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President Hoyer and Vice President Alvarez announcing EIB support for new water investment to benefit 520,000 people across Nicaragua with Finance Minister Ivan Acosta ©EIB/To be defined

During the final stop of his recent visit to Central America, the first by an EIB President to the region, President Hoyer formally agreed a EUR 60m EIB loan for the PISASH Water Supply and Sanitation Programme with Minister of Finance Ivan Acosta. The water investment programme will increase coverage and continuity of water supply and improve sewerage and waste water treatment in 19 towns across Nicaragua. Many of these areas currently lack any waste water or collection infrastructure.

A visit to Nandaime, a town of 20,000 inhabitants south of Managua, allowed President Hoyer and Vice President Alvarez an opportunity to meet local inhabitants eager to benefit from improved water provision and waste water collection. The new EIB backed investment scheme will significantly improve both drinking water and sanitation and seeks to reach 100% coverage of drinking water supply, and ensure that a minimum of 50% of inhabitants will be connected to the sanitation network.

Specific investment will include the construction of two wells, two pumping stations, the installation of more than 16 km of new pipes for water distribution and construction of a storage tank, as well as connecting more than 1,200 household to the water network for the first time. Waste water improvements include construction of a water treatment plant and new sewerage connections for local household.

At an earlier meeting with the town’s mayor the EIB delegation heard at first hand the health risks and impact on infant mortality directly linked to lack of access to clean water and absence of adequate sewerage.

At present it is estimated that less than 39% of the population across Nicaragua is connected to waste water and sewerage treatment infrastructure. Other towns to benefit include Condega, El Rama, La Esperanza, Nueva Guinea and Rivas.

The PISASH programme is being financed by blending both EIB loans and EUR 50m of European Commission grant funding made available under the Latin America Investment Facility. 

The EIB will also fund technical assistance to support project implementation by the Nicaraguan national water company ENACAL.