Idaan details project to improve efficiency

Juan Felipe de la Iglesia, director of Panama water utility Idaan, spoke on the floor of the national assembly Wednesday to brief legislators on a project to improve the operational and commercial management of the utility.

The executive told legislators that following the implementation of the project - which is aimed at improving potable water services for 2mn residents in the Panama City metropolitan area - water losses in the distribution system will fall from 50% to 30%, while services will remain uninterrupted around the clock, seven days a week.

The project involves a technical assistance component, for which a US$62.6mn contract was awarded in February to Spanish water solutions firm FCC Aqualia. The term of the contract is five years.

The entire project, which also includes physical works, will require US$255mn in investments, De la Iglesia said.

Some US$250mn of that sum will be financed by the Inter-American Development Bank, while the remaining US$5.5mn will be provided by the local government.

In addition to the sum to cover the consultancy services, another US$183mn will be invested in the implementation of various different works, such as the rehabilitation of potable water treatment plants, conduction lines and pumping stations. Another US$6.6mn will fund auditing processes to monitor contract compliance and carry out follow-up reviews.

The funding from the national government will specifically be used to strengthen Idaan's operational and commercial management, as well as to cover complementary expenses.