Panama, CAF sign loan for sanitation projects

Panama's health minister Miguel Mayo has signed a US$95mn loan agreement with Latin American development bank CAF, according to statements from the national government and the bank.

The 16-year loan will finance different sanitation works in the Arraiján district of the country's Panamá Oeste province, including the construction of a 250km wastewater collection and treatment network, and a wastewater treatment plant. The loan will also help finance improvement of local institutional capacity and feasibility studies for other potential works.

The loan was authorized by CAF last year and then received approval from Panama's government in February.

The initiative is set to benefit approximately 83,000 residents.

The project forms part of a US$640mn sanitation program for the Panamá Oeste districts of Arraiján and La Chorrera, and is being managed by the country's health ministry.

CAF has provided over US$2bn in loans to Panama during the past five years. According to the bank, some of those loans have been used to carry out waterworks related to potable water and sanitation systems, among other initiatives.

PICTURED: Panama's finance and health ministers attend the loan signing ceremony at CAF's headquarters.