PANAMA has concluded a deal with Japan for the $2.6 billion financing  of Metro Line  3, using  Japanese monorail technology for the first time on  the American continent.

The arrangement also includes a $35 million grant for the recruitment of a project manager according to a state communications office announcement.

"The financing agreement is a recognition of the strength and credibility of Panama," said President Juan Carlos Varela in an appearance with Japanese Prime Minister Shinzo Abe. "Our economy is supported by strong fundamentals and today we are showing it."

Peime Minister , Abe said: "this is a historic project that will allow Japan to showcase high-quality infrastructure to Panama and Latin America."

The funding will be for a term of 20 years.