Nicaragua Network

1. Ortega confirms plans for trans-isthmian canal
2. Government modifies proposal for Social Security reform
3. HIV/AIDS testing and treatment improve
4. Archeological discoveries on Caribbean Coast announced
5. US donates anti-narcotics equipment to Nicaragua
6. New wind farm inaugurated
7. Water and sewer access continues to grow
8. US foundation supplies medical training and medicines

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1. Ortega confirms plans for trans-isthmian canal

At a gathering commemorating the 118^th anniversary of the birth of national hero Augusto Sandino, President Daniel Ortega confirmed that the construction of a canal linking the Atlantic and Pacific Oceans across Nicaragua will go forward, pending on-going feasibility and environmental studies and approval by the regional council of the South Atlantic Autonomous Region (RAAS) and the National Assembly.  He said that, during the meeting of Central American presidents with US President Barack Obama, he had told Obama and his Central American colleagues about the plans for the canal.  He told Obama that while Nicaragua was working with a Hong Kong-based company, he would also welcome US investment in the project.  Ortega said that he told Costa Rican President Laura Chinchilla about the decision not to use the San Juan River, which forms the boundary between the two countries, as part of the route. 

Ortega addressed the question of the environmental impact of the canal, which would include Lake Cocibolca (Lake Nicaragua), saying, “The project itself, just as it will generate resources for us to move out of poverty, will also provide the resources to counteract damage to forests.”  [Commentators have noted that, in the case of Panama, because plentiful water for the canal is a matter of national interest, conservation of watersheds is also a matter of national interest, outweighing the interests of timber companies and others.]  Environmentalist Jaime Incer Barquero said that it was “prudent” to abandon the idea of using the San Juan River but that it would be necessary to study the implications of routing shipping through Lake Cocibolca, including whether the lake is deep enough for the passage of today’s giant ships.

Opposition leaders said the announcement was pure propaganda and that the building of the canal would probably not happen.  Former President Arnoldo Aleman, leader of the Constitutional Liberal Party (PLC), said that the Ortega government would be running enormous risks of environmental damage by using the waters of Lake Cocibolca.  He also warned that the government should “be careful” about expropriating farms along the route of the canal.

Costa Rican Vice-Minister of Foreign Affairs Carlos Roverssi said about the decision not to include the San Juan as part of the route, “We are pleased with the decision of the government of Nicaragua.  It has been an effort of our government, led by the president, to prevent the canal from passing along the San Juan River because of the devastating environmental effects.”  He said that since the canal would be located in its entirety in Nicaraguan territory, it would not be appropriate for him to make any further comments. 

Informe Pastran noted that a canal through Nicaragua has been a dream for 150 years.  But, if one believes the story about the feasibility study ordered by King Philip II of Spain in 1567, one can say that the canal has been under consideration for 550 years.  More recently, in 1899, US President William McKinley formed Isthmian Canal Commission to determine the feasibility of a canal through Lake Nicaragua and the San Juan River.  The United States chose to buy out the suspended Panama construction project after its French manager Philippe Bunau-Varilla passed out stamps showing a Nicaraguan volcano in eruption to members of the US Congress which then voted to abandon the Nicaraguan plans.  Former Costa Rican Foreign Minister Bruno Stagno said he hoped the person elected to replace outgoing Costa Rican President Laura Chinchilla will be as astute as Bunau-Varilla.  (Radio La Primerisima, May 18; La Prensa, May 15, 19; Informe Pastran, May 14, 20)

2. Government modifies proposal for changes in Social Security

On May 16, Walmaro Gutierrez, chair of the Economy Committee of the National Assembly, said that talks would begin in the next few days on the government’s proposal for changes to Nicaragua’s Social Security system.  He said that included in the talks would be representatives of employers and workers.  As announced on May 14 by presidential economic advisor Bayardo Arce, the government’s new proposal would not affect retirement age, or the number of years of work necessary to receive a pension, or the percent of their wages that workers would pay into the system.  Commentators said that the government apparently listened to “the voice of the people” expressed in the latest CID Gallup poll which reported that 68% of those surveyed rejected the previous proposal that included an increase in both the retirement age (from 60 to 65) and the amount of time a person needed to work (from 15 to 30 years).  However, Jose Adan Aguerri, president of the Superior Council of Private Enterprise (COSEP), insisted that employers “will not unilaterally assume all the costs” of this reform.  He added, “We are going to work in a coordinated manner, knocking on the doors of international organizations that have helped us,” such as the Inter-American Development Bank.  He also insisted that whatever changes are agreed upon have to gain the approval of the International Monetary Fund.

