Economic Efficiency
The efficiency of urban service provision is low, with estimated non-revenue water of more than 55% in Managua. ENACAL has taken recent steps to improve efficiency, however and labor productivity has increased from 7.5 employees per 1000 water connections in 2006 to 7.04 in 2007. In 2007 operating and administrative costs decreased by 10%. ENACAL has accomplished these improvements by cutting back on energy usage, increasing billed revenue to 11.6% as of April 2008 through improving their commercial database, expanding metering, and identifying customers who were not previously billed.
Despite these improvements, ENACAL currently has a debt of 436 million córdobas (US$24 million) which is continuously growing as their expenses exceed their earnings by C$31.8 million (US$1.7 million) per month.
Read more about this topic: Water Supply And Sanitation In Nicaragua
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