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Summary of report and Interview with Clemente Martinez, Centro Humboldt Nicaragua is one of many countries around the world that is facing water pollution, floods, and droughts related to environmental degradation and pressures from the international financial institutions to raise consumer fees for water and privatize their water services. For many families in Nicaragua, particularly in the countryside, accessing safe water can be a difficult daily challenge. The challenge becomes even greater during the dry season. About a third of the population in Nicaragua does not have potable water. In rural areas, the number of people without potable water is much higher, about 72 percent. Many households in rural areas are dependent upon shallow hand-dug wells or natural springs and rivers, streams and lakes. However, many of the rivers, streams, and lakes are polluted with pesticides, residential sewerage and industrial waste and toxins. Sewerage coverage is very limited, serving only 800,000 inhabitants (34 percent of the urban population) and the condition of many sewerage collection systems has deteriorated. The lack of sewerage treatment causes a grave public health problem. In urban areas, most people (about 93 percent) have piped water. However, some of these connections, particularly in the marginal settlements, are informal or unauthorized and may only provide an intermittent supply of water. In a few urban areas, particularly during the dry season, the shortage of water requires shutting off the service for large portions of each day. In these cases, primarily in the central region of the country, the water utility, ENACAL, must transport water by tanker truck from other parts of the country. In Jinotega, for example, water scarcity is a serious problem during the dry season and supplies may be turned on for only an hour each day while other parts of the city may be supplied for 10-20 hours daily. Only 50 percent of the city residents have potable water. Environmental degradation, particularly deforestation, the use of pesticides, and the lack of sewerage treatment have increased the complexity and severity of the water problem in Nicaragua. The principal water sources that provide for agricultural, domestic and industrial uses are located in the Pacific region of the country. The Pacific region is also an agricultural center and the use of chemical fertilizers and pesticides in the areas of large coffee, cotton, tobacco, and banana production has caused contamination especially by organo-clorides in many of the major rivers. In the areas around the banana plantations, the situation is most severe and the Health Ministry reports numerous cases of renal damage. The fifteen major rivers in the Pacific region are contaminated with untreated residential waste and industrial waste from food processing, cattle slaughterhouses, chicken farms, tanneries, mining and oil refineries. There is also contamination of the major aquifers in the region where saline intrusion has been documented and high concentrations of nitrates and sulfides affect the quality of the drinking water. Rather than addressing the root causes of water contamination, scarcity and unequal access to potable water and sewerage services, the international financial institutions (such as the International Monetary Fund, the World Bank and the Inter-American Development Bank) and bilateral donors have concluded that Nicaragua is too poor to provide publicly-owned and subsidized water services. New investments in the water utilities require implementation by the Nicaraguan government of the model of privatization and increased cost recovery (higher consumer fees). The water privatization process began in the municipalities of Matagalpa and Jinotega. In both cities, there are now new private water utility businesses owned by individuals who were previously high-level bureaucrats in ENACAL. The private businesses are accountable to a Board of Directors that includes representation from ENACAL, the mayors of the major municipalities in the two departments, and a representative from civil society. Following the privatization and new infrastructure investment in Matagalpa and Jinotega, the price of water in the two cities has increased at a more rapid rate than in the rest of Nicaragua. And, it is clear that the new investment in rehabilitation will continue to raise fees even higher. For those who can afford the "market price" of water, there will be improved and expanded services. But for the rest of the population, the situation could become even more grave. Privatization is planned next for the cities of Leon and Chinandega. The Inter-American Development Bank (IADB) promises an investment of $14 billion if the government of Nicaragua will negotiate contracts with an international water company to provide specific upgrading services to ENACAL in Managua and to fully manage the water utilities in Leon and Chinandega. The companies interested in bidding include some of the largest international water companies such as Saur, Lyonnaise des Eaux, and Generale des Eaux. In June 2001, responding, in part, to pressures form the IMF, the water utility regulatory agency (INAA, Instituto Nicaraguense de Acueductos y Alcantarillado) approved a new tariff structure for Nicaragua that required a 30 percent increase in the price of water for residential consumers, affecting the majority of the population. Such a substantial price increase for a basic human need like water caused a large peaceful protest in the country. The protest was coordinated by a broad range of organizations including human rights groups, consumer rights organizations, women’s groups and unions. The organizations also took formal legal actions presenting claims before the National Assembly, the Controller’s Office, and the Supreme Court. The legal claim argued that the tariff increase violated procedures that required 30 days prior notification for such increases and violated requirements that the tariff structure remain fixed for five year periods. The legal action also argued that the large water tariff increase violated the right to a basic service that was essential for life and good health, and represented an abuse of the principle of public service that should ensure the user of a reasonable tariff reflecting the quality and quantity of the service. To date, ENACAL and INAA have refused to respond to the legal claims. Get Connected... Centro Alexander Von Humboldt |
