Nicaragua Network

1. World Court decision interpreted differently by Nicaragua and Costa Rica
2. National Assembly passes 2014 budget; solid growth predicted
3. Illegally hooked up electricity customers have to “legalize”
4. Indigenous denounce invasion by “colonizers”
5. Women’s and Children’s police stations increase as do solidarity volunteers
6. Sugar is Nicaragua’s fifth highest export
7. Regional environmental groups meet on mining issues
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1. World Court decision interpreted differently by Nicaragua and Costa Rica

On Dec. 13, the International Court of Justice at The Hague (World Court) issued a decision on a request by Nicaragua for provisional measures against Costa Rica pertaining to environmental damage caused by the 130 kilometer-long road the latter country has built along the San Juan River.  The measures would be temporary, pending resolution by the Court of the boundary dispute between the two countries expected in late 2014 or early 2015.  The Court “concluded that the petition of provisional measures cannot be considered” because Nicaragua “did not demonstrate the urgency” of the measures. The judges added that the issue will be resolved in the Court’s final ruling on the San Juan River case.

Nicaragua had asked the Court to mandate that Costa Rica carry out three provisional measures: 1) Conduct an environmental impact study of the road; 2) Carry out mitigation tasks based on that study; and 3) Stop construction on the road until the final ruling on the case.

The Court said that Nicaragua had not contested Costa Rica’s estimate that the road only contributed 1%-2% of the sediment in the river and did not demonstrate how the road damaged the different species living in the river or what species might be affected.  The Court noted that Costa Rica had already promised to present a study of environmental damage from the road on Dec. 19.  The Court also said that Costa Rica had recognized that it had the obligation not to cause damage with the construction of the road in its territory and to take the appropriate measures to prevent such damage and had recognized the need to take action to remedy and mitigate the damages already caused by the poor planning and execution of the road in 2011. 

Nicaragua’s representative before the Court, Carlos Argüello, said that the ruling would mean that Costa Rica would stop work on the road at least through 2014.  He said that the road caused environmental damage to Costa Rica itself, adding, “If this decision of the Court puts a stop to that and paralyzes things so that they are studied well, then I believe that it is an achievement for Nicaragua and for Costa Rica because in the end both will benefit.”

Costa Rica appeared to understand the Court’s ruling slightly differently although it was unclear exactly how differently.  On Dec. 14, President Laura Chinchilla said that her country would continue work on the road once the dry season sets in, addressing the impact of the previous rainy season. She admitted that errors had been committed but said “they were inflated to an infinite degree and the value of the road was ignored.”  Chinchilla confirmed that Costa Rica was preparing an 800 page document evaluating the impact of the road on the environment that will be released on Dec. 19.

Costa Rican Minister of Public Works Pedro Castro said that in January a decision will be made on the design for the remaining sections of the road and bidding will begin in mid-year. But, in mid-year the rainy season begins again so it is unclear exactly when construction would resume.  Castro said that about US$40 million had been invested in the road with its completion probably needing another US$60 million.  La Prensa described it as “a rustic road almost impassible for vehicles.”  It was begun in 2011 but suspended a year later after accusations surfaced of corruption in the use of millions of dollars of government funds, one of the worst scandals of the Chinchilla administration.  (La Prensa, Dec. 13; Radio La Primerisima, Dec. 13, 14; Informe Pastran, Dec. 13, 16)

2. National Assembly passes 2014 budget; national and international officials predict solid growth

On Dec. 11, the National Assembly debated and passed the national budget for 2014 with 66 “yes” votes from the Sandinista deputies and 23 “no” votes from the opposition.  With US$2.2 billion in appropriations, this budget is US$320 million larger than the budget for 2013.  The amount allocated to education is 22% greater than last year while the budget for health is 21% greater.  Jose Figueroa, vice-chair of the Economy and Budget Committee, said that 60% of the budget is allocated to programs to reduce poverty and guarantee food security. He added that the budget assigns more money to health, education, affordable housing, and farm-to-market roads while guaranteeing the continuation of subsidies for electricity, water, and transportation for low income citizens.  Committee chair Walmaro Gutierrez also mentioned credit for producers and citizen security as priorities reflected in the budget.

However, opposition Deputy Maria Eugenia Sequeira accused the government of implementing social programs such as Zero Hunger “in a political way to exalt the cult of personality” around President Daniel Ortega. Sequiera asserted that 2014 is threatened by continued economic crisis in both advanced and emerging economies and by a deterioration in Venezuela’s economic situation and therefore revenues will not be sufficient to finance the public investment and social policies included in the budget.

