Severe inequality exists in Nicaragua (Gini of 0.57) with an impact on access to basic services mainly for the rural population. Rural municipalities continue to have weak capacities, but budgetary transfers from central to local governments as defined by law continue to increase as the overall economy grows. Reducing the gap between capacities and quality expenditures at the local level is a relevant issue.

The program smoothly phases out its support to local and national partners, integrates experiences and best practices into the public investment cycle on local and national level and consolidates investment models to improve sustainable living conditions of poor people.

• Citizens of 15 rural municipalities as direct beneficiaries (760’000 inhabitants).
• Organizations of civil society and local stakeholders, municipal administrations.
• National public institutions with direct links to municipalities.

Outcome 1: Capitalization of best practices and experiences result in improved national and local norms and standards of public investment.

Outcome 2: Stronger municipal institutions with improved performance and professionalism (efficiency, transparency, inclusion, equity).

Outcome 3: Improving the coverage (5-10% annually) of quality rural feeder roads for rural women and men, based on participatory processes.

Expected results:  

1. Best practices and experiences are thoroughly documented and disseminated to local and national partners
2. National norms and regulations in public investments are improved and disseminated.
3. Increased, improved and more effective municipal investment in rural feeder roads.
4. Increased municipal income in at least 90% of supported municipalities (excluding financial resources from SDC).
5. Municipal budgets are based on participatory and transparent processes with a clear gender focus.

Results from previous phases:  

19 municipalities improved their performance:

• Real Estate Tax revenues increased by 30%
• Increased coverage of rural feeder roads, water and sanitation;
• Enhanced pre-investment planning (leverage of USD12 per each USD1 invested)
• Increased rural per capita investment (21 to 32 USD)
• Over 400 community-led maintenance committees (consisting of 2’000 men and women) provide a sustainable solution to increase the life-span of rural feeder roads
• 5 municipalities developed plans and offices for Local Economic Development, benefitting more than 2000 small producers, generating over 500 jobs, and supporting 300 women to find economic alternatives.

• National Institute of Municipal Development (INIFOM)
• National Universities as providers of training courses on engineering
• Local stakeholders such as communities and grass root organizations and development organizations

Collaboration and exchange with other SDC financed programs operating either in the same geographical area (PROCACAO) or with similar approaches with municipalities (PRODET).

Phase 6 01.01.2016 - 31.12.2020   (Completed)