CABEI finances drinking water and sanitation works around Lake Managua to benefit over 1.4 million inhabitants

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• The US$151.4 million loan will impact the municipalities of Managua, Tipitapa and Ciudad Sandino, and will contribute to the recovery of Lake Managua.

Tegucigalpa, June 29, 2021.- A total of 430,396 inhabitants of the cities of Managua, Tipitapa and Ciudad Sandino will improve their quality of life through access to potable water and proper wastewater management as part of the "Lake Managua South Shore Sanitation Program," approved by the Central American Bank for Economic Integration (CABEI) for US$151.4 million.

By 2033, it is projected that the benefits of this program will reach a total of 1,459,976 inhabitants, equivalent to 79% of the population of these three cities. In the case of Tipitapa, a drinking water project is also contemplated that will impact 50,234 people to reach a coverage of 100% of the population in 2033, projected at 111,807 inhabitants, in addition, 944 temporary jobs will be generated during the execution of the Program, while 57 permanent jobs will be generated during operation.

"Water is life, and without it, countries cannot achieve sustainable development. We know that support for water, sanitation and sewerage projects in our region translates into health, productivity and employment, as well as environmental sustainability, which in turn generates well-being for citizens," commented CABEI Executive President Dr. Dante Mossi.

In Managua, Ciudad Sandino and Tipitapa, the sanitation systems will be expanded through the construction of 3 wastewater treatment plants, 253.56 kilometers of collectors, wastewater collection and sanitary sewerage networks, as well as 18,716 household connections.

In Tipitapa, the projects related to accessible drinking water include the construction of 2 storage tanks, 13 wells and wastewater pumping stations, 79 kilometers of conduction and distribution networks, and 3,994 household connections.

CABEI financing will be for a 20-year term, with a 5-year grace period, at an indicative interest rate of 6-month Libor plus 215 basis points and will consist of two tranches, the first financed with CABEI funds and the second with resources from the Development Bank of the Federal Republic of Germany (KfW).

Integral management of water resources and pollution are part of the Bank's priority agenda, being a key sector of its 2020-2024 Environmental and Social Strategy, which operationalizes the axis of this topic in its current Institutional Strategy.