Nicaragua Network

1. Volcanoes under observation
2. Mining resumes in Bonanza after violent protests by artisanal miners
3. International briefs: Germany, Russia, United States Navy, Wisconsin
4. Zero Hunger and Zero Usury in the news
5. First national sign language song festival held
6. Government highlights crime prevention and rehabilitation efforts
7. Economic briefs: new milk plant, Free Trade Zone jobs, exports up

1. Volcanoes under observation

Between Thursday May 7 and Monday May 11, the Telica volcano exhibited 46 explosions and seven minor earthquakes. But, volcanologist Jose Armando Saballos with the Nicaraguan Institute for Territorial Studies (INETER) said, “Telica’s activity can be considered normal. The explosions are small; they are not violent; they are not big; they do not present at this time any great danger to the population.” Experts at INETER said that the last measurements on May 10 indicated a drop in the temperature of the volcano although expulsion of burning material provoked small fires on the sides of the mountain. INETER also reported that measurements on May 8 showed levels of sulphur dioxide were below dangerous levels. About 2,400 peasant farmers and their families live near the volcano, according to Leon Civil Defense.

Authorities are also watching Nicaragua’s other active volcanoes, including Concepcion on the Island of Ometepe which has experienced several tremblers and as many as sixty small explosions in recent days. Government spokeswoman Rosario Murillo said that neither Telica nor Concepcion has expelled lava and that, if this were to occur, a higher level of alert would be declared and evacuations ordered. Ash has fallen on the communities of Cristo Rey, Los Angeles, and El Boqueron in the municipality of Quezalguaque and in the community of Guanacastal in the municipality of Posoltega. Murillo said that the Ministry of Health was setting up health posts in the area. She said that the population should remain calm and follow the bulletins from the authorities. (El Nuevo Diario, May 7, 11; Informe Pastran, May 7, 8, 11)

2. Mining resumes in Bonanza after violent protests by artisanal miners

Mining operations resumed in Bonanza, in the North Caribbean Autonomous Region, after being paralyzed for five days because of protests by artisanal miners who said that the Colombian-owned HEMCO mining company was not paying them enough for the gold in the ore that the miners sold to the company. The crisis was resolved after several hours of dialogue between the protesters and the government. One protester was killed and ten persons, half of them police officers, were injured in confrontations on May 6 between the small scale miners and the police. A press release from the National Police said that when officers attempted to disperse the protest which was blocking traffic, they were attacked. When the police employed tear gas, the protesters responded with gun fire. Police arrested 33 people and confiscated explosives.

HEMCO officials said that looting by protesters had resulted in losses of at least US$3 million and news reports indicated that suspension of operations for five days had meant approximately US$1 million in lost revenue. Stores in Bonanza were closed and some basic products became hard to find. HEMCO said, “For the last seven years, HEMCO has been developing our Bonanza Model for the development of artisanal mining which establishes a series of policies among which are the relocation of miners to safe zones, training, social programs, and construction of plants that process the ore without mercury… which has meant an investment of more than US$25 million.”

The Union of Cooperatives of Artisanal Miners said that HEMCO had paid miners for the period April 27 through May 3 and noted in a communique that “The disturbances caused the suspension of the collection of ore and also damage to the information system for six days, which meant that some miners did not receive their pay on time, directly affecting the population, truck owners, store keepers, the mining company and the government.” The protest was led by a group of artisanal miners who maintained that their leaders had taken the side of the company and they continued to affirm that they would not sell their ore to HEMCO which they accused of cheating them in the chemical analysis in HEMCO laboratories that determine how much gold is in the ore they bring in to the company.

While Jose Adan Aguerri of the Superior Council of Private Enterprise (COSEP) condemned the protests as “acts by a group of vandals,” Evelyn Taylor, a Sandinista deputy in the National Assembly, said that the miners work very hard under harsh conditions and want a just pay for the ore they extract. She said that HEMCO should sit down with them and dialogue about a better price. (El Nuevo Diario, May 6, 8, 11; Informe Pastran, May 6)

3. International briefs: Germany, Russia, United States Navy, Wisconsin

President Daniel Ortega met over the weekend with Klaus Krämer, Head of Regional Development Policy for Central America and the Caribbean of the German Federal Ministry for Economic Cooperation and Development with whom he discussed projects of collaboration between the two countries. Members of the German delegation announced that they were opening a €100 million line of credit for projects in Nicaragua and the rest of Central America in the areas of potable water and sanitation, increasing access to electricity, renewable energy, environmental protection, and others. Among the projects in Nicaragua is a three year €6 million investment in the expansion of Managua’s sewage treatment plant which will make use of biogas resulting from the sewage treatment process, expand sewers to one million Managua residents, and help clean up the waters of Lake Xolotlan (Lake Managua). (Nicaragua News, May 8, 11; Informe Pastran, May 7, 8, 11)

