The Panama Canal Board of Directors, through Resolution No. ACP-JD-RM 25-1542, has approved funding for the construction of a new lake within the Indio River Watershed. This project is designated as a national interest initiative aimed at enhancing water security for Panama.
The project, part of the Water Projects Program, 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 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.
The project 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. The expansion of water storage capacity is deemed critical for the canal's continued operation and economic impact. Furthermore, reports from the World Bank emphasize the increasing importance of water management infrastructure in regions experiencing climate change impacts. The Rio Indio Lake Project aligns with broader efforts to enhance water resource management in Panama.
The Panama Canal Authority is the autonomous agency responsible for the operation, maintenance, and management of the Panama Canal.
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects.