Court Decision May Greenlight New Reservoir for Panama Canal Amid Drought

Waterway managers announced on Monday that a recent court decision might pave the way for constructing a new reservoir to supply water to the Panama Canal. The canal has been forced to limit the number of ships passing through daily due to a severe drought that has reduced the supply of fresh water necessary for operating the locks.

The construction phase of the project is projected to last between three to four years. Although Panama has long aimed to build an additional reservoir to support the primary water source from Lake Gatun, a rule implemented in 2006 had previously prevented any expansion beyond the original watershed area.

Ilya Espino, the assistant canal administrator, estimates that discussions regarding the project might last for 18 months. Following these discussions, the construction could take three to four years. The entire project is expected to unfold over a six-year period, considering social, environmental, construction, and reservoir filling aspects.

“The reservoirs are essential not just for the operation of the Panama Canal, but also to guarantee access to clean drinking water for the Panamanian population, as required by law,” stated the Panama Canal administrator. The current rainfall has been insufficient to sustain the watershed system of rivers and streams that supply water to the existing reservoir system, which, in turn, fills the locks that transport ships over the terrain. This watershed is also crucial for providing freshwater to Panama City, where about half of the country’s 4 million people live.

However, to proceed with the project near the Indio River basin, authorities will need approval from approximately 12,000 residents living in about 200 villages in the vicinity.

Global shipping has been disrupted due to the decrease in canal traffic to 31 ships per day, compared to the typical 36 to 38. This disruption comes at a time when other significant water routes are experiencing difficulties, exacerbated by attacks on ships in the Red Sea by Yemen’s Houthi rebels, which have forced vessels to take longer and more expensive routes around Africa.

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