USAID support facilitates policy and legal reforms, best practices, and environmentally-sound approaches to watershed and protected areas management that promote biodiversity and the sustainability of water and other natural resource use in the long term, including operation of the Panama Canal.
-- Improved Management and Conservation of Critical Watersheds – aims at consolidating improvements in environmental management, land use and conservation through policy and legal reforms, changed resource use behavior and a participatory, practical approach to resource management in the Panama Canal Watershed and protected areas. The program supports improved protected area management and environmentally-sound economic activities, including improved environmental governance.
The Panama Canal Watershed is our mission’s flagship.
Legally, the Panama Canal Watershed (PCW) measures 552,761 hectares. The PCW provides over 95% of the raw water needed to meet water demanded in the most populated areas of Panama. Ships transiting the Panama Canal use most of the water (58%) supplied by the PCW. The remainder is used in the generation of electricity (36%) and human consumption (6%). Currently, forest cover in the PCW accounts for only 40% of the area, which is rich in biodiversity, and necessary for the supply of potable water and the efficient operation of the Panama Canal
In FY 2005, USAID support raised the bar for environmental stewardship. The USAID watershed program led to major policy reforms and adoption, institutional strengthening, best practices in natural resource management for conservation of biodiversity, improved farm incomes, local stakeholder participation, and empowerment in strategic sub-watersheds in the Panama Canal Watershed and protected areas. To contribute to achieving U.S. national and strategic interests, USAID continued to solidify its cooperation with the Panama Canal Authority on managing the Canal watershed, and promoted integrated management in the Panama Canal Watershed in impoverished areas. Proceeds from two debt-for-nature swaps under the Tropical Forest Conservation Act complemented USAID resources in the conservation of biodiversity in two key protected areas. Also, the physical facilities of the Peregrine Fund continued to support breeding of harpy eagles which is helping to prevent the extinction of the National Bird, while promoting conservation of their tropical forest habitat and the biodiversity it supports.
-- Trade and Investment – seeks to help Panama prepare for, and later implement, a free trade agreement with the U.S. in order for it to reap the benefits of trade development in a global market. To this end, USAID’s supports demand-led activities that enhance business development and provide business linkage support in key sectors with high potential to compete in the global economy.
In FY 2005, USAID support helped forge public-private partnerships to analyze constraints and identify opportunities for increasing rural and global competitiveness. Support for trade competitiveness is helping to prepare Panama to implement the anticipated bilateral free trade agreement with the United States, and identify sectors that show promise for new investments and employment creation.
Partners/Counterparts:
Panama Canal Authority
Interinstitutional Commission for the Panama Canal Watershed
National Environmental Authority
Ministry of Agricultural Development
Agriculture Development Bank
Ministry of Commerce and Industry
Panamanian Chamber of Commerce, Industry and Agriculture