Luxembourg, 04/01/2008 (Agence Europe) - The European Investment Bank (EIB) is providing a US$ 40 million loan to the Republic of Panama for the improvement of sanitation and environmental conditions in the Panama city and bay area through wastewater treatment.
The overall project will be co-financed by the EIB, the Inter American Development Bank (IADB) and the Japan Bank for International Cooperation (JBIC), and is part of Panama's government investment programme to improve sanitary and environmental conditions in Panama City, which will be implemented during the 2006-2015 period, at an estimated cost of €200 million (US$ 284 million). The Bank's loan is intended to part-finance the construction of the Balboa wastewater interceptor, as well as the Las Lajas and the East wastewater collectors. In addition, the Bank's loan comprises a technical assistance contract which will improve the efficiency of the water networks in the capital city through water demand management measures, thereby having a demonstration effect on other cities in Panama.
The loan is provided in the context of the EU co-operation policy with third countries. This is the fourth loan provided by the EIB in Panama. In 2004, the Bank part financed the Second Panama Canal bridge project (the “Centennial Bridge”), with a loan of €43 million to the Ministry of Finance and, in 1997 and 2000 respectively, it financed two network expansion projects of Cable & Wireless, for a total amount of €104m. (O.L.)