The proposed operation supports the West Panama Sanitation Programme. It aims at extending sanitation services beyond the Panama Metropolitan area to the neighbouring province of West Panama on the western side of the Canal. The EIB loan will finance the first component of the programme i.e. design and construction of collectors and sewerage networks, including domestic connections, in Burunga (Arraiján District). The rest of the programme will be financed by the World Bank (WB) as the leading international financial institution (IFI), the Latin American Development Bank (CAF) and the Government of Panama (GoP).
The programme contributes to the Panama Government's efforts to improve pollution abatement and the country's environmental sustainability. It will benefit an estimated population of 62 000 people and will avoid the discharge of 28 500 m3 per day of untreated wastewater into the environment. It will also indirectly have a positive economic impact due to its proximity to the metropolitan area of Panama. The project is in line with the EIB Water Sector Lending Policy and is eligible for financing under the EIB Climate Action and Environment Facility (CAEF) as it contributes to environmental sustainability through pollution abatement, to underpin sustainable growth in the region.
The project will have a very high positive environmental and social impact for the population of Panama. It will significantly reduce direct wastewater discharges into water bodies, thus contributing to improving public health and environmental conditions in the beneficiary area. The project's compliance with environmental and social principles of the EU, the EIB and the other IFIs, together with the applicable national environmental legislation and issues related to adaptation to climate change will be verified during the appraisal.
The Bank will require the promoter to ensure that the procurement of the project is carried out in line with the EIB Guide to Procurement.
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