Nicaragua: Enacal faces financial crisis, says its president

The president of Nicaragua‘s national water utility Enacal, Ruth Selma Herrera, said the entity does not have the financial capacity to solve potable water supply problems currently affecting the country, especially in capital Managua, paper La Prensa reported. Herrera made the statement before the infrastructure and public services committee of congress, adding that the entity is currently unable to carry out the projects needed to provide 24-hour a day service to the whole city.

«Enacal’s tariffs are 95% subsidized,» she said. «The state has not provided a subsidy of 350mn córdobas [US$17.3mn], and we have 50mn córdobas in pending liabilities. The state must decide what to do with the company because if this situation persists, Enacal will disappear.»

Source: BNamericas [subscription site], 20 Mar 2009

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