Nicaragua Network

1. Canal briefs: concern about delay in studies; protests continue; Ramsar representatives visit
2. Demands continue for lower electricity bills
3. Backpack bomb explodes in Pantasma, killing two; another dies from gunshot wounds
4. Head of UN Office on Drugs and Crime visits Nicaragua
5. Extreme alert for Chikungunya
6. CARUNA to provide US$40 million in small production loans
7. Managua to improve storm drainage system
8. Government opens two tourist restaurants featuring Nicaraguan food and coffee
9. Ortega congratulates new Greek prime minister

1. Canal briefs: concern about delay in studies; protests continue; Ramsar representatives visit

With the continued delay in the release of the financial feasibility study for the planned shipping canal across Nicaragua and the lack of any information about possible investors, concerns are being expressed about whether the canal is viable. On Jan. 18, the South China Morning Post published an article which commented: “The proposed Nicaragua Canal may struggle to find private investors for financing as the project developer will find the case for a second waterway connecting the Pacific and the Atlantic a hard sell given current global trade patterns.” The article quotes Andy Lane of Container Transport International Consultancy as doubting the canal would be a good bet for investors. He notes that ships will be able to go only one way at a time in the Nicaraguan canal (in the Panama Canal ships can travel both ways at the same time) and also notes the increasing popularity of the Suez Canal route. He says that in his analysis the annual “return after 25 years would be less than 2 per cent” and he adds, “You can easily gain a lot more than 2 per cent by buying US government bonds.”

Local businesspeople also want to see the studies. Alfredo Artiles, president of the Nicaraguan-American Chamber of Commerce, said, “We can’t make decisions or take public positions until we know about the studies. That is the truth.” He added, “We have positive expectations as businesspeople, as Nicaraguans, but we need to see those studies on the environmental impact and how it can be financed … the technical studies and all the supporting documents and those studies today are not available.”

Groups of farmers and environmentalists opposed to the canal renewed their protests and road blocks at La Fonseca, La Union, and on the Island of Ometepe. Protests continued in El Tule even though the route of the canal has been modified and will no longer pass through that community. At Puerto Principe in Nueva Guinea, some 200 peasant farmers protested while environmentalists protested at Punta Gorda, the future Caribbean terminus of the canal.

Environmental groups announced that they will protest at two presentations planned by Paul Oquist, presidential adviser for National Policies, in Costa Rica and Panama on regional infrastructure projects.  Members of the National Council for the Defense of the Land, the Lake, and National Sovereigntywere recently in Costa Rica looking for support from environmental and other organizations against the canal. A spokesperson posted on a social media platform, “We are getting together half a million signatures of support to stop the canal and we will take our message to the meeting to confront all the governments of Latin America” at the III Summit of the Community of Latin America and the Caribbean (CELAC) in San Jose next week.

Meanwhile, representatives of the Ramsar Convention on Wetlands visited Nicaragua at the invitation of the government to visit wetlands near the planned route of the canal. After meeting with government officials and representatives of HKND (the company with the canal concession), Maria Rivera,Senior Advisor for the Americas at the Ramsar Convention Secretariat, said, “It is very, very positive that Nicaragua has called the convention” to study affected wetlands. “You are at the beginning; this is the moment to take measures, to miss nothing, to see everything and make the best decisions,” she said, adding, “Our recommendations will obviously be along those same lines.” A group of specialists traveled to the municipality of Rio San Juan to visit the San Miguelito and Los Guatusos wetlands. The visit was in answer to an invitation from the government as one of the requirements that Environmental Resources Management Company (ERM), which is doing the environmental impact study for HKND, has to fulfill. The Ramsar scientists will compare their results with information provided to them by ERM. Nicaragua joined the Ramsar Convention in 1997 and has nine Ramsar wetlands sites. Nicaragua has committed to ensure that the ecological character of those sites is maintained. (Informe Pastran, Jan. 19, 21, 23; El Nuevo Diario, Jan. 15, 16; La Prensa, Jan. 15, 21; South China Morning Post, Jan 18)

2. Demands continue for lower electricity bills

Consumer defense organizations and business groups continued to demand that energy bills be lowered based on the drop in petroleum prices on the international market. Nicaragua generates almost 50% of its electricity from the burning of petroleum. Ricardo Osejo, president of the Organization for the Defense of Consumers, said that the Nicaraguan Energy Institute should review each month the energy rates which have not moved since last August. Juan Carlos Lopez, director of the Legal Center for Consumer Assistance, said that electricity bills should drop by between 7% and 9% and give rate payers some breathing space.

