Announcement of Nearly Half a Million People to Benefit from Water Supply and Rural Sanitation Projects in Nicaragua on December 1, 1977

(• World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/24 DECEMBER 1, 1977 NEARLY HALF A MILLION PEOPLE TO BENEFIT FROM WATER SUPPLY AND RURAL SANITATION PROJECTS IN NICARAGUA Some 465,000 people; mostly urban and rural poor, will benefit from a water supply project and a rural sanitation project in Nicaragua $Upported by two World Bank loans for a total of $13. l million. The first loan, for the amount of $10. l mil lion, wil 1 help finance the Managua Water Supply I I I Project, aimed at providing the potable water capacity and most of the house connections to serve 215,000 people in Nicaragua's capital. A second loan, of $3 mi 11 ion, wi 11 support a Rural Sanitation Project expected ultimately to benefit around 250,000 people in about 550 dispersed villages of the country. • The serious problems still existing in Nicaragua 1 s health conditions are , evidenced by high infant mortality rate (146 per thousand births), high p~rcentage of deaths among young children caused by enter1t1s and other diarrheal diseases (37 percent) and low life expectancy (52 years). Of the rural population, only 14 percent had access to potable water and only 24 percent had access to latrines by 1975. Of the urban population~ 72 percent had house connections for water and 38 percent for sewerage; another 38 percent were served by latrines. Although the availability of water and sewerage services in urban areas ranks average in comparison to other Latin American countries, services in rural areas are among the lowest, with only five countries in the Hemisphere having inferior s e rv i ce 1eve l s. Managua Water Supply I I I The project is expected to provide potable water requirements for the population of Managua up to 1985, expand production, transmission and distribution facilities and provide most of the house connections to serve 215,000 additional persons. Over half of the beneficiaries will be urban poor, earning less than one-third of the national average per capita income of around $750. • • • I • NOTE: Money figures are expressed in U.S. dollar equivalents.  -2- Although 90 percent of the population is currently served by house connections for water, Managua is growing rapidly and without this project the percentage of population thus served would decrease to 60 percent by 1985. The project aims to increase the proportion of population served to 96 percent by 1982; .~ Th~ water supply project comprises the construction and equipment of six deep wells, construction of four water tanks, installation of distribution mains and 20,000 house connections, acquisition of pumping equipment and a new computer, and consulting services. The $10. l mi 11 ion loan to Empresa Aguadora de Managua (EAM), with the guarantee of the Republic of Nicaragua, wi 11 have a term of 17 years, including 4 years of grace, with interest at 7.9 percent per annum. Rural Sanitation The $3 million loan represents the first Bank involvement in a project designed to provide basic sanitation and health-related services exclusively to the lowest income rural population living in smal 1 villages (median population 75 inhabitants) The population to be reached is among the poorest in Nicaragua, with annual per capita incomes below $150. The project seeks to improve basic sanitation service to rural areas by providing an integrated program of water supply, latrines, sanitary house improvements, health education, and immunization of about 72,000 children a~ainst measles, polio and other diseases. About 172,000 people of some 550 dispersed rural communities in three of the country's eight regions wi 11 benefit initially from the project. It is estimated that by 1988 the population served would have grown to about 250,000 people, or 41 percent of the rural population in these areas. • The loan to the Republic of Nicaragua has a term of 17 years, including 4 years of grace, with interest at 7.9 percent per annum. - 0 - •  ·~ RM'~O. 1121 J5-76) T E C HN I CA L D A T A PROJECT: Managua Water Supply I I I COUNTRY: Nicaragua TOTAL COST: $ l 3 . 