Photo credit: Flystock/Shutterstock
By Mike Schuler, gCaptain
The Panama Canal Board of Directors has approved critical funding for the construction of a new reservoir in the Rio Indio basin, marking a significant step toward ensuring water security for both the vital waterway and the country’s population.
Resolution No. ACP-JD-RM 25-1542 allocates resources for the project, which aims to increase water storage capacity in response to challenges posed by extreme weather events like the severe 2023-2024 drought that forced the Canal to implement draft restrictions and reduce daily transits.
“The project is part of the comprehensive solution to Panama’s water problem as it increases water storage capacity and is therefore preparation for future droughts,” according to official documentation from the Panama Canal Authority.
The Rio Indio initiative forms a critical component of the broader Water Projects Program designed to guarantee water availability for more than half of Panama’s population, nearby communities, and ongoing Canal operations.
Construction is expected to span approximately six years, positioning the project as “one of the most important public investments of the present decade” with significant implications for national job creation and economic growth.
The resolution includes comprehensive provisions for affected communities, allocating funds for compensation, resettlement, and support for families and property owners impacted by the development. Canal officials emphasize that this process will adhere to international best practices for social and environmental standards while ensuring informed community participation.
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