Members of the opposition had their own suggestions.  Former Treasury Minister and presidential candidate Eduardo Montealegre of the Independent Liberal Party (PLI) said that employers at all levels—national government, local governments, private sector companies—owe money to the National Institute of Social Security (INSS).  He suggested that “the INSS sit down with the national government and say, ‘OK, you owe me US$600 million,’ and since the INSS doesn’t need the cash today, the government should say, ‘Here I’ll give you US$600 million in 20 year bonds.’”

Manuel Ruiz, an expert on social security, said that the law governing the system can only be amended by the National Assembly which means that only the Assembly can change the percentage that workers pay into the system.  But the president can make some changes in regulations concerning who is covered and how pensions are calculated.  Cairo Amador, another expert, said, “The tendency indicates the source of the problem: the growth in newly inscribed workers is less that the projected growth of future pension recipients.”  Economist Nestor Avendaño suggested that the solution lies in bringing small businesses into the formal sector where they will contribute to Social Security and pay business taxes.  He noted that 76% of businesses do not employ basic accounting practices and have low productivity.  Part of the solution is to raise the technical capacity of both management and labor in the micro, small and medium sized enterprises (MIPYMES), he stated. 

In related news, the National Union of Older Adults (UNAM) last week presented to the first secretary of the National Assembly a proposal for a reduced pension for seniors who did not pay into the Social Security system for enough time to receive full pensions.  Porfirio Garcia, president of the organization, said that the UNAM proposal would require recipients of the reduced pension to have reached 60 years of age and have paid into Social Security for five years.  He said that 15,000 older adults would benefit.  Assembly Deputy Gustavo Porras, chair of the Health and Social Security Committee, said that 8,000 seniors were already receiving monthly government payments (Solidarity Bonuses) in lieu of a reduced Social Security pension. He added that, “The committee has finished its work; it saw that there were 45,000 older adults and after doing the calculations realized that at this time it is impossible to cover them.”  He said, however, that his committee would review the proposal and do the necessary calculations.  (El Nuevo Diario, May 16; Informe Pastran, May 15, 16, 17; La Prensa, May 15)

3. HIV/AIDS testing and treatment improve

Civil society organizations and the Ministry of Health marched on May 17 in solidarity with persons with HIV and their families. The march began at the Plaza Las Victorias and concluded at the National Engineering University with an educational fair where students and the general public were provided information about prevention and quick tests for exposure to the HIV virus.  Arely Cano, president of the Association of People living with HIV/AIDS (ASONVIHSIDA) spoke about the discrimination that HIV/AIDS victims face from family and friends and the need to further educate the public about the epidemic. A total of 7,875 new cases were reported in 2012 with 734 of them having full-blown AIDS. Since 1984, 1,019 Nicaraguans have died from complications of the disease.

The day before the march, Dr. Enrique Beteta, secretary general of the Ministry of Health reported on the advances in detection and treatment since the Sandinista government took office in 2007.  In 2005, under the neoliberal government of President Enrique Bolaños, between 12,000 and 13,000 people were tested for the HIV virus and there was no free treatment. With the return of the Sandinista Party to government in 2007, testing has grown to 120,000 people a year peaking at 350,000 in 2011 and treatment has been free.  Seventy to 80% of the cases discovered are in people under 35 years of age and those most at risk are youth and pregnant women. Between 2007 and 2011, approximately one new HIV case was reported per day. In 2012, that number jumped to between three and four per day. [This could be a function of greater awareness and increased testing or an indication of a deeper problem.] (La Prensa, May 17; Radio La Primerisima, May 16; El Nuevo Diario, May 16)

4. Archeological discoveries on Caribbean Coast announced

Archeologists announced with excitement last week the results of a search for possible sites of interest in the Caribbean Coast region of Nicaragua.  At a presentation at the Bluefields Indian and Caribbean University (BICU), archeologists who had worked on the survey sponsored by the BICU and the Center for Research and Documentation of the Atlantic Coast (CIDCA) said that they had identified 35 sites in the Bluefields region, 13 on Corn Island and 22 in the Indio Maiz region.  Among the findings were hillocks of stones in the shape of animals such as fish, turtles, or panthers which appeared to have had religious significance for the indigenous population.  Also found were petroglyphs and pottery. The researchers did not do any excavation or collection of artifacts but merely recorded sites visible on the surface. 

