Nicaragua Network

1. Government works to increase mine safety following Bonanza tragedy
2. Nicaragua to be “malaria free” by 2020
3. Drought slams sales of fertilizers and agrochemicals
4. Army celebrates 35th anniversary
5. Nicaragua signs agreements for oil exploration in the Pacific
6. Artificial reefs and mangrove reforestation improve the environment
7. Mystery explosion in Managua turns out to be a meteor
8. Economic Briefs

1. Government works to increase mine safety following Bonanza tragedy

During his speech commemorating the 35th anniversary of the formation of the Nicaraguan Army, President Daniel Ortega also addressed the mining tragedy in Bonanza the previous week which cost seven artisanal gold miners their lives. Twenty-two miners were rescued after a tunnel collapsed. Ortega said, “We have to make greater and better efforts, based on this experience, to maximize safety measures where artisanal miners are working. We have to identify the areas of high risk and coordinate the lower risk areas. He said that artisanal mining should gradually be merged with industrial mining with the fair market purchase of the artisanal mines by the mining industry so as to lower the risk to miners. He pointed out that progress has been made in this direction in La Libertad, but that in Bonanza, where artisanal miners are working underground in old mines that have been closed decades ago, the risk is much higher. Ortega did not rule out continued search for the missing miners when weather conditions improve. Miners and firemen called off the search when continued tunnel collapses due to the monsoon rains made the search for survivors too dangerous to continue.

Government spokeswoman Rosario Murillo also promised support for the families of the miners who lost their lives in the Cormal mine collapse.  “We are going to support these families who lost loved ones,” she said. “We have already identified their homes, where they are, and through our partners in the region, the Commander (Daniel Ortega) has instructed us to ensure solidarity support enabling them to contemplate life with support and affection as befits the Nicaraguan family.” On Sept. 5 Murillo reported that the government and the 220 artisanal miners in Bonanza had agreed to initiate a geological study to determine safe areas for artisanal mining. She also announced the arrival in Bonanza of a brigade of mental health specialists to provide counseling for families affected by the tragedy. Of the 20 artisanal mining deaths in the past two years, the old Comal mine in Bonanza has accounted for nine, or nearly half of the fatalities. (Radio La Primerisima, Sept. 3,5: El Nuevo Diario, Sept. 3,5)

2. Nicaragua to be “malaria free” by 2020

The Ministry of Health (MINSA) is implementing a plan against the spread of malaria with the goal to eradicate the endemic disease by 2020 and to be certified malaria free by 2025. According to Martha Reyes, director of Disease Prevention for MINSA, this year there have been 661 confirmed malaria cases, 20 more than during the same period last year. However, it has been two years since the last fatality due to a 6% reduction in cases of plasmodium falciparum, the most dangerous type of malaria.  More than 1,224 volunteers have participated in health brigades to control mosquito breeding sites. Early detection and treatment have also been improved. Las Minas and Bilwi in the North Caribbean Autonomous Region account for 85% of Nicaragua’s malaria cases. 

MINSA reported that it has fumigated between 5-6 million homes in the whole country, but that is not enough to stop mosquito transmitted diseases including malaria, dengue and Chinkungunya, especially in Managua. Better maintenance of the sewers and raised awareness of the population about disposing of trash are also needed. In Managua during the rainy season, the mid-day torrential rains create flooding and a scarcity of potable water. Ruth Selma Herrera, former head of the Nicaraguan Water and Sewer Company said, “First, there aren’t enough trees to regulate the velocity of the water and, second it rains a lot in a short amount of time and there isn’t adequate drainage to control the water flow which undermines the soil causing water line breaks affecting much of the water infrastructure. It also creates wet areas where mosquitos breed. (Radio La Primerisima, Sept. 5; El Nuevo Diario, Sept. 5; La Prensa, Sept. 3, 8)

