Panama Canal plans new reservoir to combat drought issues

Posted on July 18, 2024   |  

The Panama Canal Authority aims to build a new reservoir in the next 6 years to address the canal’s drought issues.

A July 8 court ruling allowed the $1.6 billion project by reinterpreting a 2006 regulation that restricted expansion outside the current watershed.

The new reservoir will be along the Indio River, supporting Gatun Lake, one of the three lakes that supply water to the canal's locks.

Drought in 2023 reduced the canal's daily traffic from 36 ships to 31, but the rainy season has since increased traffic to 34 ships per day.

Approval is still needed from 12,000 residents in 200 villages around the Indio River basin to move forward with the project.