Canal vs. Communities: Panama Faces Legal Storm Over $1.6 Billion Expansion

PANAMA CITY: Rural communities in Panama have filed a constitutional lawsuit in the Supreme Court to stop a $1.6 billion water reservoir project linked to the Panama Canal expansion, alleging it violates both national and international laws.

The suit, led by Coordinadora Campesina por la Vida, challenges the canal authority’s plan to build a reservoir on the Río Indio, which would reportedly displace around 2,500 people. Community representatives argue they were never properly consulted, and accuse the Panama Canal Authority (ACP) of misleading the public by claiming widespread support.

“We want it to be understood that the Canal has not done things right, that the Río Indio project must be stopped, and that a real dialogue should begin,” said Santander Tristán, the lawyer representing the communities.

Florentin Chiru, vice president of the farmers’ group, questioned the credibility of the ACP’s survey, stating: “They never asked the real question—do you want to leave your land, yes or no? What kind of census ignores that?”

The Canal Authority maintains that the reservoir is essential to ensure long-term water supply for operations, especially after two years of severe droughts disrupted global shipping.

The Supreme Court is now being asked to rule on whether the project breaches constitutional rights, environmental protections, and Panama’s international commitments. A decision on whether the court will take up the case is expected in the coming months.

– Livia Moreno