The contract was awarded by Metro de Panamá, the owner and operator of the rapid transit system.
The scope of works will include the design, supply and installation of track and rigid catenary equipment.
TSO International director Gilles Philibert and TCP Rail CEO Gilles Philibert said: “This new project is a recognition of the expertise and quality of the TSO-CIM partnership in railway infrastructure in Panama.
“Our teams have already successfully delivered the equipment for lines 1 and 2 and will use their experience and know-how for this new project.”
At the peak of the project, around 300 employees will be involved with the laying of tracks and catenary for the extension.
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The northern extension will stretch from the current terminus at San Isidro station to the future terminus in Villa Zaíta.
CIM CEO Thomas Fournier said: “With this success, CIM has once again demonstrated its international railway know-how. We are delighted to contribute to the construction and maintenance of the Panama Metro.
“This success reinforces our links with our partners, strengthens our presence in the region and consolidates our exceptional relationship with Metro de Panamá.”
Meanwhile, TCP Rail also secured a three-year contract to provide maintenance services for line 2 (catenaries, track and workshop equipment).
Currently, TSO and CIM are working on the Line 2 extension, including two passenger stations.
Line 2 began commercial services in 2019.