PANAMA CITY, July 31 (Reuters) – Communities in Panama that would have to relocate under the Panama Canal’s plan to build a $1.6 billion reservoir filed a Supreme Court challenge on Thursday, stating that the project, intended to enable more vessel transits, is unconstitutional.
Approximately 2,500 people would be impacted by the construction of the Rio Indio reservoir, as per the canal authority’s figures. The canal needs to secure more water after a recent drought necessitated ship transit restrictions from spring 2023 to early 2024.
The reservoir’s construction would enhance the canal’s transit capacity by up to 15 vessels per day during the dry season and also provide drinking water to Panama’s 4.5 million residents.
The farmers group, Coordinadora Campesina por la Vida, which filed the lawsuit, expressed that most residents do not wish to be relocated. They argue that the project violates the constitution on six grounds, including neglect of human rights and environmental treaties signed by the country. The challenge also alleges that the canal authority failed to consult properly with the affected communities.
An alternative proposal to enlarge a reservoir fed by the Bayano River, which would not require displacing families, is suggested by the group as a better option for the canal to consider.
“The canal has not handled things appropriately,” stated Santander Tristan, a lawyer representing the communities. “The Rio Indio project must be halted, and a dialogue process initiated.”
Florentin Chiru, vice president of Coordinadora Campesina por la Vida, accused the canal authority of dishonesty regarding community support for the project, stating that the crucial question of whether residents wanted to leave their land was never asked.
Environmental concerns were also raised, particularly about the construction of a large dam to contain the Indio River, which some fear could harm Panama’s biodiversity.
Amidst protests by about 100 farmers and residents from the Rio Indio area outside the court, 64-year-old Teodoro Rivas emphasized, “We are not against progress. We oppose the seizure of our land without our consent.”
The reservoir is part of an $8.5 billion project aimed at expanding the canal’s capacity to accommodate more vessel traffic and meet the growing demand for port services, revealed Panama’s President Jose Mulino.
(Reporting by Elida Moreno and Marianna Parraga; Writing by Sarah Morland; Editing by Natalia Siniawski and Cynthia Osterman)
(c) Copyright Thomson Reuters 2025.
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