Nicaragua Network

1. Law to lower electricity rates passed
2. Russian Foreign Minister visits Latin America including Nicaragua
3. US: “Very few property claims left”
4. Nicaraguans celebrate Palm Sunday and begin Holy Week
5. US Latin America budget increases 34.7% including “democracy promotion”
6. South Korea develops highway master plan for Nicaragua

1. Law to lower electricity rates passed

On Mar. 25, the National Assembly members approved a bill to lower the electricity bills of the country’s homes and businesses sent to them for “urgent” passage by President Daniel Ortega two days before. Ortega said, “This means incentives for both productive and service activities; it means incentives for commerce and thus translates into more jobs for the country.” The bill was approved on its first reading by 66 votes to 23 with Sandinista deputies voting yes and opposition deputies voting no.  After voting against the bill in its entirety, however, when it was time to consider each article separately, opposition deputies offered a number of amendments. But, there were no major changes in the bill by the final vote.

According to the newly passed law, some 980,000 ratepayers will see their bills go down but there will still be a savings to the country because of the precipitous drop in oil prices. Under the law, 35% of that savings will go to support the rate reductions; another 35% will go to the Ministry of the Treasury for programs fighting poverty; and the remaining 30% will go toward paying down debt acquired for the previous subsidy for households that consumed under 150 kilowatt hours per month. Opposition deputies said that they had wanted all the savings to go to lowering rates.

Jose Adan Aguerri, president of the Superior Council of Private Enterprise (COSEP), said that it was “good news that part of the savings will go toward lowering the rates.”  He stated that “the greatest achievement is that consumers who use less than 150 kwh will have their new lower rates frozen indefinitely… to perhaps the lowest rate in Central America for this level of consumers.” He added that the anti-poverty fund run by the Treasury Ministry will extend credits to the agricultural sector and this will provide a balance between social projects and increasing agricultural production.

The Ministry of Energy and Mining (MEM) and the Nicaraguan Institute of Energy (INE) will together establish the percentages of rate reduction for different sectors (residential, industry, retail, agriculture, etc.). The law mandates that both those who use less than 150 kwh and those who consume the most (and who have been paying the highest rates in Central America) will see their bills go down along with the other ratepayers. (El Nuevo Diario, Mar. 24, 25; Informe Pastran, Mar. 25; Radio La Primerisima, Mar. 25; La Prensa, Mar. 25)

2. Russian Foreign Minister visits Latin America including Nicaragua

Russian Foreign Minister Sergei Lavrov visited Latin America last week with stops in Cuba, Nicaragua, Colombia, and Guatemala. During his meeting with President Daniel Ortega in Nicaragua, the two agreed to continue to strengthen bilateral relations based on friendship and solidarity. Lavrov said that he saw many positive changes since his last visit to Nicaragua and added that these changes were very important because “the better the economic and social situation in the country, the more opportunities there are for large projects that we can develop within the framework of bilateral relations,” including joint business enterprises. Ortega said that the struggles against poverty and to improve the welfare of Nicaraguan families were the basis of the economic, political and social policies of the Sandinista government and that Russia assisted those struggles with a relationship based on peace, development, security, and the fight against drug trafficking and organized crime.

Lavrov also said, “We express our solidarity with the people of Venezuela and their legitimately elected government. We are against coups as a form for changing governments.” Ortega said that the recent executive decree issued by US President Obama against Venezuela [declaring it a security threat to the US] was a new form of aggression and he called on Obama to revoke it saying that that would be a positive signal for Latin America before the Summit of the Americas to be held in mid-April in Panama. Ortega said the meeting would be historic because Cuba, which for sixty years has been excluded from these events, will be in attendance.

In Guatemala, Lavrov attended a meeting of the Central American Integration System (SICA) and presented an “official application” to be considered an outside observer to the organization. He said that Russia had had relationships for some time with several of the member countries of SICA and hoped to develop such relationships with the others. He said that the economies of Russia and SICA members were “complementary” and commerce between the regions could be increased. Lavrov also proposed that the training center his country is installing in Nicaragua to fight drug trafficking and organized crime also train officers from other SICA members. According to Guatemalan authorities, half of the 6,000 violent deaths each year in that country are associated in some way with drug trafficking and organized crime activities such as extortion.

