The proposed project seeks to enhance the climate resilience of investments in Nicaragua’s rural water supply sector. The project is closely aligned with relevant national policies, strategies, plans and legislation. In particular, the project would support the implementation of the National Environment and Climate Change Strategy and Action Plan for 2010-15.

The SCCF grant ($6 million, excluding Agency fee) builds on the IBRD Water Supply and Sanitation Project (PRASNICA) and the GIZ Technical Assistance Program for Water and Sanitation (PROATAS), with total confirmed co-financing amounting to $31.25 million. Overall, the project design is cost-effective.

The project is structured around three main components: (i) strengthening the resilience of water sources to drought and developing economic instruments for the protection of water sources; (ii) building resilience of water supplies to sea-level rise; and (iii) strengthening the adaptive capacities of national and municipal government. More than 60 per cent of the SCCF grant would be allocated towards tangible investments under components (i) and (ii).

With a close interface with major investment projects and the Government’s investment plan in water and sanitation, the project is well-placed to yield significant and sustainable adaptation benefits for Nicaragua’s rural poor.

Source: TheGef.org (PDF)