TUESDAY, FEBRUARY 02, 2010
Nicaragua News Bulletin (February 2, 2010)
1. Inter-American Development Bank praises government's poverty reduction policies2. Electricity extended to 11,311 rural homes in 2009; a total of 31,836 in three years
3. Cases against Aleman and Montealegre pursued again; amnesty proposed
4. Nicaraguan medical brigade saves lives in Haiti
5. One Million Dollars for Affordable Housing
6. Ortega: Nicaragua will not recognize new Honduran government
1. Inter-American Development Bank praises government's poverty reduction policies
Daniel Zelikow, Executive Vice-President of the Inter-American Development Bank (IDB), visited Nicaragua for several days last week and praised the commitment to poverty reduction of the government of President Daniel Ortega. He said, “One of the factors that has led us to double the money for Nicaragua has been that the government has shown a capacity for administration and use of funds under its established priorities for reducing poverty. It's very important that we review how the IDB can continue to support Nicaragua. There is interest in doing that.” For this year the IDB plans to loan Nicaragua US$170.2 and Zelikow said that the IDB would be interested in increasing that to US$300 million in future years.
Treasury Minister Alberto Guevara said that of the US$170.2 million, US$42.5 would go to budget support, US$30.7 for the transportation sector, US$30.5 for sustainable electricity generation, US$10 million for tourism, US$30 million for expanded potable water delivery for Managua, US$10 million for projects related to climate change, US$10 million to modernize the government's financial system and US$6.5 million for regional electricity connection.
Opposition political leaders, however, criticized the government's economic management. Eduardo Montealegre, a leader of one of the Liberal parties and a former Treasury Minister, said that “The government is a bad investor and most expenditures of the government are bureaucratic and have no effect on economic growth.” Sandinista Renovation Movement (MRS) leader and former IDB official Edmundo Jarquin said that if the international financial institutions would adopt the position of many governments of cutting aid until the issue of alleged fraud in the 2008 municipal elections was resolved, Ortega would have to cede to the demands of the opposition with relation to the political and judicial systems and “restore the democratic rule of law.”
However, Vice-President Jaime Morales Carazo insisted that the issue of governability and a good investment climate were taken into account by the IDB in increasing its assistance to Nicaragua. He also said that he had spoken with Zelikow about the possibility of funding from the IDB to improve Nicaragua's seismic detection and warning network and to review and improve the nation's building code for earthquake resistance.
In his meeting with Ortega on Jan. 26, Zelikow noted that Nicaragua had made “efforts to maintain economic stability without which none of the projects in the different sectors would have been successful.” He gave importance to the assistance the IDB will provide for rural electrification and for the cleaning up of Lake Managua which he said will be one of the biggest projects of its kind in Latin America.
Zelikow is a U.S. citizen who has worked for J.P. Morgan Securities and in the U.S. Department of the Treasury before working at the IDB. (La Prensa, Jan. 26, 28; Radio La Primerisima, Jan. 26)
2. Electricity extended to 11,311 rural homes in 2009; a total of 31,836 in three years
The Ministry of Energy and Mines reported that its Rural Electrification Program in 2009 brought electricity to 11,311 homes in 245 rural communities benefitting 67,377 residents. It extended the power grid by 524.34 kilometers, investing a total of over US$9 million. In the first three years of the Ortega government, it has brought electricity to 31,746 rural homes.
Access to electricity has affected all areas of life in the communities. Homes are able to have light and refrigeration. Health centers can preserve vaccines, businesses and microfinance institutions enter the communities bringing even cable TV. Dairy and other family agricultural operations that use refrigeration can also expand. By 2014 the plan is to electrify 82.5% of rural homes with the help of international assistance.
In 2009, in the departments of Managua and Leon 7,360 urban homes were also electrified.
