USAID CBJ FY 2002: Nicaragua

Summary: Hurricane Mitch was the worst natural disaster to hit the Central American region in two centuries, pouring out record levels of rain, and causing widespread flooding and landslides. USAID's objective--Rapid Reconstruction and Sustainable Recovery in Mitch-Affected Areas--focused on five sectors: public health; economic reactivation; disaster mitigation and environmental planning; education; and municipal small infrastructure. Geographically, programs focus on Nicaragua's northern and northwestern departments and along the Rio Coco in the Atlantic region. USAID expects the activities it funds to reach approximately one third of the more than 800,000 Nicaraguans who were affected by Hurricane Mitch. USAID is coordinating closely with other USG agencies implementing hurricane reconstruction activities in Nicaragua.

Key Results: To achieve the objective, USAID's program is expected to achieve the following results: 1) health status of Mitch-affected families maintained or improved; 2) economic livelihood of farmers, microentrepreneurs, and laborers in Mitch-affected areas restored; 3) vulnerability to flooding and other natural disasters mitigated; 4) conditions restored for primary school students to learn; 5) basic infrastructure in selected Mitch-affected municipalities repaired; and 6) funds channeled through the Government of Nicaragua (GON) for reconstruction activities managed honestly and effectively.

Performance and Prospects: Implementation of reconstruction and recovery activities is well underway, with USAID expending nearly $62 million of the $94 million program by March 31, 2001 and achieving almost all targets on or ahead of schedule. The objective will be essentially completed by December 31, 2001.

USAID is rebuilding water and sanitation systems for small communities. Reconstruction of five health posts has been completed. Construction of three large health centers began in Tipitapa, Sebaco, and Esteli. As part of an activity to provide sources of clean water to health posts throughout the Mitch-affected area, two deep drilling rigs completed 87 wells in the departments of Nueva Segovia and Chinandega by December 31. These rigs are expected to drill 260 new wells for health posts and 60 for schools during the life of the program.

USAID distributed 31,000 household water filters in 22 municipalities. Households are using the filters effectively, leading directly to a decrease in both morbidity and mortality due to diarrheal diseases. USAID activities have helped prevent an increase in mortality due to diarrheal diseases, with the rate dropping from 449 cases per 10,000 in 1999 to 372 per 10,000 in 2000. In FY 1999, USAID supplied permethrin-treated bednets to households in areas plagued by the deadly falciparum malaria, leading to a 40% decline in new cases in these areas. New cases of falciparum malaria remained 20% below the pre-Mitch levels.

Chronic malnutrition remains a major problem in Mitch-affected areas, affecting 25% of children under five. Feeding practices during the crucial weaning months are a major cause: children receive rice water or water from cooking beans or coffee, and almost no food or vitamins. USAID is working to address this problem in three key departments, concentrating on nutrition education, counseling, and care of sick children.

USAID, working through Alistar Nicaragua, is providing primary health care and health education to Miskitu and Mayangna communities along the Rivers Coco and Lakus, focusing on the control of vectors of epidemic diseases, the prevention of sexually transmitted diseases, and nutritional improvement. These communities are among the most isolated in Nicaragua, up to eight days by boat from the nearest source of electricity. They were also among the most severely damaged by flooding caused by Mitch. Restoring and improving systems of primary health care are among the most immediate needs of these communities.

USAID funding channeled through USPVOs and local NGOs supports a variety of initiatives to reactivate the economy. USAID partners report that approximately 106,000 households have benefited from Mitch assistance by the end of 2000, exceeding the target of 100,000 families. Of these, 26,000 households participated in P.L. 480 food-for-work or cash-for-work programs, primarily road rehabilitation. To date, more than 700 kilometers of roads have been improved or rehabilitated, financed by resources from the CACERDF appropriation and through the P.L. 480 Title II emergency program. As a result, another 895 kilometers of roads, not damaged directly by Mitch, are again a useful part of the national road network. The USAID road improvement and rehabilitation has benefited over 22,000 families in 472 communities. As noted recently by the General Accounting Office, the roads being rehabilitated are holding up well, withstanding the torrential rains of Hurricane Keith in September 2000. The Adventist Development and Relief Agency (ADRA), using $3.5 million in P.L. 480 Title II resources, is implementing a Food for Work program in the department of Nueva Segovia. The program provides temporary employment on community improvement projects for families that would otherwise depend on agriculture for their livelihood. Other USAID partners (Project Concern International and Save the Children) are implementing reconstruction activities with Title II resources valued at almost $10 million.

Over 52,000 households have begun using improved, environmentally sustainable agricultural practices on their farms. Over $7 million has been lent to some 19,900 micro-entrepreneurs (over 75% of whom were women). USAID-supported activities have placed over 4,000 household-size metal silos, both reducing post harvest losses and allowing farmers to sell later, at more favorable prices. USAID activities also encourage crop diversification and the use of micro-irrigation systems.

An important element of the USAID reconstruction program is the mitigation of sites that pose a threat for future flooding or landslides. With the support and guidance of a U.S. Department of Agriculture (USDA) forester, 15 local NGOs and PVOs have planted nearly 300,000 trees in Mitch-affected areas. The USDA also provided training to 250 people in nursery management, seed collection, environmental mitigation, and geographic information systems. USAID partners stabilized stream channels, improved drainage ditches, and repaired dikes to reduce the threat of flooding. Residents of almost 230 communities have been trained in disaster response and developed emergency plans.

