Wastewater treatment program in Central America

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The aim of the Financial Cooperation module is to provide economically efficient and environmentally friendly water and sanitation services in selected municipalities in Nicaragua (Managua, Ciudad Sandino, Tipitapa) to protect Lake Managua. The aim of the measures is also to increase the efficiency of the system to reduce high water losses in order to conserve water resources that are becoming increasingly scarce as a result of climate change. The direct target group is the current and future population in the program area, who will benefit directly from the measures to improve water and sanitation services (planning horizon 2033). This includes around 112,000 people whose living conditions will improve thanks to a reliable and hygienically sound drinking water supply, and 666,000 people who will benefit from the positive environmental and health effects of wastewater disposal and treatment that conserves resources and is safe for settlements. The national programme sponsor is the Nicaraguan water company ENACAL (Empresa Nicaragüense de Acueductos y Alcantarillados Sanitarios). The borrower of the low-interest loan under the regional FC is the Central American Bank for Economic Integration (BCIE). The total cost of the project was estimated at USD 185.6 million (EUR 156 million). The costs are to be financed from bilateral FC funds (FC loan of EUR 18 million), regional funds to BCIE (FC development loan of USD 106.2 million, equivalent to EUR 90 million in USD), own funds from the Nicaraguan government (USD 10 million) and ENACAL (USD 2.8 million) as well as with a further loan from BCIE with its own loan funds (USD 44.3 million).