The plans of the Panama Canal to secure new water sources remain crucial for the country's economic performance and its credit rating.
Renzo Merino, Panama's lead analyst at Moody's, highlighted that projects like the Río Indio are fundamental to maintaining the Canal's operations amid growing climate pressure.
This project, involving an estimated investment of over US$1.5 billion with construction scheduled to start around 2027, is the most viable solution to prevent situations like the one in 2024 when the Canal had to restrict vessel traffic due to a lack of water.
Merino recalled that in previous years, the country's economic dynamism was closely tied to the performance of the interoceanic route. Therefore, addressing this issue remains very important not only for the government's credit profile.
The analyst also acknowledged the contribution the Canal has made to public finances in the most difficult times. "It must be recognized that despite the difficulties, the Canal did help the state with the income it could provide during that period," he noted.
However, he warned that water vulnerability remains one of the most significant factors for Panama.
Merino pointed out that the Canal's performance has a dual impact: on the state, for which it is currently "perhaps the most important source of income," and on the Canal itself, whose rating is higher than the government's and depends directly on the operational continuity guaranteed by projects like Río Indio.
"Clearly, the issue of water management and Panama's exposure to climate events is very important."
