WEDNESDAY, DECEMBER 31, 2003

Stop Illegal Privatization of Water Service in Nicaragua!


Turn the Postponement into a Cancellation!


Calls and Faxes Still Necessary!


Call the President of the Inter-American Development Bank, Dr. Enrique Iglesias, to urge him to stop the privatization of Nicaragua's water! Send copies to Nicaraguan officials!


[This information comes to you from the Nicaragua Network. For more information, contact Katherine Hoyt at e-mail kathy@afgj.org or telephone (202) 544-9355). For background information, see Citizens Stand for Water]

The opening of the bids for the modernization of the management of Nicaragua's water delivery services (ENACAL) was postponed last week, thanks to the active organizing of Nicaraguan organizations such as the National Consumers' Defense Network and the Community Movement along with your sign-on letter (with the names of over 200 organizations from around the world) and your calls and faxes to the Inter-American Development Bank! Alejandro Bendaña, of the Managua-based Center for International Studies, was able to turn the international sign-on letter over to Dr. Iglesias in person at a conference in Rome. Iglesias promised to contact the IDB representative in Nicaragua about the matter.

The Inter-American Development Bank extended the loan of US$13.9 million to the government of Nicaragua to privatize the "modernization of the management of water delivery and sewage services" (as the Bank euphemistically calls water privatization) in that country. Nicaraguan activists are now asking for your continued support to turn the postponement into a complete cancellation! There will be a National Assembly hearing on October 21st to examine the water concession issue. Remember this is only a postponement! Privatization could still happen! Your calls and letters are still necessary!

ENACAL officials said that a new date will have to be set up in consultation with the Inter-American Development Bank which is why we must continue to put pressure on the IDB!

The National Assembly is a key player in the struggle against water privatization. Deputy Jaime Morales, who heads the Environment Committee of the Assembly, said last week that under no circumstances would his committee permit that ENACAL be privatized. "We have said categorically from the beginning that we are against any process of privatization of water, under any modality, directly or indirectly," stated Morales.

The water management privatization loan was extended in the face of strong opposition by the people of Nicaragua to the privatization of water or its delivery. Moreover, current Nicaraguan law forbids any kind of concession of water until a general water law is passed.

Please continue to call and write the office of the President of the Inter-American Development Bank Dr. Enrique Iglesias urging him to cancel this loan. Organizations should letters on their official letter head.

A sample letter in Spanish can be found below or you can write your own in English based on the talking points, also below.

Dr. Enrique Iglesias, President
Inter-American Development Bank
Washington, DC
Tel: (202) 623-1100
Fax: (202) 623-1799

Send copies of letters to:

Carlos Noguera
President of the National Assembly, Managua, Nicaragua
E-mail: cnoguera@correo.asamblea.gob.ni
Fax: 011-505-228-3039

Edwin Castro
Partido FSLN
Asamblea Nacional
E-mail: ecastro@correo.asamblea.gob.ni

Enrique Quiñonez
Partido Liberal Constitutionalista
Asamblea Nacional
E-mail: equinonez@correo.asamblea.gob.ni

President Enrique Bolaños
Presidente de la República de Nicaragua
Fax: 011-505-228-9298

To contact the IDB in other nations, consult http://www.iadb.org/hrd/phone/co.html
for IDB country offices phone and fax numbers in Latin America, Europe and Japan.

Make these points when you call or fax the IDB (or send letter in Spanish using sample below):

1. In 2003, the Nicaraguan National Assembly passed a moratorium on any privatization of water resources until a national water law was approved. Two separate bills on this subject are pending at the present time in the National Assembly, making it illegal to extend any concessions on water at the present and, depending which version is passed, in the future as well.

2. Nicaraguans have held spirited demonstrations in recent weeks in Managua to show their opposition to water privatization.

3. Nicaraguans have already suffered the failed privatization of telecommunications and of the supply of electricity in their country.

4. Nicaraguans view water as a human right, not as a commodity! Tell Dr. Iglesias that you do also!

5. There should always be full participation of all sectors of civil society in any decision-making about public services, which did not occur in this case.

6. The US$13.9 million loan [Loan 1049/SF-NI] extended by the Inter-American Development Bank to pay for this contract will create a new debt that all Nicaraguans will have to pay.

7. The jobs of ENACAL workers will be left at the mercy of the company that wins the concession, which will hire them as contractors only if it is convenient for the company, in open violation of collective bargaining agreements.

8. For all these reasons, the loan for the water "modernization" tract should be cancelled. The recent postponement should be made permanent.

For more information, Katherine Hoyt at the Nicaragua Network (e-mail kathy@afgj.org or telephone (202) 544-9355).

Sample letter in Spanish:

Dr. Enrique V. Iglesias
Presidente
Banco Interamericano de Desarrollo
Washington, DC
Fax: (202) 623-1799

Estimado Dr. Iglesias:

Estoy preocupado al conocer las intenciones de privatizar la modernizacion de la gestión de los servicios de agua potable y alcantarillado en Nicaragua. El pueblo nicaraguense sufre las consecuencias económicas y sociales de la generalizada privatización; entre ellas está la privatización del suministro eléctrico y de telecomunicaciones en su país y se ha movilizado para protestar contra la privatización del agua, pues al igual que nosotros, consideran que el acceso a este recurso es un derecho humano. Dada la importancia de este servicio, es necesaria la participación plena de la sociedad en la discusión y toma de decisiones sobre su destino, cosa que no ha ocurrido en este caso.

Para esta concesión se emplearán $13.9 millones de dolares estadounidenses que el Banco Interamericano de Desarrollo está otorgando a cuenta de nuevas deudas que tendrán que pagar todos los nicaragüenses. Quiero recordar al BID que en el año 2003 se aprobó en Nicaragua la Ley 440 que prohíbe cualquier tipo de concesión sobre el agua o los recursos hídricos mientras no sea aprobado una ley general de aguas, la cual se está debatiendo en este momento en la Asamblea Nacional.

Por los señalados, le insto a que cancele el Préstamo 1049/SF-NI que financia la concesión para la modernización de la gestión de los servicios de agua potable y alcantarillado de Nicaragua, por su ilegalidad frente a las normas legales vigentes y porque solo representa más endeudamiento para el pueblo nicaragüense.

Atentamente,

[Your name]

cc. Ing. Enrique Bolaños, Presidente de Nicaragua
Carlos Antonio Noguera, Presidente de la Asamblea Nacional de Nicaragua
y otros

For more information, contact Katherine Hoyt at the Nicaragua Network (e-mail kathy@afgj.org or telephone (202) 544-9355).

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