IDB approves $54m loan to improve Panama water and sanitation services

The Inter-American Development Bank (IDB) has approved a loan of $54m to Panama to reduce unequal access to potable water and sanitation services.

The funds will allow the country to improve, rehabilitate and expand its water and sanitation services in central and western provinces.

The funds are made available under the Water and Sanitation Multiphase Investment Program. They will significantly improve residential access to clean water in Panama for more than 33,000 households. Over 2,200 households will be provided with networked connections to the sewerage system.

The loan will also address non-revenue water issues, which can be resolved by upgrading and expanding water and sanitation infrastructure. Panama will also modernise national water utility IDAAN and carry out institutional strengthening aimed at improving water resource management and conservation.

The IDB loan is set for a 25-year amortisation period, with a 5.5 year grace period and a LIBOR-based interest rate, which its local counterpart funds total $15.4m.

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Image: The programme will allow Panama to reduce unequal access to potable water and sanitation services. Photo: courtesy of Inter-American Development Bank.