Meanwhile, government agencies and international organizations appear to agree that Nicaragua’s growth rate for 2013 will be near 5% with a predicted rate of around 5% for 2014. Central Bank President Alberto Guevara said the Bank predicted that Nicaragua’s growth rate for 2013 will be 5% and that growth for next year will be similar. The UN Economic Commission for Latin America and the Caribbean (ECLAC) predicted that Nicaragua will probably reach 4.6% growth for 2013 sustained by growth in construction, manufacturing, commerce and public services.  CEPAL reported that Nicaragua is showing the fifth highest growth rate in Latin America, after Paraguay at 13%, Panama at 7.5%, Bolivia with 6.4% growth, and Peru with 5.2%.  The International Monetary Fund (IMF) was more conservative pegging Nicaragua’s 2013 growth rate at 4.25% while noting that the country’s macroeconomic situation was “favorable.”

Economist Alejandro Arauz told Informe Pastran that the agricultural sector grew 6.3% in 2013 with an increase in production for traditional crops like corn and beans and non-traditional crops like honey, cacao, chia, root crops, and other vegetables, making up for the drop in price on the world market for coffee, traditionally Nicaragua’s principal export crop.

Central Bank President Guevara pointed out that exports dropped in 2013 by US$28 million from 2012 mainly because of the drop in coffee prices but this drop would have been much greater if exports from the nation’s free trade zones had not risen by 12%, from US$1.6 billion to US$1.8 billion by October, with the year’s total FTZ exports expected to reach US$2.1 billion.  Exports are expected to reach a grand total of US$4.6 billion which includes FTZ exports for which the country receives no tax benefits and ordinary exports for which it receives substantial export tax revenue. This year beef was the leading export, followed by gold, with coffee coming in third.  Ovidio Reyes, general manager of the Central Bank, added that economic activity in the country increased by 10% in 2013 with dynamism seen in construction, fisheries, investments, and remittances.  Remittances (money sent home by Nicaraguans living abroad) are expected to finish the year with a record of US$1.1 billion. (Informe Pastran, Dec. 11, 13, 16; El Nuevo Diario, Dec. 12, 14; Radio La Primerisima, Dec. 13)

3. Illegally hooked up electricity customers have to “legalize”

On Dec. 15 the 180 day grace period for electricity consumers hooked up illegally to Nicaragua’s electricity grid to put themselves in compliance with the six month old Energy Stability Law ended. Residents have been forming long lines at the offices of the electricity company for days having postponed until the final moment arranging a payment plan and installing a functioning meter. The company estimates that it loses US$50 million yearly due to illegal connections not principally by poor barrio dwellers but by commercial and agricultural enterprises and also due to technical faults in the lines.

Marvin Pomares of the Consumer Defense Institute said that some 230,000 households have illegal connections and only 25% of those have been able to “legalize” their electricity consumption.  He asked for a three month postponement of enforcement of the law which establishes fines and even jail time for those who do not pay their fines.  Pomares said, “People are frightened; they’re afraid they will end up in jail because they are confused,” not realizing that legalization is free and the penalties will be applied only to those who earn three times the minimum wage and consume more than 200 kilowatt hours per month. Jail time is reserved for those who illegally consume more than US$390 worth of electricity per month. 

According to the UN Economic Commission on Latin America and the Caribbean (ECLAC), Nicaraguans pay the most in Central America for their electricity at US$0.28 per kilowatt hour.  Of the 920,326 customers of the Spanish-owned electricity distribution company TSK Melfosur, some 697,176 use fewer than 150 kilowatt hours per month and receive a government subsidy.  (El Nuevo Diario, Dec. 14, 16; Radio La Primerisima, Dec. 16; La Prensa, Dec. 15)

4. Indigenous denounce invasion by “colonizers”

Indigenous from the territories of Wangki Twi, Twi Yahbra, Amasau y Prinsu, in the North Atlantic Autonomous Region (RAAN) denounced the invasion in their areas by “colonizers” from the Central and Pacific regions of the country when they met with regional authorities, representatives of government institutions, and civil society organizations at a gathering sponsored by the Masangni Cooperative of Professionals and the Foundation for the Autonomy and Development of the Atlantic Coast of Nicaragua (FADCANIC).

At the gathering, noteworthy for the presence of women and young people, Daysi Clevan Pantin said that the colonizers are taking more and more of their lands, adding, “Those people, the colonizers, are transforming the traditional world of the indigenous people; there is no security; we fear for our lives.” She stated that people cannot go out securely to their fields because “the colonizers are heavily armed… [so] we are demanding that the government urgently carry out a cleanup plan in which we women are prepared to participate.”  She went on to say that the colonizers chop down 500 hectares at a time in order to make pasture to graze cattle, adding, “The water is running out. No one stops the colonizers who daily destroy more forest and it is not considered by the government that these practices mean more poverty for our communities.” 

