Panama's water and sanitation crisis is worsening due to the lack of a coordinating entity (CONAGUA), which is currently headless. While Panama spends 0.31% of its GDP on water, the highest in the region, it's still insufficient. Official data shows 10% of the population lacks basic drinking water, and 17.1% of homes lack proper sanitation. To address this, a new state-owned enterprise is proposed, modeled after the successful Panama Canal administration. This entity would have full administrative and financial autonomy, responsible for the entire water cycle, from drinking water to wastewater treatment and watershed management. The goal is to create a single, accountable body to replace the current fragmented system where over 15 institutions have overlapping responsibilities, leading to inefficiency. With a critical window for reform closing, Panama needs to invest approximately $1.12 billion annually over the next decade to meet growing demand. The fundamental question remains: which institution has the capacity to execute such an ambitious infrastructure plan with transparency and efficacy?
