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Water for Nicaraguans or Business for the Multinational Corporations?

Anxiety in Nicaraguan society about the process of the privatization of water is growing. Ever since the government of Nicaragua formulated the “Poverty Reduction and Renewed Economic Growth Strategy” in August of 2000, responding to the demands of the IMF, the World Bank and the Inter-American Development Bank (IADB), the so-called structural reforms in the public sector have promoted the privatization of public services.

In order to begin fulfilling these objectives, the IADB has required Nicaragua to prepare a five-year operation and management contract to privatize public water companies in Leon and Chinandega.  The process will be implemented by Empresa Nicaragűense de Acueductos y Alcantarillado Sanitarios (ENACAL) through an international bidding process with multinational water companies on the internet.  This process takes place on the backs of the Nicaraguan people.

We understand, based on international experience (such as Cochabamba, Bolivia) that this is the first phase of privatization, but we are not aware of the proposed terms of the contract.  We have denounced this lack of transparency and the intentions of the government and warned the Nicaraguan population of the proposal.

The Humboldt Center has taken this information to the people and informed them of what is happening and what will happen with our water and promoted dialogue, opinions and proposals about what we should do with our water and with the administration of ENACAL.  We have also stated our opinion on the matter of privatization at meetings, workshops, forums, panels, and radio programs and we have accompanied popular mobilizations in cities such as Leon, Chinandega, Matagalpa, Jinotega, Esteli and Managua.

We have supported and joined the formation of various fronts of struggle and resistance such as the formation of the Network in Defense of the Consumers and we have joined the Coalition of Social and Popular Struggle where social, environmental, labor and popular organizations come together.  This is where we joined forces to express our immediate rejection in the form of picket lines in front of the National Legislative Assembly demanding that our representatives (deputies) pass the Law to Suspend Concessions for the Use of Water.  This law was unanimously approved by the 92 deputies on August 22, 2002.  This required the suspension of the privatization of the hydroelectric plants and the suspension of concessions for the privatization of potable water by ENACAL until the National Assembly discusses with a broad sector of civil society and passes a General Law on Water with a national consensus and where the spirit of the law protects the rights of small farmers, rice producers, fisherman, industry, the indigenous community and the population in general to sufficient quantity and quality of water for consumption.

The Law to Suspend Concessions for the Use of Water was vetoed by President Bolaños.  The challenge for civil society will be to convince the deputies of the risks, dangers and social and environmental impact to vulnerable populations and our natural resources of the privatization of water so that they do not approve the veto.  In order to convince them to overturn the veto we must undertake a massive mobilization of the Nicaraguan population to place pressure on the deputies and on government officials to make it clear that we say NO TO THE PRIVATIZATION OF WATER.

As the Coalition of Social and Popular Struggle we propose a massive information campaign to promote debate at all levels of society and build awareness among the population of the goals and strategies of the multinational water companies to earn profits through the regional and global free trade areas, the Plan Puebla Panama, the Central American Free Trade Area and other plans pushed by the international financial institutions and the global corporations.  We are conscious that the next wars will be for the control of water.

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