Nicaragua Network

1. Nicaragua claims part of Seaflower Biosphere Reserve
2. Canal project questioned in AP story and defended by Nicaraguan promoters
3. Central American Parliament meets and holds conference in Managua
4. Nicaragua calls on US not to bomb Syria
5. Fraud accusations shake Nicaragua’s elite
6. Renewable energy production exceeds 50%
7. Sea turtles arrive at last
8. First death from leptospirosis and yet more cases of dengue fever
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1. Nicaragua claims part of Seaflower Biosphere Reserve

On Aug. 27, Vice-Minister of the Environment Roberto Araquistain announced that Nicaragua will ask the United Nations Education Science and Culture Organization (UNESCO) for authority over the part of the Seaflower Biosphere Reserve that is located within the waters allocated to Nicaragua by the International Court of Justice (World Court) in November of last year. He stated that the executive branch and the National Assembly are preparing a decree to name a part of the Seaflower as a Nicaraguan biosphere reserve and then will petition UNESCO for recognition. The Seaflower Reserve, which includes 349,800 square kilometers of ocean, is the habitat of an estimated 400 species of fish and interconnected ecosystems including complex coral formations resistant to climate change that could provide important scientific information.  Araquistain said that President Daniel Ortega had proposed that Colombia and Nicaragua could manage the reserve jointly.  He did not indicate how much of the reserve falls in Nicaraguan territorial waters but he did refer to Nicaragua’s part as a “little piece.”  Environmental expert Jaime Incer Barquero said, “What we have to do is match our efforts to what Colombia has done or surpass what they have done if that is possible and try to make it a bi-national area.”

In answer to Nicaragua’s announcement, an official communiqué of the Colombian Foreign Ministry said that Colombia would not recognize any right on the part of Nicaragua to administer and protect the Seaflower Reserve jointly with Colombia and added that UNESCO cannot make pronouncements on differences between nations. Nicaraguan National Assembly Deputy Victor Hugo Tinoco said that the World Court ruling “establishes with absolute clarity” where the borders are and the reserve lies in both Colombian and Nicaraguan waters. Therefore, he insisted, the two countries should begin to dialogue and coordinate between themselves the protection of the area.  He said that UNESCO should formally call on the two countries in the face of the new legal situation to define how they are going to protect the marine Reserve. Juan Bautista Arrien, permanent UNESCO representative in Nicaragua, said, “The reserve is the same even if it has two owners. The two countries must now agree how to administer it.”  (El Nuevo Diario, Aug. 27; Informe Pastran, Aug. 27; La Prensa, Aug. 28, Sept. 1; Radio La Primerisima, Aug. 29)

2. Canal project questioned in AP story and defended by Nicaraguan promoters

On Aug. 29, the AP news agency published an article entitled “Chinese executive who wants to build Nicaraguan trans-ocean canal has spotty global record” in which it examined the projects begun around the world by Chinese businessman Wang Jing, who was given the concession to explore the feasibility of a shipping canal across Nicaragua and to raise international funding to build the canal.  The article asserts, “In 12 of the 20 countries where Wang’s Xinwei Telecom Enterprise Group and associated companies say they’ve done business, the AP found no evidence of a successful, large-scale project up and running.”  The article adds, “In the other eight countries where Xinwei operates, either analysts and major telecom firms said they had not heard of the company, or Xinwei did not provide enough details about its partners or projects to allow its record to be examined.” In Nicaragua, Xinwei’s wireless network has been delayed. The company was successful marketing its wireless technology within China but outside China it has been much less so.  Wang took over the company in 2010, buying 37% of its stock with $16 million of his personal funds and turning it around to the degree that it made a profit of US$300 million in 2012.

Several analysts consulted by AP questioned as well whether the Nicaraguan canal would earn enough to be financially feasible.  Bob Prieto at Fluor, described as “one of the world’s largest engineering and construction firms,” said that the project would have to draw half as much traffic as the shorter, more established Panama Canal, which he said was “a very aggressive stretch,” adding, “I don’t see it penciling out.”

Meanwhile, a group of 52 Chinese experts contracted by Wang Jing’s HKND Group has been in Nicaragua since Aug. 19 working on feasibility studies for the canal project.  Laureano Ortega of the Pro-Nicaragua Agency said that the delegation was headed by representatives of the China Railway Construction Corporation which he described as “one of the most important companies in the world in the design and construction of large projects.” Ortega said, “They are carrying out an exhaustive, serious analysis of the possible routes and possible areas of the sub-projects of the canal project to evaluate the feasibility and viability of each component” including possible environmental and social impacts.  Besides a shipping canal, the project envisions an oil pipeline, a railroad, and two deep-water ports.  HKND also announced that it has engaged SBE, a Belgian hydraulic engineering company, and MEC Mining, an Australian engineering firm, to participate in the “technical feasibility study and route determination.”  SBE designed the locks for the Panama Canal expansion.   (La Prensa, Aug. 30, Sept. 1; Informe Pastran, 29, 30; Associated Press, Aug. 29; Radio La Primerisima, Aug. 30; DredgingToday.com, Aug. 29)

