World Bank approves $150 million loan to Panama for green development

A participant stands near a logo of World Bank at the International Monetary Fund - World Bank Annual Meeting 2018 in Nusa Dua

(Reuters) -The World Bank has approved a $150 million loan to support sustainable growth and climate resilience in Panama, the lender said in a statement on Thursday.

The Development Policy Loan (DPL) represents the first of two operations in the Central American country, it added, which are designed to support the energy transition, socially-inclusive growth and sustain capital for resilient growth.

Policy reforms implemented under the program should generate results by 2025, the lender said, adding that this should improve access to energy and internet in remote regions and help control deforestation of the country's mangroves.

The project is also expected to help Panama decarbonize its land transportation, protect its ocean, conserve forests and implement more energy efficient policies, it said.

"This financial operation will enhance Panama's efforts in establishing the policy foundations to foster the country's sustainable economic growth, low emissions and resilience to climate change," Panama's economy and finance minister, Hector Alexander, said in the statement.

(Reporting by Sarah Morland; Editing by Anthony Esposito and Brendan O'Boyle)