Facing the reality of recurring droughts restricting passage of vessels through the Panama Canal, the Government is considering the Rio Indio dam project to supply a regular flow of water. It is projected that the additional flow from the dam would support year-round passage of 14,000 Panamax and Super Panamax vessels each year.  The canal provides 3.1 percent of the gross domestic product of Panama and is responsible for passage of 2.5 percent of world marine traffic.

Impediments to implementation of the project will include displacement of up to 2,500 residents of farmland and villages that would be inundated. This has generated both social and legal opposition to the project.  The proposed dam to be erected by the Panama Canal Authority would be almost ¾ of a mile in length and over 250 feet high.  The waterflow from the dam would allow up to 15 vessels to pass through the various locks in the canal each during the dry season.