Europe lends $50m to expand wastewater treatment in Panama City

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

Funds will be used to double the capacity of the Juan Díaz treatment plant from 190,000 m3/day to 380,000 m3/day.

The planned expansion is in line with the government's 2015-2019 five-year strategic plan that outlines an aim to have a better coverage of water.

Past figures have shown that only 60% of the city’s population is served by the wastewater network (read WWi article).

Panama has been facing a 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.

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.

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