Announcement of Water Supply Project in Nicaragua to Receive World Bank Assistance on May 4, 1981

FOR IMMEDIATE RELEASE · eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/83 May 4, 1981 WATER SUPPLY PROJECT IN NICARAGUA TO RECEIVE WORLD BANK ASSISTANCE The World Bank will lend $3.7 million to Nicaragua to support improvement in the water supply system in the capital ity of Mana- gua, it was announced today. The loan wi 11 finance studies and the preparation of plans and contract documents for works necessary for the expansion and improve- ment of the entire system. In addition to repairs to existing meters and pumping station equipment, the project provides for studies of Managua's population • growth patternsand future water demand. Technical assistance will be supplied to help increase the efficiency of the Nicaraguan Water and Sewerage Institute, which plans, constructs, operates, and main- tains water supply and sewerage systems throughout Nicaragua. The Inter-American Development Bank is providing $130,000 towards the $5.06 million total cost of the project. The World Bank loan is for 20 years, including 5 years of grace, with interest at 9.6% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T E C HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Managua Water Supply Engineering Nicaragua $5.06 million • BANK FINANCING: $3.7 millio~ for 20 years, including 5 years of grace, with interest at 9.6% per annum OTHER FINANCING: Inter-American Development Bank, $130,000 INAA (lnstituto Nicaraguense de Acueductos y A1canta- ri11ados), $1.23 million IMPLEMENTING ORGANIZATION: Institute Nicaraguense de Acueductos y Alcantarillados Kilometer 5, Carretera Sur Managua, Nicaragua PROJECT DESCRIPTION: The project will help expand the water supp1y system in Managua and increase the efficiency of the Nicaraguan Water 2:td Sewerage Institute (INAA) through: (a) preparation of plans and contract documents for the construction of the Tisma water supply system, which will include about 37 wells, a pumping station, about 25 kilometers of transmission main, and water star. age; (b) preparation of a detailed water demand study for Managua; (c) development of a master distribution plan for Managua and identification of a first stage distribution improvement program to distribute the water from the Tisma scheme; (d) preparation of plans and contract documents for the construction of the first stage distribution improvements; (e) repair of production meters and of pumping and reservoir equipment; and (f) provision of technical assistance to help INAA integrate its two predecessor orga- nizations into a single entity and to complete a tariff study. PROCUREMENT: Spare parts wi11 be purchased under international competi- tive bidding procedures. Limited international tendering wi 11 be used for the purchase of special items available from either a sole or a 1 i mi ted number of supp 1i e rs and for orders under $50,000. . Supp 1 i ers from Nicaragua and other Central American Common Market countries wi 11 be granted a margin of preference of 15% or 50% of import duties, whichever is lower. CONSULTANTS: About 260 man-months of consulting services.wi 11 be re- quired, of which 80 man-months will be for local consultants . ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: n.a. 1985 - 0 - •