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HomeNewsPanama Canal Water Project Faces Opposition March in Colón

Panama Canal Water Project Faces Opposition March in Colón

Campesino communities from the Río Indio basin will march through Colón this morning in their latest protest against a reservoir the Panama Canal Authority plans to build on the river. The demonstration begins at 10 a.m. from Sabanitas and followes the transisthmian highway into the city center, ending near the Cristo Redentor monument on Calle Primera. The Coordinadora Campesina por la Vida y Contra los Embalses organized the action.

The roughly 4,600-hectare reservoir would flood land in the middle section of the Río Indio basin and require the relocation of communities along the river. The authority has described the project as a priority to increase water storage and support canal operations along with drinking water supplies for more than half of Panama’s population during dry periods. Opponents say the plan would displace families, submerge farms and homes, and disrupt their livelihoods without adequate alternatives.

The authority set the project as a national priority in February 2025 through a board resolution that allocated funds for construction, compensation and resettlement. A census of affected communities concluded on April 30, 2025. The authority has stated it will develop a resettlement and livelihood restoration plan with community participation and has opened local offices for dialogue. Construction is not expected to begin before 2027, with completion targeted around 2031.

Residents from communities in Colón and neighboring Coclé province have held repeated protests since early 2025, including river demonstrations and local marches. They argue the flooding would affect thousands of hectares of land used for agriculture and that relocation sites would not support their current way of life. Some groups have pointed to other water management options, such as greater use of existing reservoirs like Lake Bayano.

The project carries an estimated cost of approximately $1.6 billion. It would add significant storage capacity through a new lake connected to Gatún Lake, in part via a transfer tunnel. The authority links the need for added storage to droughts that reduced canal transits in 2023 and 2024 and to long-term population and economic demands on water resources.

Saturday’s march will have slogans linking the reservoir opposition to resistance against metallic mining projects in nearby areas such as Donoso. Organizers described the action as a defense of land, water and community life.

The authority has maintained that any resettlement will follow fair processes and international standards, with dedicated funding for compensation and support programs. It has conducted hundreds of community meetings and voluntary social projects in the basin while advancing technical studies. Community leaders have rejected the project in its current form and said they will continue organizing.

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