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New IDAAN chief faces deep service gaps, weak execution and aging infrastructure

What Happened

Antonio Tercero González is set to take charge of the Instituto de Acueductos y Alcantarillados Nacionales (IDAAN), the state agency responsible for water and sewer service across Panama. His confirmation by the National Assembly is expected in the coming days, placing him at the center of one of the country’s most difficult public service challenges.

Tercero arrives from the Consejo Nacional para el Desarrollo Sostenible (Conades), where he worked with a staff of about 400 and a budget of roughly $21 million. IDAAN operates on a very different scale, with nearly 3,000 employees and a budget of $358 million, including $155 million for operations and $203 million for investment.

A Larger and More Demanding Institution

The shift from Conades to IDAAN is more than a change in numbers. IDAAN’s decisions affect daily life in homes, businesses and schools across the country, and any disruption in service has immediate consequences. The agency must respond to operational breakdowns while also planning for long-term expansion and modernization.

That responsibility comes at a moment when public confidence in the institution remains under pressure. In 2025, the final year of the previous administration, IDAAN had $247.4 million for investment but executed only $66.5 million, or 26.9%, according to figures from the Ministry of Economy and Finance. That level of execution placed the agency among the weakest performers in the public sector.

Water Service Pressures Across Panama

The new director inherits a system weighed down by chronic shortages, uneven coverage and infrastructure problems. In parts of the country, especially during the dry season, residents can go days with low pressure or no water at all. The strain is especially visible in densely populated areas such as Panama Este and San Miguelito, where demand often exceeds storage and distribution capacity.

Water losses in the network remain another persistent problem. Leaks, deteriorated pipes and underground failures mean that treated water is lost before reaching households. That weakens service and increases the pressure on a system already struggling to keep up with demand.

Infrastructure and Expansion Challenges

IDAAN also faces an aging infrastructure network. Plants such as Chilibre, which supplies the metropolitan area, continue operating with equipment that has exceeded its useful life. Constant repairs have become part of routine operations, but they do not solve the underlying need for modernization.

The challenge extends beyond maintenance. Communities in Panama Oeste, Darién and other rural areas still rely on tanker trucks or temporary solutions, underscoring the gap between formal coverage and reality on the ground. In Panama Oeste, especially in Arraiján and La Chorrera, the lack of continuous service has become a structural problem tied to rapid growth and insufficient infrastructure.

What Comes Next

Tercero has described IDAAN as the country’s most sensitive institution, a recognition of the political and social weight that comes with the post. His success will depend not only on managing day-to-day emergencies, but also on improving execution, accelerating investment and restoring confidence in the agency’s ability to deliver a basic public service.

The scale of the task is clear: a larger budget, more employees and greater national exposure come with far greater expectations. For IDAAN, the coming months will test whether new leadership can turn plans into visible results for thousands of communities that depend on reliable water every day.

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