Panama dam dispute - Rural communities oppose reservoir on Indio River to boost ship traffic amid fears of land rights and survival

"Rural communities in Panama's Rio Indio region held a major march on Saturday against a proposed reservoir project linked to the Panama Canal. Footage shows hundreds of residents walking along the outskirts of Rio Indio, with some travelling on horseback and others on wooden rafts. The government-backed project, proposed in 2025 and expected to begin construction in 2027, would create an artificial reservoir to supply water to the Panama Canal and support its operations. It includes a tunnel of around nine kilometres to move water within the canal system. Authorities say the project would help secure water supplies for more than half of Panama's population for at least 50 years and allow increased ship traffic through the canal. According to the opponents, it would force around 38 rural communities to relocate, destroy agricultural land, disrupt traditional ways of life and cause environmental damage. "The reservoir has countless impacts, especially the loss of human life, culture and the development of communities," said Digna Benitez, a resident of the Nancito community in Rio Indio. Protesters also accused the Panama Canal Authority and ERM of acting arbitrarily, alleging that they entered community areas without consent and failed to ensure transparency or meaningful public participation. "I want to denounce the Panama Canal Authority and the company ERM for carrying out very unjust actions in our communities. When they are not granted permission to enter, they set up in public areas and put up signs saying, 'Do not enter private property.' That concerns us, because if we do not give them access," said a resident of the Nancito community, Rio Indio. In response, the government promised new housing, land and financial support for those displaced by the project. Authorities also say the scheme will improve sanitation services in some communities and allow residents to receive legal land titles in new areas. The rural movement said it remains open to collective and transparent dialogue, but promised to continue resistance through marches, protests and public actions in defence of land, water and livelihoods."

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