Court ruling may allow new reservoir construction for Panama Canal, but 6-year timeline projected

In Panama City, a recent court ruling may pave the way for the construction of a new reservoir to address the water scarcity issues affecting the Panama Canal. Due to a prolonged drought reducing the fresh water supply necessary for operating the locks, the canal has limited the number of ships passing through daily. The Panama Canal administration has long sought to build an additional reservoir to supplement water from Lake Gatun, but a 2006 regulation had previously restricted expansion beyond the traditional watershed. However, the Supreme Court's new ruling has allowed for a reinterpretation of these boundaries, potentially enabling the project to proceed. Canal administrator Ricaurte Vásquez highlighted the significance of having a defined watershed, providing territorial assurance for the Panama Canal. Despite this positive development, authorities must engage with and secure approval from the approximately 12,000 residents living in around 200 villages near the proposed Indio River basin site. Vásquez emphasized that the timeline for the estimated $1.6 billion project's commencement will heavily rely on the successful collaboration with these communities, with assistant administrator Ilya Espino estimating that these consultations could take up to 1.5 years, followed by a construction period of three to four years. Insufficient rainfall has hindered the watershed system's ability to replenish the current reservoirs, which in turn supply water to the locks facilitating ship passage and also provide freshwater to Panama City, home to half of the country's 4 million inhabitants. The project's potential six-year construction timeline underscores the complexity and importance of addressing the water scarcity challenges facing the Panama Canal, with the successful implementation of the new reservoir holding significant implications for both the waterway's operations and the region's water supply.