Announcement of World Bank Assists Municipal Development Project in Nicaragua on January 14, 1982

. . .. FOR IMMEDIATE . RELEASE . .world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 82/41 Contact: Ciro Gamarra 'January 14, 1982 (202) 477-8034 WORLD BANK ASSISTS MUNICIPAL DEVELOPMENT PROJECT IN NICARAGUA Managua's basic infrastructure and municipal services will be improved with the assistance of a World Bank loan of $16 million to Nicaragua. The municipal development project assisted ~y the Bank will mainly benefit about 220,000 peop 1e in 26 1ow-income ne i ghbcffhoods in the country's capita 1 • With a total cost of $22.8 million, the project will primarily assist Managua's municipality, the Municipal Reconstruction Board, to provide basic improvements and storm drainage protection for low-income ne.ighborhoods and for bus routes. It will also include basic street paving, walkways, and lighting in the areas of ~ost intensive traffic in the low-income neighborhoods. The program to improve municipal services and other facilities in Managua will be the first phase of a plan that will eventually upgrade over 50 neighborhoods in the city to this basic level of infrastructure and municipal ·services. The plan will directly benefit about 65% of the urban population, including about 45% of the city's poor. It will also have a major impact on the economic efficiency of the entire city, the most important productive center of the country. The project will also assiststhe Secretariat of Municipal Affairs to implement a parallel pilot program in 15 municipalities in the country's main areas of production. The SecretarJat was created to foster more balanced mun1cipal development and to direct investments to municipalities that traditionally have been neglected. Technical assistance to strengthen the effectiveness of the Municipal Reconstruction Board and the Secretariat of Municipal Affairs will also be provided under the project. The $16 million Bank loan to the Republic of Nicaragua has a term of 20 years, including 5 years of grace. It has an interest rate of 11.6% per annum. ;. NOTE: All money figures are expr~ssed in U.S. dollar equivalents.  T E C" H N CA L DA T A ., PROJECT: COUNTRY: TOTAL COST: Municipal Development Nicaragua -$22. 8 mi 11 ion • BANK Fl NANCI NG: $16 milllon for a term of 20 years, including 5 years of grace,with interest at 11.6% per annum OTHER FINANCING: Gove~nment of Nicaragua, $800,000; Managua Municipal Reconstruction,Board (JRM), $5.7 millfon; and Secretariat foi Municipal Affairs (SAMU) and partici- pa~ing m~nicipalities, $300,000a . IMPLEMENTING ORGANIZATION: 1) Junta de Reconstrucci6n de Managua (JRM) Managua, Nicaragua Secretarfa de Asuntos Municipales (SAMU) 2) Managua, Nicaragua PROJECT DESCRIPTION: The project wi~l: (a) assist the Managua Munitipal Reconstruction Board (JRM) to upgrade and protect from flood and storm damage 26 low-income neighborhoods in the city of Managua, • improving at the same time the basic transport infrastructure .in thos~ neighborhoods; (b) assist the Secr~tariat of Municipal Affairs (SAMU) to implement a parallel pilot program, including protection of basic transport infrastructure in 15 municipalities in the country's main areas of production; and (c) provide technical assistance to strengthen the effectiveness, institutional framework and management capacity of JRM and SAMU. PROCU.REMENT: JRM wi 11 carry out the works financed under the 1oan through the use of its own departmental forces (force account). The neighborhood improvements wi 11 be carried out using the same methods (low/intermediate technology), materials, and labor used successfully in the recon- struction effort and JRM's current neighborhood improvements program. Tendering with local competitive bidding will be used in the implementation of the 34 sub- projects in 15 municipalities, under the supervision of SAMU. Where there are two or more buildings per municipality, bid packages will be prepared. Some of the municipal improvements of the SAMU component could be carried out under force account. To the extent possible, the streets, storm drainage, and bridge work wi 11 be proposed for appropriate competitive bidding on a case-by-case basis. Street improvements will b~ by local competitive bidding under procedures acceptable to the Bank. ' CONSULTANTS: About 330 man-months of local and foreign technical assistance and training for JRM and SAMU will be provided. ECONOMIC RATE OF REiURN: ESTIMATED COMPLETION DATE: 17% for the Managua municipal infrastructure upgrading component. 1984 - 0 - •