THE AGREEMENT reached between the Panama  government and indigenous leaders on the Barro Blanco hydroelectric project has received accolades  from  the United Nations.

"The agreement is historical not only for Panama, but also for the international community," said UN officials based in Panama.

"It is an example of how states should make indigenous peoples partners in decision-making processes on projects that affect their lives, their cultures, their territories and their rights."

The agreement calls for the company Generadora del Istmo, S.A. (Genisa) to be removed from the hydroelectric project and for it to be operated by an independent third party.

It also cancels proposed projects along the Tabasará River, and makes them subject to a referendum.

The agreement also creates a fund for projects within the community that will derive its income from the sale of power from the project.

In addition  50 percent of the jobs created by the project will be granted to indigenous residents.