General Julio Cesar Aviles, head of the Nicaraguan Army, represented Nicaragua in Russia at the celebrations on May 9 marking the 70^th anniversary of defeat of the Nazis in World War II. He met with Russian Defense Minister Sergei Shoigu, Chief of the General Staff of the Armed Forces Valery Gerasimov, and Director of the Federal Antidrug Service Victor Ivanov. The Nicaraguan Army said in a communique that they “talked of subjects of common interest and of the friendly and cooperative relationship that exists between the armed forces of the Russian Federation and the Nicaraguan Army” as well as the fight against drug trafficking, organized crime and attention to natural disasters.  (Nicaragua News, May 11; Informe Pastran, May 11)

The USNS Comfort, a United States Navy hospital ship will dock at the Port of Bilwi, Puerto Cabezas, for a week as part of a mission that will take the ship to eleven countries of the Caribbean, Central America and South America. The ship has 250 beds and carries 100 doctors including primary care and nine other specialialities. The doctors expect to perform 100 surgical operations while they are docked in Nicaragua. (El Nuevo Diario, May 11)

Members of the Nicaraguan Army’s Civil Defense Force visited Wisconsin from April 21 to 25 to learn about responses to natural and man-made disasters from the Wisconsin National Guard. Wisconsin has been a sister state with Nicaragua since the 1960s. Lieutenant Colonels Moises Hodgson, Marlon Moreno, and Andres Rizo and Major Sergio Corrales visited the Emergency Training Center at Volk Field where they observed simulations of rescues from collapsed buildings. They talked about future plans for joint training sessions where they could interchange experiences and methods of work. Brig. Gen. Mark Michie said that the Wisconsin National Guard would have much to learn from the experiences of the Nicaraguans. (Informe Pastran, May 6)

4. Zero Hunger and Zero Usury in the news

On May 5, government spokeswoman Rosario Murillo announced a re-launching of the Food Production Package Program, also known as the Zero Hunger Program, which has assisted thousands of families throughout Nicaragua. Murillo said that 12,000 women will receive training as participants in the newly designed program under the Ministry of the Family Economy. She added that the System of Production, Consumers, and Commerce has held meetings with the poultry sector to analyze the current capacity of that sector which has in the past provided the chickens for the Zero Hunger production package and the Family Economy Ministry has met with the pork producers sector about their participation. Women who participate have traditionally been provided with hens and a rooster, seeds, trees, fencing materials, and a pregnant cow or pig.  On May 11, Murillo announced that this week 650 rural families in the departments of Rio San Juan, Boaco and Matagalpa will receive their production packages while families in urban areas in Madriz, Boaco, Chontales, Esteli, Nueva Segovia and Chinandega will benefit from the Healthy Yard Program, which does not include large animals.

In related news, the government announced that women who participate in the Zero Usury Program are being trained to manage small businesses by the Nicaragua National Technological Institute. Murillo said the goal is for the women to break the poverty cycle by providing better tools for thousands of female heads of household. The women will receive five different classes which will be held May 25 to 29. More than 200,000 Nicaragua women have benefited from the Zero Usury Program during the last 6 years. (Nicaragua News, May 7; Informe Pastran, May 5, 6, 11)

5. First national sign language song festival held

On May 9, the National Association of Deaf People (ANSNIC) held the first National Sign Language Song Festival at the Ruben Dario National Theater in Managua in honor of the 29th anniversary of the Association. Twelve hearing people were chosen by ANSNIC to present their favorite songs in sign language. The best interpretation was chosen by a jury composed of a person connected to the theater, a deaf person, and a sign language interpreter, based on the clarity of the signing and the emotions expressed by the singer while signing. The festival was held to promote the involvement of the hearing community with Nicaragua’s deaf community. Catalina Chavez of the Movistar company, a sponsor of the event, said that the festival “brings together at one time persons who are deaf and not deaf in one space for entertainment, interaction, and education.” [Nicaraguan sign language (INS) was developed by deaf children themselves in the 1980s and was considered by linguists a rare opportunity to study the origins of a new language.] (El Nuevo Diario, May 9)

6. Crime prevention and rehabilitation efforts highlighted

There were a number of items in the news during the past week on crime prevention and rehabilitation of those who have committed crimes. More than 150 at-risk youth participated in sports activities and motivational talks organized by the Juventud Youth Center in Managua. Pedro Rodríguez, Head of Youth Affairs Directorate said sports, motivational talks, and the firm support of parents have been the key to rescue and redirect at risk-young people. "The National Police is convinced that prison does not change young people, rather it is the rekindling of hope, employment opportunities, sports and education that make it possible", Rodriguez said.

