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IDB approves $5,670,000 to improve basic services in Municipality of Managua, Nicaragua

The Inter-American Development Bank today announced the approval of an $5,670,000 soft loan to Nicaragua to strengthen institutional capacity and improve basic services of the municipality of Managua.

The resources will assist the city in increasing administrative efficiency through improvements in strategic planning, tax administration, financial planning, and implementation of a General Information System Plan. Technical assistance will strengthen municipal district offices and improve their capacity to interact with the public. The Department of the Environment will be strengthened, and an environmental education campaign carried out.

In addition, this operation will sponsor the modernization of basic urban services. In particular, the loan will finance three pilot projects for upgrading poor neighborhoods, containing a package of improvements in roads, drainage, water, and sewerage and a package of social and environmental programs to strengthen community participation. The local population will take an active role in implementing these projects. Other pilot projects for solid waste collection will be carried out in poor neighborhoods through service contracts with microenterprises and, in one district of the city, through a concession to a private company.

The total cost of the program, to be executed by the Municipality of Managua,* is $6,300,000. Local counterpart funds total $630,000.

The IDB loan from the Fund for Special Operations is for a 40-year term, with a 10-year grace period, with a 1 percent annual interest rate during the grace period and a 2 percent rate thereafter.

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