The Board of Executive Directors of the Inter-American Development Bank (IDB) approved a Conditional Credit Line for Investment Projects (CCLIP) of $900 million aimed at improving the quality of life for the population of Panama, facilitating financing for water and sanitation projects.
As part of this credit line, the Board approved the first investment guarantee program for $250 million, a first operation designed to facilitate financing for projects that provide access to potable water services in the Metropolitan Area of Panama City (AMP) and Colón.
The implementation of this guarantee will enable the development of an innovative and pioneering solution in Panama, transforming the way project financing is structured and serving other sectors by facilitating private sector participation under more favorable conditions.
The program will directly benefit 80,500 people through improved access to potable water and 42,000 people with new access. Indirectly, it will benefit 360,000 residents by supplying water to meet demand.
The guarantee program, aimed at enabling private financing, will allow for the completion, commissioning, and maintenance of the Ing. José G. Rodríguez de Arraiján Water Treatment Plant and the Sabanitas Water Treatment Plant, guaranteeing the financial obligations of IDAAN related to these contracts.
The first guarantee operation of $250 million has a maximum amortization period of 20 years.