In related news, the National Police organized a new workshop on violence and drug consumption prevention in the department of Granada. Captain Angelica Corrales, Youth Affairs Director, said the workshops encourage working closely with teachers, students, families and community leaders. "It is a preventive effort, where everyone plays a key role because public safety is the responsibility of all", she said.

Meanwhile, a new Production Facility with an open and semi-open system to promote the social reintegration of more than 400 prisoners was inaugurated this week in Tipitapa. Superintendent of the Nicaragua Penitentiary System Eleacer Bustamante said the new facility, valued at one million dollars, was built with funds seized from drug traffickers and administered under the strict guidelines of the Assets Administration Law.

And finally, Nicaragua Supreme Court President Alba Luz Ramos, in her capacity as President of the Central American and Caribbean Judicial Council, will participate in the Seminar on Children and Violence to be held in France in June of this year. Magistrate Ramos said that at the meeting she will highlight efforts undertaken in Nicaragua to promote full protection of children rights, as well as the implementation of inclusive programs for young people at-risk. (Nicaragua News, May 6, 7, 11)

7. Economic briefs: new milk plant, Free Trade Zone jobs, exports up

On May 7, President Daniel Ortega and head of the Mexican Grupo Lala Eduardo Tricio inaugurated a US$50 million dairy plant at San Benito in the municipality of Tipitapa. Lala is one of the biggest companies in the dairy sector in Latin America and last year bought the noted Nicaraguan milk products firm Eskimo. Tricio said that the plant will position Nicaragua as the main Central American dairy exporter, generating more than 1,000 new direct jobs in the country. During his remarks Ortega said Nicaragua is a safe country, open to investors and stated, “We welcome all investments that contribute to the creation of decent jobs and help fight poverty.” He added that Nicaragua must work with small farmers and ranchers noting that peasant farmers have the traditional knowledge to which they must add technology “which will permit them to increase their productivity.” Tricio said that the inauguration of the plant “is an example of our commitment to the generation of employment and growth in Nicaragua.” (Nicaragua News, May 8; Informe Pastran May 6, 8)

Job losses in Nicaragua’s Free Trade Zones (FTZs) due to the expiration of Tariff Preference Levels (TPL) at the end of 2014 have been substantially less than originally predicted, according to economist Mauricio Peralta. [TPL permitted Nicaragua to export garments made with cloth or thread from outside the countries that were party to the DR-CAFTA trade agreement of 2005 to the US duty free. The preferences were set up to last ten years.] Peralta said last week, “At the beginning they were talking about losing 32,000 jobs in the FTZs; then FUNIDES [the Nicaraguan Foundation for Economic and Social Development], together with ANITEC [the Nicaraguan Association of the Textile and Garment Industry] predicted that the short term loss would be 7,000 jobs; and now it has been announced that the figure will not go above 4,000.” Peralta added that US Secretary of Commerce Walter Bastian had told Nicaraguan officials last year that Nicaragua now had the capacity to compete globally and hold on to its market in the US and “events in 2015 have proved him right.” Peralta said that the loss of 4,000 jobs will be cancelled out when the Canadian firm Gildan expands its workforce in the country by 10,000 during the course of this year. He noted, “Definitely the pragmatism in the negotiations between the government, the companies, and the unions of a multiannual minimum wage in the factories has helped.” (Informe Pastran, May 7)

Nicaragua’s goal of reaching US$3 billion in exports for 2015 appears within reach, according to the Center for Export Procedures (CETREX). As of May 4, with one-third or the year past, exports had reached US$951 million. That was US$25 million more than the figure at the same time last year. In 2014, exports totaled US$2.744 billion, not counting exports from the country’s Free Trade Zones, which totaled US$2.5 billion, but which do not produce the same tax revenues. Exports so far this year were led by coffee at US$185 million, beef at US$158 million, gold at US$110 million, and sugar at US$78 million. The United States continues to be the most important market for Nicaraguan goods purchasing US$352 million, followed by Venezuela at US$117 million and El Salvador at US$82.6 million. (Informe Pastran, May 5, 6)