The Diplomat in Spain

The programme’s action area./ Photo: saneamientodepanama.gob.pa

The Diplomat. 30/06/2017

The Cabinet authorized yesterday the granting of a credit of 50 million euros for Panama, charged to the Development Promotion Fund (FONPRODE), for the financing of the Sanitation Programme of the Districts of Arraiján and La Chorrera.

The Programme’s general objective is to contribute to the improvement of sanitation conditions connected to the water system and reduce contamination of urban rivers and riverbeds of the Districts of Arraiján and La Chorrera in the Province of Panama West.

This stage of the Programme will affect an estimated population of 188,500 inhabitants at the beginning of its execution and it will allow increasing the coverage of the sewer system of the Districts of Arraiján and La Chorrera from 50.7% to 69%.

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The programme will benefit 188,500 people and it will be financed jointly by the IDB and the EIB, among others

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The credit will have an amortization schedule of 25 years, with a grace period of five years included in the 25 and a fixed annual interest rate of 3.5%. The total cost of the Programme amounts to 640,123,159 dollars and it will be financed jointly with the Inter-American Development Bank (IDB, which will contribute 150,000,000 dollars), the Central American Bank for Economic Integration, the Andean Development Corporation (CAF in its Spanish acronym), the European Investment Bank (EIB) and local financial contributions.

The Government has also authorized the payment of up to 275,000 dollars to the IDB, charged to FONPRODE, for the monitoring and supervision of the aforementioned Sanitation Programme for Panama.