Panama Canal Adopts Measures to Protect Río Indio Communities

The Panama Canal presented has proposed budget for fiscal year 2026 to the Cabinet Council.

The budget is focused on long-term investments, with a particular emphasis on water sustainability through the Río Indio Lake project. It also includes efforts to diversify business activities, invest in workforce development and well-being, support the traditional and Western basins, and ensure the sustainable and competitive operation of the Canal.

During its presentation to the Cabinet Council, the National Government responded to concerns expressed by the Río Indio watershed communities. The inquiries focused on possible land speculation and irregular land management tied to the new lake’s construction.

In response, the government announced two protective measures: a legal definition of the project’s area of influence as well as an official declaration which classifies the work as a project of public interest.

Defining the area of influence legally establishes which lands and communities are connected to the project and outlines mechanisms to safeguard the rights of local residents and landowners. Any land sales, new construction, loans, changes in land use, or economic activities within this area will require prior approval from the Panama Canal Authority.

Similarly, the Cabinet Council approved a resolution declaring the Río Indio Lake a project of public interest. Requiring that all state institutions must actively collaborate for the orderly development of the project and addressing the needs of the community will be expedited to ensure more efficient and coordinated support.

The Río Indio Lake project is being developed to secure the water supply for more than 50% of the population and to support the region’s productive activities. Additionally, it will safeguard the continued operation of the Panama Canal over the next 50 years.