Announcement of Six Million Nine Hundred Thousand US Dollars Loan for Expansion of Water Supply System in Managua, Nicaragua on March 9, 1972

1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE-: EXECUTIVE 3-6360 Bank Press Release No.72/10 Subject: $6.9 million loan for expansion March 9, 19 72 of water supply system in Managua, Nicaragua The World Bank has made a loan of $6 .9 million equivalent to help finance the expansion of the water supply system of Managua, the capital city of Nicaragua. The project is the se,.:ond stage of a long-term program started in 1963 with assistance of a $3.0 million credit of the International Development Association (IDA), a !neni>er of the World Bank Group. The project is expected to meet Managua's need over the next decade. Demand for water in the city is expected to continue growing at about 8% per year. The city's population growth, estimated at s·ome 6% annually, the increase in the population served, and projected increase in per capita consumption, account for the need of a larger water supply. • The project envisages the construction of eight wells, expansion of transmission, distribution, pumping and storage facilities and other works and services. The cost of the project has been estimated at $10.0 million equivalent. Empresa Aguadora de Managua, an autonomous public enterprise, wi:1.1 be the borrower and will execute the project. Procurement will be subject to inter- national competitive bidding with a margin of preference of 15% of the CIF cost or 50% of the customs duty, whichever is lower, for Nicaraguan suppliers and suppliers from other Central American Common Market member countries. The project would have no adverse affect on the environment. The National Water and Sewerage Department {Departmento Nacional de Acueductos y Alcantarillado), an agency of the Ministry of Health operating the sewerage systems in Nicaragua, has started in 1972 construction of an expansion of Managua's sewerage system. This project will r1rovide for adequate sewerage disposal, including the additions resulting from the Bank-supported water supply project. Appropriate measures are under consideration to protect the Empresa's water resources against possible contamination. The Bank loan will have the guarantee of the Republic of Nicaragua and • will be for a term of 24 years, including a~ year grace period, at 7~% interest per year. Bank of America, New York, is participating in the Bank loan in the amount of $100,000. - 0 -  March 9 , 19 72 • TECHNICAL DATA PROJECT: Water Supply - II COUNTRY: Nicaragua TOTAL COST: $10.0 million BANK FINANCING: $6.9 million loan, 24 years, ~ years of grace, 7~% interest. OTHER FINANCING: Internal cash generation. IMPLEMENTING ORGAIUZATION: Empresa Aguadora de Managua, Apartado Postal 3599, Managua, D.N. Telephone: 2-6811. PROJECT DESCRIPTION~ Construction of water wells to increase water avail- ability from an average of 21 to 35 million gallons per day (net of stand-by capacity)~ doubling, &~proximately, the capacity of the transmission network; expanding the distribution network by about 15%; • provide a new administration building to improve office staff efficiency and customer service. PROCUREMENT: (Bank financed). Equipment for water wells with an aggregate yield of about 17 million gallons per day; equipment for booster pumping stations with a combined capacity of about 56 million gallons per day; about 37 miles of 12-36" diameter transmission mains; about 28 miles of 2-8" diameter distribution pipelines; meters for installation of about 9,400 service connections; mobile construction equipment for water system maintenance and expansion; and management and engineering consultants services (already committed for). International competitive bidding. Suppliers in the Central American Conuoon Market will be allowed a preference of 15% of the CIF cost or 50% of the customs duty, whichever is lower. CONSULTANTS: Joint venture of Hazen and Sawyer (USA) and J. Agustin Chan (Nicaragua) 1 for ~ngineering services. Pan American Health Organization for management consulting services. ESTIMATED COMPLETION DATE: December 19 74. - 0 - •