Germany approves loan for major water project in Nicaragua

The German government has agreed to provide 90mn euros (US$104.7mn) in financing for Managua Metropolitana. The initiative seeks to improve potable water supply and sewerage services in the Nicaraguan capital, Ciudad Sandino, and Tipitapa, both located in the metropolitan area.

Vice-president and first lady Rosario Murillo said during her daily news roundup that Ute König, the German ambassador to Nicaragua, personally confirmed her government's decision to provide the financing.

The funds will come from the German Development Bank (KfW) and be provided through the Central American Bank for Economic Integration (Cabei).

Managua Metropolitana also entails connecting the sewerage system of the three cities to the Augusto C. Sandino wastewater treatment plant, a facility completed in 2009 with funds from the state-owned German bank. The plant's daily treatment capacity would then expand from 182,000 to 240,000m3.

The project is expected to benefit 250,000 area residents and works could begin by mid-2018, Nicaraguan authorities previously stated.

Last month, a delegation from the KfW visited Nicaragua to meet with officials from state water and sewage utility Enacal to define potential cooperation mechanisms and agreements to finance this project.