) for the first phase of the project. This initial section will cover the route between Panama City and Divisa, according to the Secretariat of the National Railway of Panama (SNDF).

The EsIA, categorized as a Category III study due to the scale and complexity of the project, is being prepared in collaboration with WSP, a global engineering and consulting firm with extensive experience in major infrastructure projects. Fieldwork is scheduled to begin in November 2025 and continue through March 2026.

What the Study Will Evaluate

The EsIA aims to establish an environmental, social, and cultural baseline for the provinces included in the first phase: Panama, Panama Oeste, Cocle, and Herrera. This baseline is essential for identifying current conditions and evaluating the potential impacts of the future railway.

The SNDF explained that the study will generate key data used to define preventive, mitigation, and compensation measures. These measures are meant to ensure that the development of the railway aligns with responsible planning and the well-being of nearby communities.

The process will follow international sustainability standards and the requirements of the Multilateral Development Banks, as well as the national environmental regulations outlined in Executive Decree No. 1 of March 1, 2023, and the modifications introduced by Executive Decree No. 2 of March 27, 2024.

Community Participation Included

A significant part of the study includes direct interaction with residents throughout the project area. The SNDF confirmed that surveys, interviews, informational meetings, and open dialogue spaces will be implemented to ensure that the public remains informed and actively participates in the process.

According to Henry Faarup, the National Railway Secretary, this stage reflects the project’s commitment to social and environmental responsibility. He noted that the goal is to create a model of development that respects the realities of each community while progressing toward a modern national transport system.

Role of WSP in the Process

WSP brings substantial technical capacity to the project. The firm has more than 75,000 employees worldwide and oversees roughly 200,000 active projects across continents. Their expertise spans transportation and infrastructure, environmental sustainability, mining, industry, and water resource management.

Their participation reinforces the intention to align the project with global best practices in engineering, environmental management, and long-term infrastructure planning.

The Larger Vision of the Railway

The railway proposed by the administration of President Jose Raul Mulino envisions a 482 kilometer line with 14 stations. The full route would connect Panama City to David in under three hours with maximum speeds of up to 180 km/h. The first phase, Albrook to Divisa, is considered the foundation on which the rest of the system would be built.

While construction has not yet begun, the completion of the environmental assessment represents a critical requirement before any work can move forward.

Why This Phase Matters

The environmental impact study serves as one of the most important early milestones in any large-scale infrastructure project. It determines whether planned works can proceed responsibly, what adjustments might be needed, and how potential risks can be managed.

For the Panama–David railway, this phase sets the groundwork for decisions that will shape the implementation of one of the most ambitious transportation projects in the country’s recent history.


Written on: November 16, 2025

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