3. Central American Parliament meets and holds conference in Managua

The Central American Parliament (PARLACEN) held a session last week in Managua and initiated the 22^nd Conference of Central American and Caribbean Political Parties with the theme: “The Role of Political Parties and the New Instruments of Integration in Latin America.”  Participating were representatives from Guatemala, Honduras, El Salvador, Nicaragua, Panama, and the Dominican Republic.  In his address to the gathering, President Daniel Ortega invited Costa Rica, the only Central American country that is not a part of PARLACEN, to join the regional legislative body.  Ortega said that under the Association Accord with the European Union, which recently went into effect for Nicaragua, Panama, and Honduras, the European Parliament wanted PARLACEN to play a role similar to that of the European Parliament but that was not possible due to the absence of Costa Rica.

One of the forums held during the conference, organized by Central American women parliamentarians, was entitled “Women, Family, Politics, Security and Economic Empowerment.”  PARLACEN Deputy Doris Tijerino said that it was the hope of the organizers that the ideas presented in the forum would be taken by the representatives of the different sectors involved to their basis and would contribute to the debate.  Ministers of Tourism also held a forum at the event at which further regional integration was topmost on the agenda.

In related news, Worldwatch Institute and the Central American Institute of Business Administration (INCAE) released a report showing that Central America was increasing its consumption of fossil fuels for transportation and to produce electricity, thus contributing to global warming and air pollution.  In spite of the advances in hydroelectric and thermal energy production, the report said that the region has not moved forward fast enough in the areas of solar, wind and biomass energy.  The report noted that while Costa Rica has as a goal reaching 100% renewable energy production by 2021 and Nicaragua 94% by 2017, it is not clear that the legal framework and financial resources exist to make those goals a reality.

Meanwhile, agriculture ministers from Central America, Mexico, and the Dominican Republic, meeting in Santo Domingo, agreed to work together to combat the major plagues affecting agriculture in the region, in particular the rust affecting the region’s coffee crops.  Another crop in danger in the Caribbean region is citrus fruit, which is being attacked by Huanglongbing or citrus greening disease. The agriculture ministers resolved to strengthen agriculture border controls and phytosanitary measures. (Informe Pastran, Aug. 27, 30; Radio Primerisima, Aug. 28; El Nuevo Diario, Aug. 27; La Prensa, Aug. 28, Sept. 1)

4. Nicaragua calls on US not to bomb Syria

Speaking at the Managua meeting of the Central American Parliament, President Daniel Ortega called on the United States not to commit “the crime of bombing Syria. Bombing Syria will not bring peace, but more deaths, lead to more wars. It is by negotiating that we finally managed to put an end to the wars here in Central America.” Ortega cited the example of Colombian President Juan Manuel Santos negotiating with the leaders of the Revolutionary Armed Forces of Colombia (FARC) as a model.  Ortega called the situation dangerous and said that the Egyptian armed forces have stated that they will not allow war ships intent on making war with Syria to use the Suez Canal. Ortega went on to say, “Listen to the prime minister of England and listen to the prime minister of France castigating Syria. And who has castigated them for the historical crimes they committed in Africa, Asia, and Latin America, millions of humans exterminated in the period of colonialism and neo-colonialism, nations still … subjected to those countries?” He emphasized that authority resides in the UN Security Council, not in the imperial powers and called on Obama to look to Martin Luther King, Jr. for his inspiration. Vice President and former head of the army, Omar Halleslevens called on the US to wait for the report of the UN inspectors before taking action. (Radio La Primerisima, Aug. 28; La Prensa, Aug. 30)

5. Fraud accusations shake Nicaragua’s elite

Nicaragua’s economic and political elites have been shaken by an expanding financial scandal involving Alvaro Montealegre [whose brother is Eduardo Montealegre, a prominent political figure], Roberto Bendaña, and Hugo Paguaga.  Early last week the Sisters of St. Teresa, a teaching order with a long history in Nicaragua, revealed that they had filed accusations against Montealegre and Bendaña for fraud in the amount of US$526,433.  The nuns had invested the funds in certificates of deposit in International Investments and Financial Services, Inc. where the two men were listed as president and treasurer.  According to the sisters’ communiqué, when the certificates matured—in October of 2012 and July of 2013—they asked for their funds “without being able to obtain a clear answer about our case or about the real financial situation of that financial entity.”  The nuns thanked supporters and promised to fight for return of the funds, which they said are “destined for the benefit of the population that we assist with our works.”