3. Drought slams sales of fertilizers and agrochemicals 

Marketers of fertilizer and agrochemicals report that their sales are down 10-15% and they fear sales will drop farther this year due to the drought. The rainy season ends in October and many farmers, especially those producing beans, corn and rice, have not planted crops due to lack of water. Last year fertilizer and agrochemical companies imported US$153.2 million worth of products. With inventories full, this year they only imported US$80 million. Juan Jose Cobos, general manager of Sagsa Disagro, which dominates 42% of the fertilizer market said, “What we perceive with our clients is that the planting of rice will be reduced 30% and if the reservoirs are not filled, it is likely that next year they will reduce planting by 50%; and they use a lot of fertilizer and agrochemicals.” He also said that because of the drought, producers are substituting peanuts, sorghum and sesame which require less water and agricultural inputs. When farmers can’t even do that, they grow grass. Roberto Medrano, producer of coffee and basic grains, said that the only thing he is buying fertilizer and fungicides for is his coffee, because he wasn’t able to plant basic grains. “Producers are cautious and waiting for the weather. We’ll evaluate and then decide if we need fungicides. Cobos said the slow sales are “basically due to the producers not knowing what is going to happen in the next few weeks, so they’re not investing. More than 30 companies import and market fertilizer and agrochemicals. (El Nuevo Diario, Sept. 8)

4. Army celebrates 35th anniversary

On Sept. 2, President Daniel Ortega recognized the 35th anniversary of the formation of the Nicaraguan Army following the overthrow of the Somoza dictatorship in 1979. Spokeswoman Rosario Murillo read the presidential proclamation which notes the pride of the Nicaraguan people in the Army “which rises and turns with the revolution and is at its roots popular, Sandinista, and anti-imperialist.” Murillo added, “Our army emerges from the liberation struggle and maintains its vocation of free homeland, peaceful homeland, and on the paths of progress and general welfare.” The following day, speaking during a military parade celebrating the anniversary, Ortega called attention to the significance of September in Nicaraguan history. Not only is it the month of Central American independence from Spain, but also the anniversary of the Battle of San Jacinto when the US filibusterer, William Walker, was defeated.  Sept. 2 itself is also the anniversary of the date that Gen. Augusto C. Sandino declared the Army of Defense of National Sovereignty in the struggle to end the US occupation of Nicaragua. He said the Nicaraguan Army “is today the armed forces of a people united in constructing a homeland and liberty and to guarantee the peace, stability, economic development and the fight against poverty.” Murillo also congratulated Miriam Morales as the first woman to achieve the rank of colonel in the army. Morales joined the Sandinista Front for National Liberation in 1976 and was wounded in battle in Matagalpa in 1979. She is 55 years old with two grown daughters and is a founder of the Nicaraguan Army.

In other military news, Costa Rican Foreign Minister Manuel Gonzalez, in Sept. 4 testimony before the Costa Rican legislature’s Foreign Affairs Committee decried Nicaragua’s military purchases from Russia. “The recent acquisition of equipment and powerful military armaments by Nicaragua from Russia is considered as a threat and source of great concern,” he said. Relations between the two countries are poor and between them they have three cases before the World Court dealing with border issues. The Russian equipment recently purchased by Nicaragua is assigned to Drug War enforcement in the Caribbean where the World Court last year granted Nicaragua sovereignty over a large area claimed by Colombia. Last weekend Nicaragua seized 231 kilograms of cocaine, a boat, and arrested a Nicaraguan and Costa Rican who were transporting it. Nicaragua has also begun operations in the Pacific to disrupt supply lines of the Sinaloa drug cartel, bagging 1,296 kilograms of cocaine, seizing seven vehicles and two boats, US$294,529, C$38,838 and arresting eight Nicaraguans and a Costa Rican. (Radio La Primerisima, Sept. 2, 3; La Prensa, Sept. 5, 8)

5. Nicaragua signs agreements for oil exploration in the Pacific

Nicaragua signed Agreements of Understanding with a British company Geoex International and Norway’s Statoil for surface (non-drilling) oil exploration in 32,000 sq. km. of the country’s Pacific coastal waters. Geoex, based in London, offers geophysical and geological research. This is the first time Nicaragua has offered contracts to explore for oil in its Pacific waters. Geoex will move a seismic research ship to the area to determine the geological and subsoil characteristics and from that knowledge will determine the oil potential in order to attract investors. Minister of Energy and Mines Emilio Rappaccioli praised the Norwegian company Statoil’s “great world class experience in the exploration and exploitation of petroleum resources.” Rappaccioli emphasized that both companies must still obtain government permits in compliance with the Special Law of Exploration and Exploitation of Hydrocarbons. (Radio La Primerisima, Sept. 4; El Nuevo Diario, Sept. 5)