The Rural Electrification Program has included extending existing distribution lines but also construction of small hydroelectric projects, micro-generators, and installation of solar panels in isolated parts of the country. (Radio La Primerisima, Jan. 26)
3. Cases against Aleman and Montealegre pursued again; amnesty proposed
On Jan. 26 the Managua Appeals Court reopened two pending cases of fraud and theft of government property against former President Arnoldo Aleman, leader of the Constitutional Liberal Party (PLC). The proceedings on these cases had been stayed in 2006. The cases are known as the Narcojet case and the case of the heifers; both are cases in which Aleman is accused of diverting property of the state for his own use. The Appeals Court judges stated that the law which went into effect on Dec. 23 (mandating the timely resolution of cases) required them to rule in these two cases which had sat in drawers for four years. Two days later another similar case of fraud was added, this one known as the Mayco case.
Also on Jan. 26, Special Prosecutor Armando Juarez asked the National Assembly to lift the legislative immunity from former Treasury Minister and currently Assembly Deputy Eduardo Montealegre within 72 hours so that he could be prosecuted for his involvement in the allegedly illegal renegotiation of the government bonds known as the CENIs (Negotiable Investment Certificates). Wilfredo Navarro, First Secretary of the Assembly and a PLC deputy, said that the request would be blocked because it was a political case.
Deputy Adolfo Martinez Cole of the Nicaraguan Democratic Bench (BDN) said that the actions taken against the opposition leaders were an attempt to oblige them to negotiate the appointments of numerous high government officials under conditions favorable to President Daniel Ortega. He called on the members of the different Liberal parties to remain faithful to their pledges of unity. Supreme Court President Manuel Martinez (a member of the PLC) said, “President Ortega wants to keep Roberto Rivas in the Supreme Electoral Council for the next election fraud that he needs to do, so he is resorting to all these pressures.”
On Jan. 28 the Committee on Government, Human Rights, and Peace of the National Assembly approved and sent to the floor of the Assembly a bill that would grant amnesty to all government officials who served between April 25, 1990, and Jan. 9, 2007. That would cover the administrations of Presidents Violeta Chamorro, Arnoldo Aleman and Enrique Bolaños and would include both former President Aleman and former Treasury Minister Montealegre. The Assembly leadership, composed of seven members of different political parties and presided over by Sandinista Rene Nuñez, will decide if it will be put on the agenda for debate in the full Assembly. It would need the votes of 47 of the 92 deputies to pass.
The amnesty proposal was condemned by observers representing many different political views. Dr. Rafael Valdez of the Civil Coordinator, a coalition of numerous non-governmental organizations, said, “We repudiate and totally reject this attempt by the right to grant amnesty to the corrupt thieves that for 16 years stole from the people their right to a good life.” He added that at least US$900 million was stolen from the Nicaraguan state by Arnoldo Aleman, Eduardo Montealegre and a series of government appointees during the three administrations covered by the proposed amnesty and he said that this money could have built many schools, hospitals and houses for the people. (Radio La Primerisima, Jan. 26, 28, Feb. 1; El Nuevo Diario, Jan. 27; La Prensa, Jan. 28)
4. Nicaraguan medical brigade saves lives in Haiti
On Jan. 25, President Daniel Ortega, in consultation with the Nicaraguan Army, extended for eight days Nicaragua's humanitarian mission to Haiti. According to the army, in the 13 days Nicaragua's medical mission has been in Haiti they have given medical attention to 6,059 Haitians including 2,600 orthopedic treatments and surgeries, 1,859 general medicine, and 1,525 pediatric treatments. They performed 20 major surgeries and five amputations.
The 41 member medical brigade has 18 doctors who have labored under difficult conditions. In the previous week the brigade also distributed food to 5,000 people where they are working. Of the 135 people rescued from collapsed buildings, the Nicaragua search and rescue brigade rescued six of them. Mission head General Mario Perezcassar noted that the humanitarian assistance rendered by Nicaragua, Cuba, and Venezuela stands in contrast to the military build-up by the US, Canada and France.
Government spokeswoman Rosario Murillo announced that Nicaragua's third humanitarian mission to Haiti would depart on Jan. 26. The medical brigade of eight specialists would continue the work in Port Au Prince. The new group includes a surgeon, an orthopedist, an epidemiologist, a general practitioner, two nurses and two technicians. The plane carrying the group also carries medical supplies and food for the civil defense brigade.
