**Panama Supreme Court Dismisses Challenge to Río Indio Reservoir Project**
PANAMA CITY, Panama – The Supreme Court of Justice has unanimously rejected a constitutional challenge aimed at halting the Panama Canal Authority’s (ACP) flagship Río Indio multipurpose reservoir project. The lawsuit, filed by a farmers’ collective, contested the project’s budgetary priority status, a critical step for its advancement.
The court’s decision, issued this week, prevents a legal delay for a key infrastructure initiative designed to secure water for the Panama Canal’s operations and surrounding communities. The ruling allows the ACP to continue its planning and investment processes for the reservoir, a central component of its Hydrological Projects Program.
Legal Challenge and Court’s Unanimous Ruling
The legal action was filed by the Sociedad Agraria de Transformación “Coordinadora Campesina por la Vida” (Peasant Coordinator for Life). The group sought to have Resolution No. ACP-JD-RM-25-1542, dated January 29 of this year, declared unconstitutional. This resolution formally designates the Río Indio project as a priority within the ACP’s investment budget.
The plaintiffs argued the resolution violated the constitution on six grounds, including environmental protections and human rights. They specifically cited a failure to adhere to the Escazú Agreement, an international treaty ratified by Panama in 2018 that safeguards environmental defenders. They also contended that the ACP acted as both “judge and party” in deciding the use of the Río Indio basin.
The high court, however, found the petition lacked sufficient legal grounds to proceed to a substantive review. The ruling, with Magistrate Mirian Cheng Rosas as the ponente, was voted in favor by all justices. The court determined the filing by the group’s lawyers, Santander Tristán and Benjamín Reyes, did not meet the threshold to initiate a full constitutional process.
“The filing by the judicial representatives of the Sociedad Agraria de Transformación ‘Coordinadora Campesina por la Vida’ did not provide grounds to initiate a process to address the merits of the case and decide on the unconstitutionality of said resolution,” the court stated in its ruling, as documented in Edict No. 1383.
Project Significance and Next Steps for the ACP
The dismissal of the lawsuit represents a significant legal victory for the ACP. The Río Indio reservoir is a cornerstone of the authority’s strategy to manage water resources sustainably. The ACP has consistently stated the project is essential for the “safe, continuous, efficient, and profitable operation” of the waterway.
The reservoir is intended to bolster the water supply for populations in the canal’s hydrographic basin while ensuring a reliable resource for the canal’s locks, which consume vast amounts of fresh water. With this legal hurdle cleared, the ACP is expected to move forward with subsequent phases, including the crucial environmental impact study.
According to previous ACP statements, the contract for the environmental impact assessment for the Río Indio reservoir could be awarded by March 2026. The project’s progression will continue to be monitored by environmental groups and local communities concerned about its potential impacts.
The Supreme Court‘s decision underscores the legal framework supporting major state-led infrastructure projects in Panama. It also highlights the challenges faced by civil society groups in using constitutional appeals to contest government approvals for large-scale developments.