IMF calls for govt to sort out Enacal's finances

- Friday, April 29, 2011

IMF calls for govt to sort out Enacal's finances

An agreement with the IMF calls for Nicaragua's government to improve the finances of state water and sewage utility Enacal so the company can become profitable, local daily La Prensa reported.

While the government has no plans of privatizing the company, it will take steps to ensure the company can become financially sustainable, according to central bank (BCN) president Antenor Rosales.

Measures will include improving the efficiency of Enacal's billing and customer services, according to the report.

Start your 15 day free trial now!

cta-arrow

Already a subscriber? Please, login

The lower house's infrastructure and public services committee began a consultation process at the beginning of April to reform a fundamental law governing Enacal to improve the quality of service and ensure fair tariffs.

The committee proposed adjusting water rates based on consumption and subsidizing rates for families consuming less than 20m3/month. Households exceeding this amount will pay 25% of the additional value per cubic meter.

Nicaragua's potable water sector has an estimated loss rate of 52% due to unpaid water usage and poor infrastructure, BNamericas reported previously.