A fundraising campaign for Haiti relief is being organized by the Nicaraguan Association of Microfinance, together with the Mejia Godoy Foundation and the Nicaraguan Red Cross. (Radio La Primerisima, Jan. 26; La Prensa, Jan. 26)
5. One Million Dollars for Affordable Housing
This year the Central American Credit Bank (Bancentro) plans to finance 1,500 affordable homes with funds totaling US$15 million provided by the Nicaraguan Social Security Institute (INSS).
The general manager of Bancentro, Carlos Briceño, stated that of the US$15 million requested, US$1 was already available from the INNS to be lent to house buyers. He explained that with the disbursement of funds from those paying into the INSS, the bank will have the capacity to finance the purchasing of houses costing less than US$10,000.
"These homes will have financing for up to 15 years and the interesting part is that they come with an exceedingly competitive rate of interest," Briceño said. Depending on the price of the house, the interest rate will vary between 5.5 - 7.5%. "Basically people can choose whichever affordable housing project that has been approved by the Housing Institute (INVUR)," he said.
Those interested in applying for this type of credit must be able to contribute a down payment of 10% of the total cost of the house. Some weeks ago, the Nicaraguan government came to an agreement with construction companies to provide, through a private bank, around US$45 million to finance the building of up to 4,800 affordable homes in the country.
Briceño said that the INSS funds will be used to fund two components: affordable housing under US$10,000, and homes with a value of up to US$30,000. Bancentro manages a diverse mortgage portfolio of close to US$50 million. (La Prensa, Jan. 25)
6. Ortega: Nicaragua will not recognize new Honduran government
President Daniel Ortega said that Nicaragua will not recognize Porfirio Lobo as the new president of Honduras because, he said, his government is “a continuation” of the military coup that overthrew former President Manuel Zelaya. Speaking at a ceremony where new ambassadors from Peru, Panama, Argentina, Palestine, and the Sahrawi Arab Democratic Republic presented their credentials, Ortega also condemned the amnesty granted by the Honduran Congress to those who carried out the coup. He said, “In Honduras the coup makers feel free and with full support to move around and promote new coups in Honduras and in the Central American region. We feel threatened and for that reason we cannot recognize the government of Honduras. This is a battle that will have to be waged in international forums.”
Opposition leader Eduardo Montealegre did travel to Tegucigalpa to attend the Jan. 27 inauguration of the new Honduran president according to a communiqué sent out by his party. None of the presidents from countries members of the Bolivarian Alliance for Our America (ALBA) attended the inauguration. However, the presidents of Panama and the Dominican Republic attended, along with high officials of several other countries including the United States.
Meanwhile, Mendel Goldstein, chief of the delegation of the European Commission for Central America and Panama, said on Jan. 28 in Managua that Honduras had been invited to participate in an informal meeting in Brussels to renew negotiations toward the signing of an Association Accord between Central America and the European Union which would include a trade agreement. He said, “We all know what happened in Honduras, the abandonment of constitutionality that caused a rupture [in talks] at the end of June, but after yesterday [the day of Lobo's swearing in] we are seeing a rapid normalization of the situation.” He said that he hoped they could keep to the schedule of completing and signing an accord before the May 18 European-Latin American Summit in Madrid.
The president of the Superior Council on Private Enterprise (COSEP), Jose Adan Aguerri, said that his organization supports the return of Honduras to the negotiations. He said COSEP would send a letter to President Ortega “as a signal that Nicaragua should continue as part of this process of association with the EU.” He urged Ortega to recognize the Lobo government.
Ortega, however, said in his speech to the new ambassadors that “the conditions [of the EU accord] are much harder than the agreement with the United States [DR-CAFTA].” He said the EU wants to convert Central Americans into consumers of all types of European products. He added that Nicaragua had insisted on the necessity of establishing mechanisms of compensation for the existing inequalities and had support from other Central American countries on that issue. (Radio La Primerisima, Jan. 28, 31; La Prensa, Jan. 26)
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