The expanded and upgraded potable water treatment plant serving San Félix district in Chiriquí will benefit over 5,000 people.
Francisco Vega, governor of the Mexican state, said projects developed during his administration will ensure potable water supply will come from Mexican resources through 2050.
The project has been stalled due to issues related to prefeasibility studies.
An agreement was signed by ministers and state utilities.
The US$11mn project entails an 85km pipeline, a potable water plant and a water intake, among others.