Panama's national water and sewerage authority Idaan is working with IDB on an evaluation of the country's potable water and sanitation sector, which will lay the groundwork for an all-encompassing modernization, Idaan deputy director Ámbar Pinzón told BNamericas.
"The bank has determined the sector lacks clear policies and strategies to carry out a much-needed modernization program, considering the challenges facing the country," Pinzón said.
"Coverage has seen minimum expansion and service quality has to improve. We need to clear up policies to subsidize poor communities. There are no clear criteria for setting tariffs. And currently, each entity carries out little projects with a five-year timeframe at the most," Pinzón said, citing some of the areas Idaan needs to improve.
"We need to harmonize the actions of all three entities in the long-term. We need a complete revision and a long-term vision," she added.
Panama's water sector is composed of national environment authority Anam, which acts as the governing entity, Idaan - which acts as a service provider - and public services regulator Asep.
The IDB study includes an analysis of the strengths and weaknesses of the three entities. Also, the entity identified opportunities to participate as a strategic financing partner, Pinzón added.
"The next step is to start correcting weaknesses, while outlining financing opportunities for the bank with more clarity," she said. "This diagnosis should take us to the point where we are able to design and consolidate a plan that includes all the relevant sector participants."
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