New financing for restoration of priority river basins in Panama

(Special, February 3, 2009).- With the objective of partially financing the investment program for restoration of priority river basins, the Andean Development Corporation approved a US$18.4 million loan for the Republic of Panama. The executing agency will be the National Environmental Authority (ANAM) of that country.

"CAF maintains an important commitment to environmental sustainability as part of its mission to promote sustainable development and regional integration – CAF president & CEO Enrique Garcia said - which will be achieved by generating appropriate strategies and implementing programs to stimulate the development of innovative financing schemes in an effort to increase investment in the environment in the countries of the region."

García added that the objective of the program was the environmental restoration of 19 river basins by identifying and executing agro-environmental and renewable energy generation projects.

The Program which receives financing from the multilateral development bank will help develop Panamanian potential in generation of renewable energy and guarantee provision of sufficient water for human consumption and productive activities to a large part of the population.

The total cost is US$28.3 million, of which 65% will be covered by CAF. The Republic of Panama will contribute US$3 million and US$6.9 million will come from the beneficiaries of the program.

To make the selection, ANAM evaluated all the basins in the country to identify those which required attention by the State. The basins selected relate to the following rivers: La Villa; Chiriquí; Grande; Bayano; Santa María; Tuira; Antón; Pacora; Indio; Coclé del Norte; Chimán; Parita; Guararé; San Pablo; Tabasará; San Félix; Chico; Escarrea; and Chucunaque.