Drinking water and sanitation in Nicaragua are provided by a national public utility in urban areas and water committees in rural areas. Despite relatively high levels of investment, access to drinking water in urban areas has barely kept up with population growth, access to urban sanitation has actually declined and service quality remains poor. However, a substantial increase in access to water supply and sanitation has been reached in rural areas.

The water sector underwent major reforms in 1998 that separated policy, regulatory, and operating functions. Decentralization has been proposed for a decade, but implementation was very slow and in mid-2007 was reversed when the national water company took over two municipal systems.

Access Urban (57% of the population) Rural (43% of the population) TotalWater Improved water source 98% 68% 85% Piped on Premises 89% 29% 63%Sanitation Improved sanitation 63% 37% 52%Sewerage (2006 JMP survey & census data) 22% 0% 13% Source: WHO/UNICEF Joint Monitoring Programme for Water Supply and Sanitation Joint Monitoring Programme for Water Supply and Sanitation (JMP) , Access Estimates for 2010.

Access to water supply and sanitation in urban areas of Nicaragua has been declining, since there has been little expansion in access while population levels have increased. Even though the JMP found coverage levels to be at 85% in 2010, the Nicaraguan Water and Sewerage Enterprise (ENACAL), the public utility responsible for provision of water and sanitation services to urban areas, estimates that effective coverage is less than 60 percent due to insufficient and unreliable service. There have been significant improvements in rural areas, however, since 1990. Access to improved water supply in rural areas has increased significantly from 54% in 1990 to 68% in 2010.

Access to improved sanitation in rural areas has increased from 43% in 1990 to 52% in 2010. According to the 2005 census, access to improved water supply in Nicaragua was 77% in 2005, which is lower than the JMP estimate of 83%. Access to improved sanitation was 85% according to the 2005 census which is higher than the JMP estimate of 50%. The difference can be largely explained by the fact that the JMP definition takes into account only improved latrines with a complete structure that are in service, while the census also counts abandoned or traditional latrines.

Service quality Water supply in 47% of localities monitored by the regulatory agency (46 out of 96 systems) is not continuous.Water and Sanitation Program, p. 10 WSP This share is higher in the dry season, between the months of February and May, than in the wet season. Poor quality and efficiency of water service are serious concerns in the Managua region. The existing water supply in Managua cannot meet current demand due to high rates of leakage and wastage, which account for 55% of total water produced and distributed by the system.“Plan de Desarrollo de Sistemas de Agua Potable y Alcantarillado Sanitario de la Ciudad de Managua 2008-2015.” ENACAL, Dirección de Planificación, Managua, 2008

Interruptions in service provision are common, with some households receiving service for less than 2 hours per day. Only 42 percent of connections in Managua have meters operating in good condition. Additionally, ENACAL, the national utility responsible for water provision in Managua, has been labelled as "one of the most notorious overbillers in the country".Doing Business in Nicaragua

Bacteriological urban drinking water quality was considered acceptable by the WHO based on samples analyzed by the national utility.

In 2005 CONAPAS estimated that 42% of all collected wastewater in the country was treated. At that moment there was no wastewater treatment system in the city of Managua. The 2005 Census reported that 63% of households have toilet systems which discharge into sewers in Managua, with 30% of the population using pit latrines in settlements, and the remainder using septic tanks managed by five private companies.“The Study on Improvement of Water Supply System in Managua in the Republic of Nicaragua.” Japan International Cooperation Agency (JICA), Empresa Nicaraguense de Acuductos y Alcantarillados Sanitarios (ENACAL), Nihon Suido Consultants Co., Ltd., Asia Air Survey Co., Ltd., March 2005

In 1996 a Sanitation Master Plan for the City of Managua was completed and later finalized in 2002. Based on this study, ENACAL is currently overseeing the construction of a water treatment plant and collection system, funded by the Inter-American Development Bank (IDB), the German Kreditanstalt fuer Wiederaufbau (KfW), and the Nordic Fund, which was completed by December, 2008. This new plant treats 67% of the sewage waters in Managua."Plan de Desarrollo de Sistemas de Agua Potable y Alcantarillado Sanitario de la Ciudad de Managua 2008-2015." ENACAL, Direccion de Planificacion, Managua, 2008

Water sources and uses

Nicaragua is a water-rich country with a water availability of 35,000 cubic meter/capita/year, corresponding to more than five times the average for Central America and the Caribbean. Less than 1% of these water resources is withdrawn for human use. The major water user is agriculture (84% of withdrawals), followed by domestic use (14%) and industry (2%).World Resources Institute: EarthTrends Country Profile-Nicaragua

Rainfall, while abundant, varies greatly. The Caribbean lowlands are the wettest section of Central America, receiving between 2,500 and 6,500 millimeters of rain annually. The western slopes of the central highlands and the Pacific lowlands receive considerably less annual rainfall. Mean annual precipitation for the rift valley and western slopes of the highlands ranges from 1,000 to 1,500 millimeters. Rainfall is seasonal—May through October is the rainy season, and December through April is the driest period.

