Panama Canal Approves Funding To Boost Water Supply Against Drought 

 

The Panama Canal is moving forward with efforts to enhance water supply after the impact of the drought in 2023/24 on the key waterway.

Primarily, the Panama Canal Board of Directors has approved funding for the construction of the Rio Indio Lake Project within the Indio River Watershed.

This project is designated as a national interest initiative aimed at enhancing water security for Panama and is designed to mitigate the effects of droughts and ensure the Panama Canal’s operational reliability.

The Panama Canal Authority has been facing significant challenges due to prolonged droughts, resulting in restrictions on vessel transits in 2023 and 2024. The expansion of water storage capacity is deemed critical for the canal’s continued operation and economic impact.

The project, part of the Water Projects Programme, intends to increase water storage capacity to serve over 50% of Panama’s population, local communities, and Panama Canal operations. The construction is expected to take approximately six years. The approved funds include allocations for compensation, resettlement, and support for affected families and property owners.

A census, initiated in August 2024 and scheduled to conclude by April 30, 2025, is underway to identify impacted residents and facilitate compensation processes.

“The next 12 to 18 months will be devoted to the joint construction of the plan, so there will be no pressure on the start of the resettlement-related actions, taking into account that the work would start in 2027 and would last at least four years,” said Panama Canal Deputy Administrator Ilya Marotta told residents in one community meetings.

 

The Panama Canal teams have commenced community meetings to inform residents about the resolution, the census, and the development of the Resettlement and Livelihood Restoration Plan. These meetings include house visits and community gatherings, with support provided through six Community Relations Offices.

Panama Canal: Indio River Project will be Carried Out ‘in an Orderly and Fair Manner with the Residents’

The Deputy Administrator of the Panama Canal, Ilya Espino de Marotta, at the meeting with members of the Peasant Coordinator for Life and residents of some communities in the Indio River basin.

According to preliminary data, in the reservoir area there are 538 households and 1,714 people: 53% are men and 47% are women.

Panama City, Panama: The Deputy Administrator of the Panama Canal, Ilya Espino de Marotta, assured that the process to compensate and indemnify people who are impacted by the construction of the Rio Indio Lake will be developed in an orderly, fair and transparent manner, according to a statement released by the Panama Canal.

This took place during a meeting with representatives of the Peasant Coordinator for Life and residents of some communities in the Indio River basin. At the meeting, held in the community of Las Marías de Penonomé, Coclé province, the deputy administrator reiterated that “the Canal assumes the commitment and responsibility to carry out this process and to do it well, treating everyone equally.

The time deemed necessary will be invested to develop the Resettlement and Livelihood Restoration Plan with the residents.” An explanation was given that the next 12 to 18 months will be devoted to the joint construction of the plan, so there will be no pressure on the start of the resettlement-related actions, taking into account that the work would start in 2027 and would last at least four years.