- The Panama Canal Board has approved resources for a new lake in the Indio River Watershed.
- The project ensures water security for over 50% of Panama’s population and Canal operations.
- It enhances resilience against future droughts and supports national economic growth.
- Compensation and resettlement plans follow global social and environmental best practices.
The Panama Canal Board of Directors has approved the construction of a new lake in the middle course of the Indio River Watershed as part of its Water Projects Program. This initiative is designed to secure water supply for more than half of Panama’s population, nearby communities, and the Canal’s operations while supporting various economic activities nationwide.
Enhancing Water Security and Canal Sustainability
This project is a crucial component of Panama’s broader strategy to address water shortages. By significantly increasing water storage capacity, it acts as a safeguard against severe droughts like those experienced in 2023-2024. Additionally, the project strengthens the sustainability, reliability, and competitiveness of the Panama Canal, benefiting both the country and global trade.
Commitment to Fair Resettlement and Compensation
The resolution includes funding for compensation, resettlement, and support for families and property owners affected by the project. The resettlement process will follow global best practices, ensuring fair treatment and active community participation. A Resettlement and Livelihood Restoration Plan will be developed to protect the rights, culture, and traditions of affected families while promoting sustainable well-being.
Employment and Economic Growth
Planned for completion within six years, the lake project represents one of Panama’s most significant public investments of the decade. It is expected to generate substantial employment opportunities and drive national economic development.
Community Engagement and Ongoing Census
To facilitate a smooth transition, a detailed census of families in the affected area began in August 2024 and will be completed by April 30, 2025. This baseline data will help refine compensation and resettlement efforts.
Following the project’s approval, the Panama Canal Authority has launched community outreach initiatives, including house visits and public meetings. Residents are encouraged to participate in the census and provide input on the Resettlement and Livelihood Restoration Plan. Six Community Relations Offices have been established to offer continued support and assistance throughout the process.
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Source: Panama Canal Authority