The U.S. Army Corps of Engineers (USACE) provided a team of safety experts to carry out a comprehensive inspection of four dams in Mitch-affected areas. The team, comprising geologists, dam safety experts, and civil engineers, worked with engineers of Nicaragua's Institute of Territorial Studies (INETER) and Electric Company (ENEL) in an evaluation of each dams' safety. Two dams were severely damaged during Hurricane Mitch, and failure of either would be catastrophic to communities downstream. The USACE team is completing the designs for the repair of these dams-and USAID is collaborating with other donors to find funds to effect permanent repairs. The USACE is also supporting quality assurance for the construction and rehabilitation of health centers and health posts.

Save the Children has trained brigades of seven municipalities in search and rescue operations, first aid, and fire fighting, and helped develop emergency plans and risk maps for communities with trained disaster committees. CARE and USAID have been creating fire-fighting brigades and providing training courses on forest fire prevention in the dry regions of the departments of Madriz and Nueva Segovia which are susceptible to forest fires. World Relief has undertaken 12 projects to clean and stabilize channels along rivers and tributaries of Rio Pire, Rio Jicaro, Rio Pueblo Nuevo, and Rio Coco. Some 802 families from 12 communities participated, improving approximately 13 kilometers of channel course.

In 2000, USAID also provided assistance to schools. USAID completed the three planned deliveries of educational materials, classroom supplies, and equipment to 675 classrooms in 222 schools serving nearly 25,000 students. An additional three deliveries of supplies and equipment will occur in 2001 as well as 5,500 pieces of classroom furniture. In October 2000, two NGOs began vocational training and manual arts programs for 250 disadvantaged children from a school in an urban resettlement area.

USAID municipal development activities have been extended to Mitch communities. In 2000, the Posoltega dike was repaired, a retaining wall in Matagalpa was constructed, and a storm drainage system in Leon has been completed. Up to ten similar infrastructure projects will be completed in 2001.

In an effort to ensure all reconstruction and rehabilitation funds administered by the GON directly are used effectively and transparently USAID has contributed $1 million to augment a $20 million IDB loan to establish an Inspectorate within the Government of Nicaragua.

Possible Adjustments to Plans: USAID has made minor adjustments to the reconstruction program through reprogramming approximately 2% of the CACEDRF funds from activities with slower implementation rates to better performing activities.

Other Donor Programs: The USG will provide approximately 10% of the total donor funding supporting Nicaragua's reconstruction. Other major contributors are Japan, the Inter-American Development Bank (IDB), World Bank, the European Union (EU), the Nordic countries, and Spain. The World Bank, IDB, and Japan fund hospital construction and renovation, other health infrastructure projects, and urban water/sanitation projects. A $40 million World Bank and IDB health sector loan will finance infrastructure, supplies and facilities. Numerous multilateral and bilateral donors provide credit for small farmers and micro-entrepreneurs. The EU and Japan are working on rural development and agriculture activities. The education sector is assisted by a $13.3 million World Bank loan. The Japanese began construction of 130 new schools during 1999. A World Bank-funded project, implemented by the GON, has focussed on rural projects, such as wells and water systems, latrines, and road maintenance in 50 municipalities. The World Bank and the IDB, with technical assistance from the USACE, are implementing large road rehabilitation programs. Some USAID-funded programs are co-financed by other donors. The EU, for example, jointly funded the CARE pilot cash for work program.

Principal Contractors, Grantees or Agencies: U.S. organizations include: Academy for Educational Development (AED), Adventist Development Relief Agency, Alistar Foundation, Camp Dresser & McKee, CARE, Catholic Relief Services, Chemonics, Cooperative League of the USA (CLUSA), Deloitte Touche Tohmatsu, Development Alternatives Inc., Management Sciences for Health, Project Concern International, Chemonics, Save the Children, University Research Corporation, US Army Corps of Engineers, USDA, and World Relief Corporation. In addition there is the regional Inter-American Institute for Cooperation for Agriculture and the local Emergency Social Investment Fund (FISE).

Nicaragua 524-005

U.S. Financing

(In thousands of dollars)

	Obligations		Expenditures		Unliquidated
Through September 30, 1999	0	DA	0	DA	0	DA
	0	CSD	0	CSD	0	CSD
	0	ESF	0	ESF	0	ESF
	93,108	CACEDRF	419	CACEDRF	92,689	CACEDRF
	0	FSA	0	FSA	0	FSA
	0	DFA	0	DFA	0	DFA
Fiscal Year 2000	0	DA	0	DA
	0	CSD	0	CSD
	0	ESF	0	ESF
	1,000	CACEDRF	32,269	CACEDRF
	0	FSA	0	FSA
	0	DFA	0	DFA
Through September 30, 2000	0	DA	0	DA	0	DA
	0	CSD	0	CSD	0	CSD
	0	ESF	0	ESF	0	ESF
	94,108	CACEDRF	32,688	CACEDRF	61,420	CACEDRF
	0	FSA	0	FSA	0	FSA
	0	DFA	0	DFA	0	DFA
Prior Year Unobligated Funds	0	DA
	0	CSD
	0	ESF
	0	CACEDRF
	0	FSA
	0	DFA
Planned Fiscal Year 2000 NOA	0	DA
	0	CSD
	0	ESF
	0	CACEDRF
	0	FSA
	0	DFA
Total Planned Fiscal Year 2000	0	DA
	0	CSD
	0	ESF
	0	CACEDRF
	0	FSA
	0	DFA
			Future Obligations		Est. Total Cost
Proposed Fiscal Year 2001 NOA	0	DA	0	DA	0	DA
	0	CSD	0	CSD	0	CSD
	0	ESF	0	ESF	0	ESF
	0	CACEDRF	0	CACEDRF	94,108	CACEDRF
	0	FSA	0	FSA	0	FSA
	0	DFA	0	DFA	0	DFA

Nicaragua

Activity Data Sheet

Nicaragua 524-005

U.S. Financing