The Panama Canal Board of Directors has approved funding for the Rio Indio Lake Project, a key initiative within the Indio River Watershed aimed at enhancing water security for Panama and ensuring the long-term operational stability of the Panama Canal.
Recognized as a national interest project, the initiative is designed to mitigate the effects of prolonged droughts, which have significantly impacted canal operations in 2023 and 2024, leading to restrictions on vessel transits. Expanding water storage capacity is critical for maintaining the canal’s efficiency and economic contributions.
As part of the Water Projects Programme, the Rio Indio Lake Project will increase water storage capacity to support more than 50% of Panama’s population, local communities, and canal operations. The construction is expected to take approximately six years, with funding allocated for compensation, resettlement, and support for affected families and property owners.
A census, launched in August 2024 and scheduled for completion by April 30, 2025, is currently identifying impacted residents to facilitate the compensation process.
“The next 12 to 18 months will focus on collaboratively developing the Resettlement and Livelihood Restoration Plan, ensuring no immediate pressure on resettlement actions. Construction is projected to begin in 2027 and will take at least four years,” stated Panama Canal Deputy Administrator Ilya Espino de Marotta during a community meeting.
To keep residents informed, Panama Canal teams have initiated community meetings, house visits, and engagement sessions with support from six Community Relations Offices. These efforts aim to ensure transparency in the process.
Commitment to a Fair and Orderly Process
During a meeting with representatives of the Peasant Coordinator for Life and residents from communities within the Indio River basin, Deputy Administrator Ilya Espino de Marotta reaffirmed that the compensation and resettlement process will be conducted fairly, transparently, and with equal treatment for all affected individuals.
According to preliminary data, the reservoir area is home to 538 households and 1,714 people, with a demographic breakdown of 53% men and 47% women.
“The Panama Canal Authority is fully committed to managing this process responsibly and equitably. The necessary time will be dedicated to developing a comprehensive Resettlement and Livelihood Restoration Plan, ensuring that all affected residents receive fair treatment and support,” Marotta emphasized.
With construction set to commence in 2027, the Rio Indio Lake Project stands as a strategic and sustainable solution to secure the canal’s long-term water supply, benefiting both the nation and global maritime trade.
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