8 mi l'l ion BANK FINANCING: $10.1 mill ion for a term of 17 years, including 4 years of grace, with interest at 7.9% per annum. OTHER FINANCING: Commercial loans: $1 .9 mill ion Internal Cash Generation: $3.2 million IMPLEMENTING ORGANIZATION: Empresa Aguadora de Managua (EAM) Apartado Postal 3599 Managua, D.N. Nicaragua, C.A. Cable: AGUADORA PROJECT DESCRIPTION: It comprises: (a) Construction and equipment of 6 deep wells with an aggregate capacity averaging 6 mill ion gallons per day;(b) ac- quisition of pumping equipment for two booster-pumping stations; and construction and equipment of 3 additional minor pumping stations; (c) constructions of 4 • water tanks; (d) installation of a total of 100.3 km. of distribution mains, including 14 km. in the downtown area of Managua; (e) replacement of malfunctioning valves and hy- drants, and elimination of 10,000 abandoned house connections; (f) installation of 20,000 house connections to provide domiciliary services to cover 96% of the population by 1982; (g) acquisition of a new computer; (h) technical assistance and personnel training; (i) studies to identify new water sources in Managua and to analyze the organizational arrange- ments for water and sewerage service in the city; and (j) consulting services. PROCUREMENT: All contracts will be awarded through international competitive bidding in accordance with Bank Guidelines, except that civil works contracts under $200,000 (other than for well construction) and contracts for pur- chase of equipment and materials under $25,000 -·· all up to an aggregate amount of $1,000,000 -- may be awarded on the basis of local competitive bidding procedure satis- factory to the Bank. Manufacturers from the Central American Common Market (CACM) in- cluding those in Nicaragua, will be allowed a preference of either 15% of the c. i .f. price, or 50% of the tariff payable by non-CACM manufacturers, whichever is lower. CONSULTANTS: Consulting services averaging 152-·man-months will be contracted by EAM, in accordance with procedures agreed with the Bank, to provide technical assistance in design, procurement and construction supervision of project works, preventive maintenance, pumping optimization, billing and inventory control, iden- tification of new water sources and analysis of the organizational arrangements for Mana- gua's water and sewerage services. The average cost of consultants is estimated at $5,100. per man-month . • ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 14% February 1981. - 0 -  ,.,. FORM NO. 1121 J (5-76) T EC HN I CAL DAT A -···========================== PROJECT: Rural Sariitation COUNTRY: Micaragua TOT-AL COST: $6 .. 3 million BANK FINANCING: $3 million for a term of 17 years, including 4 years of grace, with interest at 7.9% OTHER FINANCING: Government of Nicaragua: $ 1• 9 mi 11 i on Community contributions: $ 1• 4 mi 1 1 i on IMPLEMENTING ORGANIZATION: Plan Nacional de Saneamiento Ambiental Basico Rural (PLAN SAR) Ministerio de Salud Publica Managua, D.N. Cab le: Nicaragua, C.A. Plansar Minisalud PROJECT DESCRIPTION: The project components are: (a) Construction of basic water supply systems in approximately 550 villages, estimated to include, subject to the least cost technical solution for each village selected, 135 drilled \vells, 300 dug wells, 300 improved wells and 77 aqueducts; (b) im- provement, rehabilitation and addition of approximately 26,000 latrines; (c) improvement. of sanitary conditions in about 26,000 houses in project villages; (d) vaccines to immunize about 72,000 children in project villages against measles, polio and other diseases; (e) office and communications equipment, jeeps and trucks to be used i~ executing the project; (f). technical assistance consultants; and (g) educational, administrative and engineering personnel. PROCUREMENT: All contracts for materials are equipment with an estimated cost of $20,000 or more, or civil works contracts with an estimated cost of $100,000 or more, will be awarded through international competitive bidding in accordance with Bank Guidelines. Contracts for lower amounts may be awarded on the basis of competitive bidding in accordance with local procedures acceptable to the Bank, when the aggregate costs of these contracts for materials, equipment and civil works do not exceed $500,000. Suppliers from the Central American Common Market, including those in Nicaragua, will be allowed a preference of either 15% of the CIF price, or 50% of the import duties applicable to suppliers from non-member countries, whichever is lower. CONSULTANTS: A Project Technical Advisor to assist PLANSAR in bid preparation, tender analysis, implementation of low-cost technical solutions, promotion of community organization, assurance of adherence to e'ligibi lity and design criteria and administration of procurement and supply. The selection of this Advisor, With qualifications and conditions acceptable to the Bank, will be a condition of loan effectiveness. The project also includes technical assistance consultants acceptable to the Bank to make recommendations on PLANSAR's project cost control, programming and construction supervision. ESTIMATED COMPLETION DATE: December 31, 1981 - 0 - •