Panama greenlights US$95mn sanitation loan

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Tuesday, February 14, 2017

Panama's cabinet has authorized finance ministry officials to sign a US$95mn wastewater project loan from Latin American development bank CAF.

The initiative, in Arraiján district, West Panama province, involves the construction of a wastewater collection and treatment system that will benefit around 83,000 people.

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The 16-year loan was approved by CAF last year, according to a notice in the country's official gazette.

The project forms part of a US$640mn sanitation program for the West Panama districts of Arraiján and La Chorrera and is being managed by the country's health ministry.

According to authorities, some US$250mn of the total required investment will be financed by loans from multilaterals such as the Inter-American Development Bank (IDB), the European Investment Bank and the Central American Bank for Economic Integration.

The signing of a US$150mn loan agreement with the IDB to fund other projects that are part of the program was approved by Panama's national economic council last week.

More than 300,000 people are set to benefit from the overall initiative, which complements a US$2bn program to improve sanitation and reduce water pollution in the Panama bay area, which was launched by the government in 2007.