Meanwhile, Colonel Nestor Lopez admitted that, while the Army has dedicated substantial forces to controlling illegal logging in the nature reserves and indigenous territories, those efforts have not been enough to stop the devastation.  He said that the Army’s Ecological Battalion in September prevented 90 families from setting up new farms in the Bosawas Biosphere Reserve.  Lopez said, “They were 90 people, each with two, three or four family members, ready to settle with their plastic tarps, axes, machetes, hammers, pots and pans, beans and everything with which to confront adverse situations.”  He added that often colonizer families are sent by others to create the conditions and “once they are settled [those who sent them] begin to open up the forest.”  It is estimated that just since 2010, the Bosawas has lost 150,000 hectares of forest.

On the other hand, between 2007 and 2012, the government’s National Reforestation Campaign on 94,448 hectares has planted trees, managed the regeneration of native plants, and set up agro-forest and agro-pasture systems, principally in degraded zones in high risk watersheds.  This has improved the quality of life for over 70,000 families in the departments of Managua, Leon, Chinandega, Matagalpa, Jinotega, Esteli, Madriz, Nuevo Segovia, Masaya, Granada, Carazo, Rivas, Rio San Juan and the North and South Atlantic Autonomous Regions.  (El Nuevo Diario, Dec. 10; Radio La Primerisima, Dec. 12)

5. Women’s and Children’s police stations increase as do solidarity volunteers

Deputy Director of the National Police Javier Maynard and Erlinda Castillo, chief of police of the Women’s and Children’s Police Stations, attended the 7^th National Conference of Voluntary Solidarity Promoters in Managua. Maynard told the group that 61 Women’s and Children’s police stations were inaugurated in 2013 for a national total now of 153 stations providing attention in cases of violence against women and children. Castillo said more than 100 investigators were added this year and the stations were strengthened with the hiring of civilian personnel specializing in psychology, social work, and legal expertise. Maynard also reported that there are now 4,527 volunteer solidarity promoters, 50 of whom are men. The promoters groups, which were formed in 2008, have conducted 62,414 preventative and proactive activities throughout the country including door to door trainings concerning women’s and children’s rights to be free of violence.  Castillo reported that there have been 58 murders of women and girls in 2013, mostly in the North and South Autonomous Regions and the departments of Matagalpa and Jinotega. (La Prensa, Dec. 13)

6. Sugar is Nicaragua’s fifth highest export

Nicaraguan sugar exports rose 4.6% in 2013 and December deliveries will raise earnings to a total of US$220 million, making it the country’s fifth export product in terms of value. This represents half a million tons of sugar, a record according to Mario Amador, president of Conazucar. If one includes the products derived from sugar such as molasses, rum, ethanol, and alcohol, the total value is expected to reach US$300 million. Sugar was the first product commercialized under the Central America and European Association Accord (free trade agreement) that went into effect on Oct. 23.  Also boosting sugar exports is the fact that sugar forms part of the cooperation between Nicaragua and Venezuela under the Bolivarian Alliance for the Peoples of Our Americas (ALBA). Venezuela is the biggest importer of Nicaraguan sugar followed by the US, Canada, Taiwan, and Europe.  A Venezuelan cargo ship picked up 15,000 tons of raw sugar at the Port of Corinto last week as part of Nicaragua’s payment for oil under the Ruta ALBA-Petrocaribe project. (El Nuevo Diario, Dec. 12, 2013)

7. Regional environmental groups meet on mining issues

Nicaragua hosted a meeting of Central American environmental groups on the issue of mining with an emphasis on non-compliance with indigenous and tribal rights. The group issued a statement saying the rights of these groups “are being systematically ignored through the violation of domestic laws and international conventions on these matters.” The organizations demanded the creation and implementation of policies of development which “respect fundamental human, economic, and social rights, above all the right to life, water, and a healthy environment.”

Nicaragua, which has not seen the large scale protests and militarized suppression that have occurred in Honduras, El Salvador, and Guatemala, has seen a rapid growth in the amount of territory in which exploration or exploitation concessions have been granted. The Humboldt Center, an environmental organization, reported at the meeting that 12% of Nicaraguan territory is under metal mining concessions of one type or another for a total of 16,886.17 sq. km. That is up from less than 9,000 sq. km. in 2009. There are 48 active gold and silver concessions and 126 inactive ones belong to 54 mining companies. Tania Sosa, an advocacy officer for the Humboldt Center, said that 4,156.02 sq. km. of environmentally protected areas are under concession with another 6,784.9 sq. km. where concessions are being sought. (La Prensa, Dec. 11)