Public prosecutor Ana Julia Guido said that, “Obviously, there is a case here of aggravated fraud.  This is the worst—taking advantage of nuns who educate children.” The money was evidently invested in companies owned by Monteagre and Bendaña, including Café Don Paco, S.A.  It was also revealed that Montealegre and Bendaña’s investment company, which was registered in Panama, was not licensed in Nicaragua by the Superintendent of Banks as required by Nicaraguan law and thus not permitted to accept investments from the public.  Montealegre held a press conference on Aug. 28 at which he promised that within two weeks he would resolve the problem of the funds of the Sisters of St. Teresa. He denied that his company was without funds. 

At the end of the week three more women came forward to accuse Montealegre, Bendaña, and Paguaga of money laundering, organized crime and aggravated fraud in a case similar to that of the sisters.  Gloria López de Argüello, Lilliam López de Noguera and Francisca Noguera López said that they were owed US$393,000 by International Investments and Financial Services, Inc. and had not been able to redeem their certificates of deposit.  The lawyer for the women said that she expected the number of accusers to increase.  Sure enough, Matagalpa businessman Juan Francisco Castro said that in 2011 he had loaned money to Café Don Paco which was never repaid and the Nicaraguan Social Security Institute (INSS) said that Almori BPO, owned by Montealegre, was US$416,000 behind in its employer contributions to the INNS.  Then the rental contract for the office space occupied by Almori and a call center also owned by Montealegre was cancelled because the company was US$100,000 behind on its rent.  (Informe Pastran, Aug. 28; Radio La Primerisima, Aug. 29, Sept. 2; El Nuevo Diario, Aug. 27, 29, 31; La Prensa, Aug. 30)

6. Renewable energy production exceeds 50%

Minister of Energy and Mines Emilio Rappaccioli reported that in 2013 so far 52% of electricity consumed has been produced by renewable energy sources and predicted that Nicaragua will achieve 51% for the entire year. This will be the second year that Nicaragua has produced at least half of its energy from renewable sources. Of the 51%, 18% was wind generated and another 18% from geothermal, an additional 8% each was produced by hydroelectric and biomass. The national plan is to produce over 90% of Nicaragua’s electricity from renewable sources by 2017. For that to happen, the Tumarin hydroelectric project (which will produce 253 megawatts of electricity) the ALBA-Wind projects (set to produce 44 megawatts) and the Casitas-San Cristobal and Larreynaga geothermal electric projects (which will produce 35 and 17 megawatts respectively) must be completed. 

Last week a consortium of Costa Rican and Honduran companies completed a US$43 million hydroelectric project in Jinotega that will provide electricity to about 15,000 people. The project was funded with a mix of money from private sources, from the Central American Economic Integration Bank, and from Nicaraguan banks and created 150 jobs. In other energy news, by a vote of 87 in favor the National Assembly approved a US$10 million loan from the BCI Bank of India for electrification projects including a new sub-station to serve an area in the Department of Rivas and another to serve the airport and Las Mercedes Free Trade Zone in Managua. (El Nuevo Diario, Aug 27; Radio La Primerisima, Aug. 28, 29)

7. Sea turtles arrive at last

Last week we reported that environmentalists were concerned that sea turtles, which nest on Nicaragua’s beaches at Chacocente and in the La Flor nature preserve, had not yet arrived to lay their eggs. This week the turtles began to arrive in mass, with 7,000 arriving at Chacocente and 8,000 at La Flor. The Ministry of the Environment said that 25,000 turtles are expected to lay their eggs at those two beaches plus Jiquilillo. A single turtle will lay about 100 eggs, but only one hatchling in 1,000 will live to adulthood.  Meanwhile, 150 young Hawksbill turtles, one of the most endangered species of sea turtle, were released at the Estero Padre Ramos nature reserve in the department of Chinandega. The occasion marked the fourth Hawksbill Turtle Festival which was organized to educate the people about the importance of protecting the Hawksbills. (El Nuevo Diario, Aug. 30, 31)  

8. First death from leptospirosis and yet more cases of dengue fever

A nine-year old Managua boy became the first fatality from leptospirosis this year. The disease is spread by rodent urine. The Ministry of Health has been leading a national campaign with the help of other cabinet ministries and popular brigades to apply 13,303 kilograms of the poison “biorat” to nearly 110,000 homes protecting over half a million people. Forty-one markets, 381 schools, and 218 health clinics have also been treated. In other health-related news, Central America has suffered 32 deaths from dengue fever—six of them in Nicaragua—out of 63,849 reported cases of the disease. Costa Rica has seen the most cases but has only had two deaths. Honduras has had the most deaths at 17, while having 10,000 fewer than Costa Rica’s 31,000 diagnosed cases.  This has been a particularly heavy dengue season throughout Central America. (Radio La Primerisima, Sept. 1; El Nuevo Diario, Aug. 31)