Panama has officially launched the environmental impact assessment for the first phase of its planned Panama to David Railway. The National Railway Secretariat (SNDF) announced on Friday, November 14, 2025, that work has begun on the Category III Environmental Impact Study (EsIA) for the initial Panama to Divisa segment. This crucial step moves the massive infrastructure project from concept toward tangible reality, marking a significant milestone for the administration of President Jose Raul Mulino.
The government is partnering with the international firm WSP to conduct the comprehensive study. WSP brings extensive regional experience in engineering and environmental consulting for large scale infrastructure projects. The firm employs over 75,000 people globally and currently manages 200,000 active projects across all continents, according to its corporate website.
“This study marks a very important step for the project. The train is advancing in a responsible manner, taking into account the reality of each community and its natural environment. We want this project to be an example of how you can build progress while protecting what is ours,” said Henry Faarup, National Railway Secretary. [Translated from Spanish]
Fieldwork for the environmental baseline survey starts this month and will continue through March 2026. Teams will analyze environmental, social, and cultural conditions along the entire Phase 1 route from Panama City to Divisa. This corridor spans four provinces: Panama, West Panama, Cocle, and Herrera.
Project Scope and Community Engagement
The data collected will form the foundation for the project’s socio environmental evaluation. Officials stated this will help define management, prevention, mitigation, and environmental compensation measures. The goal is ensuring sustainable and responsible execution that balances development with ecological and community needs.
Community integration represents a core component of the assessment process. The study will strengthen social and community planning through direct engagement with residents living within the project’s area of influence. This includes conducting surveys, interviews, informational meetings, and creating dialogue spaces to incorporate local feedback.
This environmental review phase complies with legal requirements established under Executive Decree No. 1 from March 1, 2023. That executive decree regulates Chapter III of Title II of Law 41 of 1998, known as Panama’s General Environmental Law. Subsequent modifications were introduced through Executive Decree No. 2 on March 27, 2024.
Transformative Transportation Vision
The full Panama David Railway project envisions a 482 kilometer rail line featuring 14 stations. Its first construction phase will connect Albrook in Panama City to Divisa. Once completed, the high speed rail service could reduce travel time between Panama City and David to under three hours.
Trains are projected to reach speeds up to 180 kilometers per hour. This would dramatically cut transit times across the country’s western regions. The railway aims to transform Panama’s transportation landscape while stimulating economic development in provinces along its route.
Progress on the environmental impact study indicates the government’s commitment to advancing this campaign promise. The Mulino administration has prioritized infrastructure development as a key economic driver. Moving forward with the railway project demonstrates tangible steps toward fulfilling that agenda while addressing environmental and social considerations from the outset.
Completion of the environmental study represents the next critical hurdle before construction can begin. The findings will inform project design and operational protocols, potentially influencing the final route and station locations based on environmental and community assessments conducted over the coming months.