The Inter-American Development Bank (IDB) has approved a Conditional Credit Line for Investment Projects (CCLIP) of $900 million to improve the quality of life in Panama by facilitating financing for water and sanitation projects. This initiative aims to expand access to potable water services and enhance urban infrastructure, particularly in the Metropolitan Area of Panama City (AMP) and Colón.
Under this credit line, the Board approved the first investment guarantee program of $250 million, designed to facilitate private financing for potable water projects. This pioneering approach transforms project financing in Panama, enabling greater private sector participation under more favorable conditions while serving as a model for other sectors.
The program will directly benefit 80,500 people through improved access to potable water, with 42,000 gaining new connections. Indirectly, it will serve 360,000 residents by ensuring sufficient water supply to meet demand. The guarantee will support the completion, commissioning, and maintenance of the Ing. José G. Rodríguez de Arraiján Water Treatment Plant and the Sabanitas Water Treatment Plant, securing the financial obligations of IDAAN related to these projects.
The $250 million guarantee operation has a maximum amortization period of 20 years, marking a long-term commitment to improving water infrastructure and promoting sustainable private sector involvement in Panama’s water and sanitation sector.