CIDCA-BICU director Donald Byers said that the discoveries are presently being registered with the Nicaraguan Cultural Institute.  He added, “We hope that the university can get funding to continue the work in other parts of the Nicaraguan Caribbean region.  These zones have … great archeological value that can help the development of the communities.”  Archeologist Yamil Serrano Romero said that the most important thing was to involve and sensitize the population and authorities of the area.  Serrano said that the archeologists did not merely make note of the sites according to established standards but they also held training sessions with local authorities, business people, students, tour guides and community leaders and gained the support of local leaders and traditional organizations.  (El Nuevo Diario, May 14; Radio La Primerisima, May 14)

5. US donates anti-narcotics equipment to Nicaragua

The United States Embassy in Nicaragua donated equipment to fight drug traffickers to the Nicaraguan National Police and to the Nicaraguan Naval Force.  Four Hardened Mobiletrace devices, each one costing US$166,000 were given to the Police as part of the Improving Police Work and Police Equipment Program.  Four TruNarc drug detection devices were given to the Naval Force under the Regional Maritime Support Program.  Both programs are part of the Central American Regional Security Initiative (CARSI) and are administered by the US Bureau of International Narcotics and Law Enforcement Affairs (INL), which is run by the State Department.  The government of the United States also provided training for the operation of the donated equipment.  The US Embassy said that the donated equipment will enable the Nicaraguan Police and Naval Force to examine confiscated substances and provide evidence in drug trafficking cases.  The INL also is providing US$3.7 million for programs to help reduce demand for drugs among youth at risk and for development programs in rural communities vulnerable to drug traffickers.  The Nicaraguan Air Force also received recently six Gast air compressors valued at US$6,000 each from the Military Group at the US Embassy for use in maintenance of the Nicaraguan Army’s airplanes.  (Informe Pastran, May 20)

6. New wind farm inaugurated

Eolo de Nicaragua, S.A. on May 15 inaugurated a US$110 million wind energy project that will provide 7% of the country’s electricity needs. The 22 wind generators will each produce 2 megawatts of electricity which will be connected to the national grid and sold to the private-public energy distribution companies Nisnorte-Dissur on a 20 year contract.  According to Minister of Energy and Mines Emilio Rappaccioli, 53% of Nicaragua’s electricity will be produced by renewable resources this year. The Eolo wind farm is the third to be inaugurated in the Department of Rivas. (El Nuevo Diario, May 16)

7. Water and sewer access continues to grow

More Nicaraguans than ever have access to potable water and sanitary sewers as one of the goals of the government of President Daniel Ortega continues to be met. Water and sewer are important components of the struggle against poverty, disease, and a better life for all Nicaraguans. In 2012 access to potable water in urban areas increased to 84.8% of residents, a 2.7% increase over 2011 and almost a 20% increase over the 65% of households that had access to water when the Sandinista government returned to power in 2007. Rural household access to potable water increased by 2.6% from 2011 to 2012 for a total of 36.1%, an increase of over 9% under Ortega.  Sewer hook-ups rose to 39% of urban households in 2012, up from 33% in 2007, and sanitary facilities for rural households rose to 43.4% from 34% in 2007. A total of 76.45 kilometers of new water lines were installed in 2012 and 77.66 km. of sewer. In addition, 19 new wells were drilled and 5 more were rehabilitated, serving 157,420 people. (Informe Pastran, May 17; Radio La Primerisima, May 17)

8. US foundation supplies medical training and medicines

The Disarm/Global Health Partners Foundation, in collaboration with Columbia University’s School of Medicine, will send a delegation of two professors and nine graduate students from the Department of Occupational Therapy to work with the Sandinista government’s early childhood development centers (CETs) where they will train families with disabled children. These classes, imparted in collaboration with Los Pipitos (an association of parents), are intended to “provide parents and families information, specific knowledge and to develop techniques, skills and abilities to make every home a school” for children with disabilities.

In late May the volunteers will work in CETs in Palacaguina, Condega, Ocotal, Somoto, La Paz Centro, Nagarote and Managua.  This is the eighth year of collaboration between Disarm/GHP and its Nicaraguan partners. The program is set to run for another five years and to cover all the CETs in the country. In addition Disarm/GHP has donated US$1.49 million in cutting edge medicines that will be distributed free of charge through the Ministry of Health. In about six weeks SINAPRED, the government’s disaster agency, will receive from Disarm/GHP emergency modules to use in event of hurricanes. Each module can maintain up to 5,000 people without external support for a month. The donation is valued at US$80,000. (Informe Pastran, May 17)