Panama Nears Completion of Talks on Río Indio Reservoir Construction

The Minister for Canal Affairs, José Ramón Icaza, announced that the coordination meetings leading to the construction of the Río Indio reservoir and agreements with residents for their relocation are nearing completion. He stated that to date, six of the seven sessions required by the International Finance Corporation's (IFC) performance standard to begin talks with residents have been held. Icaza noted that the final meeting could take place in January of next year to complete the remaining project phases, including establishing the environmental boundary and relocations. Once the meetings conclude, talks with residents will resume to carry out the relocation process, which will begin with non-residents in the area. Although the project was initially slated for bidding in the first quarter of next year, negotiations with residents have extended beyond the schedule due to some opposition to the project. However, the Panama Canal Authority (ACP) has reiterated that everything will be done in common agreement with local residents. "We have set up participatory platforms in nine locations within the Río Indio basin, and as the standard dictates, seven meetings must be held; to date, we have covered six," he said. The Administrator of the ACP, Ricaurte Vásquez Morales, acknowledged that the time needed to engage with communities is outside their control, but they are doing what is necessary to meet the estimated 24-month deadline. The minister emphasized that the most critical aspect of this construction is the social one; therefore, dialogue with residents has been constant. "Communication exists and happens every day." According to data provided by Icaza, this group amounts to approximately 150 families; the rest will be part of the second phase of relocations. The construction of the reservoir, which aims to guarantee the availability of drinking water in the country, is expected to affect around 550 families, meaning 2,500 people who will be relocated to adjacent areas. In parallel, work is being done on the environmental baseline to assess its impact through geotechnical and geological explorations to determine its design and advance the bidding process by the end of 2026.