Jose Adan Aguerri, president of the Superior Council on Private Enterprise (COSEP), said, “We are completely conscious of the fact that we have to be responsible and that no one six months ago expected the price of petroleum to be where it is today. That means that six months from now it could perfectly well give a jump up because these things move around.” But he emphasized that savings have been made in recent months that permit a reduction in electricity rates.

Eduardo Montealegre, leader of the Independent Liberal Party and former treasury minister, said that his party would continue to push for a reduction. He noted that between June and December, Nicaragua saved US$125 million and, after paying for the energy subsidy for low income households, there should be US$60 million left. Therefore, he maintained, the country is in a position to lower energy bills. He added, “Venezuela is going to continue to send petroleum to Nicaragua because it needs to sell.”

Government economic advisor Bayardo Arce said that the government will review rates during the first quarter of the year to see what happens on the world market among the Arab producing nations and those who are producing shale oil by fracking in North America. He said that there would obviously have to be a change because it is impacting the economy.

With relation to the price of gasoline and diesel, Marvin Pomares, national coordinator of the National Institute for the Defense of the Consumer, said that, while petroleum has dropped 56.25% in price globally, in Nicaragua gasoline has only dropped 27% at the pump and regular unleaded gasoline just rose in price. He noted that when the price of crude went up, the price of gasoline in Nicaragua quickly rose but now that the price of crude has dropped, the sector asks for time to make sure prices will remain low before lowering the price for consumers. (El Nuevo Diario, Jan. 26; La Prensa, Jan. 23, 25; Informe Pastran, Jan. 21, 22; Radio La Primerisima,Jan 22 )

3. Backpack bomb explodes in Pantasma, killing two; another dies from gunshot wounds

On Jan. 20, in Pantasma, Department of Jinotega, two people were killed by a bomb in a backpack and one by gunshot wounds. Pantasma councilman Adolfo Pineda said that at about 5:00pm in the afternoon two men arrived on a motorcycle at the home of Modesto Duarte with two backpacks, which they said carried supplies for members of an armed band that was located nearby. Duarte took them to the location and the men from the motorcycle gave Duarte the two backpacks and withdrew. Duarte gave the backpacks to the members of the armed band and one of them exploded killing two of the men. Duarte himself was found dead from bullet wounds 30 meters away. Councilman Pineda said residents assumed that the men on the motorcycle had detonated the bomb remotely and also shot Duarte.

Bishop of Jinotega Carlos Herrera said, “I call on the authorities to carry out the necessary investigations to clear up what happened with diligence and respect for human rights. Otherwise, citizens will lose confidence in the authorities who must safeguard the security of the population.” Marvin Castro, police chief of Jinotega, said that the incident was the product of an encounter between rival criminal bands in the area. (La Prensa, Jan. 21, 24, 25; Informe Pastran, Jan. 22)

4. Head of UN Office on Drugs and Crime visits Nicaragua

Yury Fedotov, executive director of the United Nations Office on Drugs and Crime (UNODC), visited Nicaragua on Jan. 21, and held meetings with President Daniel Ortega, Minister of Governance Ana Isabel Morales, Prosecutor General Hernan Estrada, National Police Chief Aminta Granera, and head of the Army Gen. Julio Cesar Aviles. Fedotov said, “It is well known that Nicaragua plays a very important role in the region against this scourge and it is precisely because of that that we are here to see how we can strengthen our collaboration.” He noted that Nicaragua was a country that had made excellent strides in “guaranteeing citizen security, reducing the crime rate and becoming the safest country in Central America.”  He added that he had “talked with government officials about the best way to take advantage of the lessons learned in Nicaragua to support the efforts of other countries—in promoting a model of community policing to provide citizen security.”

