EXPERIENCE IN APPLICATION OF THE GENERAL METHODOLOGY FOR THE PREPARATION AND EVALUATION OF PUBLIC INVESTMENT PROJECTS AND SECTOR METHODOLOGIES FOR DRR AND CCA IN NICARAGUA

Nicaragua has significant experience in incorporating disaster risk reduction (DRR) and climate change adaptation (CCA) variables. In 2009, the first General Methodology for Project Formulation and Evaluation was introduced, and 2010 saw the adoption of the Economic Evaluation Guide for the Inclusion of the Disaster Risk Variable in Public Investment, developed by CEPREDENAC. 1 Based on the experience of applying this guide and developments and adaptation in different sectors, the National Public Investment System (SNIP) identified the need to update the methodology and published the General Methodology for the Preparation and Evaluation of Public Investment Projects (General Methodology) in 2012. This methodology is currently in the process of being further updated in coordination with the Economic Commission for Latin America and the Caribbean (ECLAC) under the RIDASICC2 project.

Additionally, in 2016, four sector-specific guides were developed for incorporating DRR and CCA, along with a guide to preparing terms of reference (ToR) for studies for drinking water supply projects.

The progress made by Nicaragua in the past decade in terms of DRR and CCA has significantly influenced the adoption of best practices by project formulators and evaluators. These practices have been successfully applied at different stages of the investment cycle, resulting in the development of more resilient projects. An interesting initiative undertaken by the Ministry of Transport and Infrastructure (MTI) is the development of Climate Change Correction Factors, which are applied at the project formulation stage to adjust infrastructure design based on climate change considerations.

Another noteworthy achievement is the improvement of investment programme and project management processes within the SNIP in Nicaragua. A clear three-phase 3 pre-investment framework has been established, which requires all investment projects, regardless of their size, type or sector, to commence from Phase 1 and progress to subsequent phases based on the investment amount and the evaluation results. It should be noted that DRR and CCA analysis is included from the initial phase in the evaluation carried out at the profile stage, with the completion of a technical data sheet.

Continuous capacity building is being carried out in Nicaragua’s SNIP for both SNIP personnel and project formulating entities. Notably, a significant training programme was implemented from 2013 to 2017, thanks to funding from the Inter-American Development Bank (IDB) and the Swiss Agency for Development and Cooperation (SDC). It involved a postgraduate course on project formulation and evaluation, with a focus on disaster risk management (DRM).