Groundwater is the main source for municipal water supply in Nicaragua. For example, Managua - which is located on the shores of the polluted Lake Managua - is supplied entirely by groundwater, including by groundwater that infiltrates from the craters of volcanoes - called "lagoons'" within the city. For example, Asososca lagoon, to the west, is Managua's most important source of drinking water.

History and recent developments Under the Somoza government until 1979 the larger urban water systems were operated by the private sector, while a Ministerial department was in charge of water systems in smaller towns. After the revolution a centralized public national water company, the Instituto Nicaragüense de Acueductos y Alcantarillados (INAA), was created.

The reforms of 1998 After the electoral defeat of Daniel Ortega's first administration (1979–1990) the subsequent governments tried to decentralize service provision without much success. In 1998, under the administration of Arnoldo Alemán (1997–2002), the sector was reformed, but not decentralized. The reform consisted in the separation of policy, regulatory and service provision functions: CONAPAS was created to set policies; ENACAL was created to provide services, taking over most of the staff and assets of INAA; and a new regulatory agency was created that inherited the name INAA. World Health Organization 2000

Neither before the 1998 reform nor afterwards was there much change in the sector towards decentralization or the establishment of public-private partnerships. The financial self-sufficiency of ENACAL improved between 1998 and 2001, but there were public protests against the hardship imposed by higher tariffs.Public Citizen-Water for All, Not for Sale. Search term:CMEP Nicaragua Subsequently, tariffs were frozen during the administration of Enrique Bolaños (2002–2007), leading to a gradual deterioration of the utility's financial situation.

Service contract In 1999, ENACAL, with financial support from the IDB, accepted an international management contract with the goal of restructuring the sector to include private sector participation and transforming ENACAL into a publicly traded company. This project included provisions for decentralization, with private and local water management in the municipalities of León and Chinandega. Protests against privatization put a halt to these reforms and in 2003 the Nicaraguan Legislature passed Law 440 which included a moratorium on any water privatization. Soon after, the Nicaraguan Legislature also changed ENACAL's status from a “state-owned business” to a “state-owned public utility”.“Nicaragua Water Supply and Sanitation Investment Program Loan Proposal” Inter-American Development Bank, Report No. NI-L1017, 2006

Current administration The current administration of Daniel Ortega took office in November 2006. This administration does oppose private sector participation and has been critical of autonomous regulation. One option considered by the government is to establish a National Water Authority.

The current administration has supported a restructuring of the 1999 IDB project. In December 2006 ENACAL signed a five-year service contract which eliminates all private sector development, including the private contracts for the sector in Léon and Chinandega, and gives ENACAL an exclusive service contract for commercial services (meter reading, billing, customer service), supported by the IDB as part of the modernization of ENACAL.Interamerican Development Bank 2005 IDB The contract has been criticized by a consumer advocacy group which argues the agreement will make access to public water more costly to most Nicaraguans. Public Citizen

Sector strategy In October 2005 CONAPAS approved a sector strategy that aims - again - at decentralization, financial self-sufficiency and strengthening of the regulator. In addition, it calls for the development of a sustainable operational model for rural areas.

In January 2007 CONAPAS launched a 10-year comprehensive water and sanitation plan. It foresees investments of US$592m and will focus on rural areas using the Social Fund FISE as an implementing agency.International Reference Center (IRC) 2007

A new Water Law was passed in November 2007 which gives ENACAL responsibility for supervision and control of service provision in rural areas.GoN-Normas Jurídicas de Nicaragua Although the law's implication for institutional responsibilities is not yet clear, a strategy for the entire sector is under preparation by ENACAL—rather than CONAPAS—and should shed some light on the institutional roles in the sector.

Responsibility for water supply and sanitation

The responsibilities in the water and sanitation sector in Nicaragua are defined in

the General Drinking Water and Sewerage Services Law, Law No. 297 of 1998 the Law-Decree No. 276 of 1998 that created ENACAL, and Law No. 275 of 1998 that transformed INAA into a regulatory agency.

A General Water Law (Ley General de Aguas Nacionales), which is focused on water resources but also covers a number of water supply and sanitation issues as well, was approved by Parliament on September 9, 2007.Agualatina Accessed on September 27, 2007

Policy and regulation

Responsibility for policy setting in the Nicaraguan water and sanitation sector is vested in the National Council for Drinking Water and Sanitation - Comisión Nacional de Agua Potable y Alcantarillado Sanitario (CONAPAS). CONAPAS includes the Secretariat of the Presidency, whose representative presides the Council, the Ministry of Health, the Ministry of Environment, the national utility ENACAL, the regulatory agency INAA, the Institute for Territorial Studies (INETER) and the Social Investment Fund FISE.