Nicaragua’s homicide rate has declined to 8.7 per 100,000 inhabitants and its robbery rate to 71.5 per 100,000 inhabitants. The visit of the UNODC director was unannounced. He arrived from Honduras where he had met with President Juan Orlando Hernandez. (Radio La Primerisima, Jan. 21; Informe Pastran, Jan. 20; La Prensa, Jan 21)

5. Extreme alert for Chikungunya

Nicaragua has declared an extreme health alert because of an increase in the number of cases of chikungunya, a viral disease carried by Aedes aegypti mosquitoes. The Health Ministry said on Jan. 26 that there had been 114 new confirmed cases in the previous three days. Managua is the department most affected, followed by Masaya, Chontales, and Carazo. Health brigades would carry out new fumigation operations to destroy mosquito nesting sites in standing water, according to the Ministry. The disease lasts about one week and causes fever and pain in the head, joints, and muscles. A total of 3,152 cases have been confirmed in Nicaragua since last July but there have been no deaths. (El Nuevo Diario, Jan. 26; Radio La Primerisima, Jan. 26; Informe Pastran, Jan. 26)

6. CARUNA to provide US$40 million in small production loans

Manuel Aburto, general manager of National Rural Fund (CARUNA), which provides credit for cooperatives and micro, small, and medium producers, said that it will have US$40 million to loan for the agricultural year which begins April 1. About 60% of the money will be directed to finance agriculture, including women producers, with the remainder reserved for microcredit loans to urban businesses including leather and footwear among others. He also said that the cooperative movement is going to strengthen its ability to provide technical assistance and to incorporate more cooperatives. “We finished 2014 with 5,100 cooperatives with more than 350,000 people, men and women, a sector that is a strong contributor to production for domestic consumption and for export,” Aburto said. (Informe Pastran, Jan. 23)

7. Managua to improve storm drainage system

The Managua city government is working on 21 storm drainage projects to reduce frequent rainy season flooding at critical points in the capital. The expectation is to complete them before the beginning of the rainy season in May. Municipal government general manager Fidel Moreno said, “This is a city than has very limited storm drainage and what we have is not sufficient for the quantity of water we have.” He said the projects will integrate better urban planning with the development “of a citizen culture that does not permit the drainage ditches to become trash dumps.” One project nearing completion is in the Oscar Turcios neighborhood where about 300 people have to be evacuated “nearly every time it rains,” according to Moreno.  The municipal government has budgeted US$4.27 million for the projects. (Radio La Primerisima, Jan. 21)

8. Government opens two tourist restaurants featuring Nicaraguan food and coffee

Last weekend the government opened two restaurants in Managua to introduce tourists to Nicaragua’s typical foods and its internationally renowned coffee. Located on Bolivar to Chavez Avenue, which cuts through the old central city, Casa del Maiz and Casona del Café (House of Corn and Coffee Mansion), will feature meals produced from crops grown by small and medium producers and a variety of Nicaraguan coffees set in décors indicative of rural Nicaragua. The menu of the Casa del Maiz includes the many different foods Nicaraguans produce from corn. The restaurants will be open from 11am-7pm on weekends. (La Prensa, Jan. 24; Radio La Primerisima, Jan. 24)

9. Ortega congratulates new Greek prime minister

President Daniel Ortega sent congratulations on Jan. 26 to newly elected Prime Minister of Greece Alexis Tsipris, leader of the Coalition of the Radical Left. “We celebrate your triumph and that of your people in yesterday’s elections,” Ortega said, adding that the “victory opened a path of hope for many human beings in Europe and the world.” He noted, “Your challenges are immense but you have the support of the great Greek people who have voted for your program, your proposals, and above all for your promise to assure routes toward employment. These will permit a reencounter with the good path that Greek families have demanded.”  The letter closed by saying that the Nicaraguan government and people sent affectionate greetings “to you, your family, your party, and your people in these moments of celebration and dedication to advance in the present and to create a better future.” (Informe Pastran, Jan. 26; Radio La Primerisima, Jan. 26)