US$110 million financing for the road reorganization project in the historic Old Panama

Arias, Fábrega & Fábrega represented Citibank, N.A., Panama Branch, in connection with the financing of the portion of the Panamanian Government's Road Reorganization Program relating to the old City of Panama. 

The contractor is Constructora Norberto Odebrecht, S.A., a Brazilian company, acting through its Panamanian branch.

It was the first transaction of its type that did not benefit from tax exemptions, resulting in a deep analysis of the tax implications and in negotiations among multiple parties, both in Panama and the United States, in an effort to find the most tax-efficient structure.

About Panama la Vieja
"Panama la Vieja" or Old Panama is the name used for the architectural vestiges of the Monumental Historic Complex of the first Spanish city founded on the Pacific coast of the Americas. Panama La Vieja was declared a UNESCO World Heritage Site in 1997. In recent years, the Panamanian government has restored several of the remaining structures of the oldest European town on the American mainland, as well as established better access points for tourism purposes, but the roads around it remain today an important passageway in the new City of Panama.