The "significant investment" was confirmed last week following a meeting between president Cortizo Cohen and Mauricio Ramos, CEO of Millicom.
Millicom has added 78 mobile network sites as of May this year, reaching more than 450,000 people and in H2 this year will add 143 new sites throughout the country.
Ramos said: "By working together with the government, we are enabling expanded and improved access to telecommunications, adding to the country's competitiveness, and creating a better, increasingly digital future for all the communities we proudly serve.
"We share the same ambition: to bring progress to all corners of the country and promote the sustainable digitalization of Panama," he added.
TIGO is planning to modernise and expand its fixed and mobile networks with the latest technology for increased capacity and speed, and for expanded TV, fixed and mobile internet and phone services.
The company plans to expand its coverage throughout the country, including Bocas del Toro, Darién, Coclé and Indigenous Comarcas, contributing significantly to the government's strategy and closing the digital divide for a more inclusive society with equal access to information and knowledge.
In addition to service expansions the funds will also cover the creation of TIGO’s Fintech Hub in Panama. The number of transactions on TIGO's mobile money platform has doubled in the last year, the firm said.
“Millicom’s presence here today confirms the great effort by Panamanians to be facilitators of good investments that bring better opportunities to Panama,” said the President of the Republic of Panama, Laurentino Cortizo Cohen. "Two years ago, when we met with the CEO of Millicom, I spoke to him about being facilitators and the facts confirm this. My government has been a facilitator of good investments and you are delivering on your commitment to the country and Panamanians.
“As we sit here today, the decision has been made to modernize the network, impacting 800,000 Panamanians, of which 200,000 had no coverage. Millicom’s investment of $250 million will have great social and economic impacts and will provide coverage to locations that are difficult to access, which is part of the Colmena Plan,” Cohen added.
