Panama Canal Water Reservoir Sparks Legal and Community Conflict
Communities in Panama have filed a lawsuit against a $1.6 billion Panama Canal reservoir project, alleging constitutional violations. The project aims to manage water resources after droughts but faces opposition over environmental, human rights concerns and claims of inadequate consultation with affected communities.

A significant legal battle has erupted as communities in Panama challenge a $1.6 billion project by the Panama Canal to construct a vast water reservoir. Claiming constitutional breaches, the affected communities brought their case to the Supreme Court on Thursday.
The canal, a cornerstone of global freight transport, argues that the development of a reservoir in the Rio Indio is crucial for its expansion and effective water management. Recent droughts in 2023 and 2024 highlighted the need, pressing the canal to limit vessel transits. However, community lawyer Santander Tristan insists on halting the project to initiate dialogue, citing the canal's missteps.
Data from the canal authority suggests approximately 2,500 residents could be displaced. The lawsuit accuses the project of violating six constitutional tenets and ignoring international human rights and environmental agreements. Coordinadora Campesina, the rural group leading the lawsuit, alleges manipulation of community consent data and questions the integrity of the consultation process.
(With inputs from agencies.)