EIB to support wastewater treatment upgrade in Panama

The Republic of Panama has secured a $50m loan from the European Investment Bank for upgrading wastewater treatment services in its capital Panama City.

The funds will be targeted towards the expansion of the Juan Díaz water treatment plant in the country.

The planned expansion is in line with the government’s 2015-2019 five-year strategic plan. Water has been identified as a priority sector in the plan, which prompts the country to better the coverage, quality and management of water services.

Treatment capacity of the existing facility is 190 000m³, which is expected to be doubled following the expansion.

EIB has granted this loan as its third for the Government of Panama. The bank will be processing the financial assistance under the current Latin America mandate, which allows the bank to support investment aimed at developing economic and social infrastructure.

Panama has been facing water crisis, the El Nino weather condition had prompted the country to announce a state of emergency to cope with the prolonged drought conditions.

Reservoirs have been depleted in the country, following which Panama had to impose water restrictions in August of last year.

Officials in the country intend to organise a meeting to seek ways for water resource management in face of the ongoing crisis, reports BNamericas.