6. Artificial reefs and mangrove reforestation improve the environment

A small artificial reef has become a refuge for marine life off the coast of southern Nicaragua, according to Fabio Buitrago, an ecologist investigating the 2.5 sq. meter pyramidal structure which stands 2 meters tall. “After 70 days it is filled with algae, sponges, soft corals, and there are four species of fish using the structure.” he said. The project is unusual because the artificial reef was placed in an area where the seabed is composed only of sand, an aquatic desert according to the scientist. “If the bed is a desert, the structure is like Las Vegas,” he said. Buitrago likened the project, which plans to install 1500 artificial reefs over five years in the San Juan del Sur Bay, to “reforesting the pasture.” The project is being implemented by the nongovernmental organization Aquatic Farms of Nicaragua and the Nicaraguan Diving School with the permission of the mayoralty of San Juan del Sur.

In other environmental news, students, government employees of state institutions and the municipalities of Chinandega and Puerto Morazan planted 6,000 mangrove seedlings as part of the 8th 2014 Mangrove Reforestation Event for the health of the ecosystem of Estero Real. The event was sponsored by the shrimp company Seajoy. The project will plant a total of 53,000 mangrove trees along the coast northeast of the municipality of El Viejo. Fifth grader Francis Hernandez, who participated from the Buenos Aires school, said after the activity, “Here we are motivated to clean and maintain the beautiful panorama.” The mangrove forests are home to shrimp and mollusks.  (El Nuevo Diario, Sept. 8)

8. Economic Briefs 

The National Assembly approved a loan of US$14 million from European Investment Bank to fund six components of the National Program of Sustainable Electrification and Renewable Energy. The loan will pay for 39 kilometers of transmission lines in the Matagalpa municipalities of San Ramon and La Dalia. It will hook the Tumarin hydroelectric project into the national electricity grid, and will pay for a number of substations that will bring electricity to 600,000 people and businesses. (Radio La Primerisima, Sept. 3; El Nuevo Diario, Sept. 3)

Diplomatic officials accompanied 13 Dutch companies interested in the Grand Canal to a meeting last week with HKND, the Chinese company with the concession to build the canal.  The companies include those with expertise in locks, port terminals, canal security, insurance, and human resources and personnel training. Holland’s ambassador to Nicaragua said that many of the companies have offices in Mexico and Panama and are world leaders in their field. (Informe Pastran, Sept. 3)

Nicaragua kept its ranking of 99th out of 144 countries in the Global Competitiveness Index published by the World Economic Forum’s 2015 edition, the same ranking it earned in the 2014 edition. In 2013 and 2014, Nicaragua moved up 15 places in the index thanks to its “climate of security” compared to the costs of insecurity in the other countries of the region. Nicaragua was also recognized for advances in public health, attraction of investments, promotion of exports, penetration of mobile telephone service, and access to credit. The report did note that Nicaragua has the smallest Gross Domestic Product in Central America and called on it to improve “the protection of property rights, the quality of education, the quality of its ports, and judicial independence.”  Nicaragua surpassed Honduras this year with that country falling to the rank of 100. (El Nuevo Diario, Sept. 3)

Microfinance institutions hope to end this year with US$55 million for agricultural credit, benefitting 50,000 small producers. Fernando Guzman, president of the Nicaraguan Association of Microfinance Institutions said that despite the drought they hope to see an increase of 10% in microfinance loans. Microfinance increased by just 5% in the first half of 2014 due to the drought. Last year the sector grew by 25%. Loans this year are being made primarily in the “humid zones” because the risk is too high in the Pacific Coast “dry zones” where the annual rains came months late and are still sporadic.(El Nuevo Diario, Sept. 5)

The Central Bank reported cumulative inflation of 5.03% for the year, higher than the 3.99% registered in the same period last year. The higher rate is driven by increases in food, restaurants, hotels, and communication, plus rising oil costs. (Radio La Primerisima, Sept. 7)

While the prices of Nicaragua’s staple foods – corn, beans, and rice – remain high due to the drought, some other foods, notably potatoes, have dropped in price in Managua’s markets.  Prices for onions, chilies, and lemons have also fallen. (La Prensa, Sept. 8; Radio La Primerisima, Sept. 7)

Despite frigid relations between Nicaragua and Costa Rica, Costa Rican capital investment in Nicaragua has surged. In 2010 Costa Rican investments in Nicaragua totaled only US$2.43 million. By the end of 2013 they stood at US$67.7 million. (Radio La Primerisima, Sept. 7)