In related news, the head of the Nicaraguan Army General Julio Avilés said on Mar. 24 that the Nicaraguan armed forces had priced new naval vessels and airplanes from Spain, the Netherlands, Brazil, and Russia. He told National Assembly leadership and party caucus leaders that, “Nicaragua has the right to equipment to fulfil its obligation to defend national sovereignty” which, as a result of the November 2012 World Court decision, now includes more maritime territory which, he said, current equipment cannot properly patrol. Ideally, he said, the armed forces would like to acquire four new planes and four new naval vessels. He added, “On this subject, we have to take into account the economic capacity of our country and, given that situation, foreign assistance will have to play a complementary role for these acquisitions.” (Radio La Primerisima, Mar. 25, 28; El Nuevo Diario, Mar. 25, 26; La Prensa, Mar. 25, 27; Informe Pastran, Mar. 25)

3. US: “Very few property claims left”

Scott Hamilton, director of the Office of Central American Affairs at the US State Department, characterized opening discussions with Nicaraguan officials in advance of the July deadline for the US to issue the annual “property waiver” as “constructive, pragmatic, and respectful.” Hamilton met with Prosecutor General Hernan Estrada, Foreign Minister Samuel Santos and Vice Foreign Minister Valdrack Jaentschke on March 25. US law requires aid and multilateral loans to be cut off to any country that has confiscated the property of US citizens unless the Secretary of State issues a “waiver” citing “substantial progress” in compensating the US citizens. Following the triumph of the Sandinista Revolution in 1979, the revolutionary government confiscated properties of the dictator Somoza’s family and high-ranking officials in his government and National Guard. Later decrees foreclosed on properties that were mortgaged and abandoned with the majority of former owners having moved to the US. Many of them became naturalized US citizens, as did criminals from the dictatorship, and the US Congress has interpreted the law as covering people who were not US citizens at the time their property was confiscated.

Hamilton said, “For us to close this chapter is very important. We have seen advances in some pending cases and we have only a few cases left.” He gave no details on the number of pending cases, or their settlement, but said in the coming weeks he hopes “to hear positive news.” Hamilton said, “If we are able to resolve those cases, this process will be able to close,” referring to the annual waiver. More than 1,000 cases were originally filed by US “citizens.” Hamilton said 13 major cases have been resolved this year, one or two through mediation, and that “very few are left.”(El Nuevo Diario, Mar. 26)

4. Nicaraguans celebrate Palm Sunday and begin Holy Week

Hundreds of the Catholic faithful gathered on Mar. 29 at Managua’s cathedral and many more gathered at churches around the country to walk in traditional Palm Sunday processions marking the beginning of Holy Week. And on Monday, Mar. 30, another tradition was observed with the beginning of the exodus of thousands to cool off at swimming areas at ocean beaches and lakes and rivers during what is always the hottest time of the year in Nicaragua. Businesspeople in San Juan del Sur were happy to see the influx of Nicaraguans as well as foreign tourists noting that last year at Easter time the country was under a yellow alert during a spate of earth tremblors, including one that registered 6.2 on the Richter scale, and most Nicaraguans stayed home.

But the usual bad news was not lacking with the announcement that two people drowned on Sunday in the swimming hole at El Trapiche, near Tipitapa. One young man went into the water without knowing how to swim and his friend tried to save him, resulting in both drowning. In the municipality of San Juan del Sur, a hanging bridge collapsed on Sunday, injuring 12 people. According to former Mayor Jorge Sanchez, the bridge was finished in 2010 at a cost of US$260,000 and was designed to hold 100 people crossing on foot at a time. When it collapsed, 200 people were crossing on it.

Led by Granada Archbishop Jorge Solorzano, the first of three enactments of the Stations of the Cross in boats on Lake Cocibolca (Lake Nicaragua) was held on Monday, Mar. 30. The boats visit islands in the lake and shoreline communities where the residents set up the stations. Participants in the Ecological Stations of the Cross, as they are called, pray for the conservation of the environment, the cleanup of the lakes, and reforestation of forests. Solorzano said that the tradition started more than 30 years ago. 

The government announced that the security of citizens and visitors would be guaranteed by the deploying of 13,000 police officers throughout the country, but especially at beaches, religious gatherings, and on the highways. More health workers will be on call during the week, according to the Ministry of Health and workers will staff 165 mobile health posts at religious processions. Government employees received their April pay early in order for their families to enjoy the holidays. Government offices and private businesses in Nicaragua usually close for all or part of Holy Week. Government spokeswoman Rosario Murillo said on Mar 27 that the central government was working with the local Managua government to provide buses that would carry families from different neighborhoods of the capital to nearby beaches.

Eighty-one years ago Tuesday of Holy Week also fell on Mar. 31^st. Back then, as El Nuevo Diario remembered, Managua was a city of only 40,000 people who were preparing for Holy Thursday and Good Friday when the stores would be closed and everyone would attend religious services and processions. Few people in those years went to the beaches. At 10:20am an earthquake hit the city, bringing down the principal public buildings and thousands of homes. More than 1,500 people lost their lives. A young worker at the power plant turned off the electricity, preventing fires and saving many lives. President Jose Moncada declared martial law and moved the capital to Masaya.

But the United States occupation forces held real power in the country. Col. Calvin B. Mathews, head of the still-in-formation National Guard, ordered that Nicaraguan looters be shot, adding to the deaths from the earthquake itself. Twenty thousand people who lost their homes took refuge wherever they could—the poor in the parks and the rich on the US Marines’ golf course. An emergency committee was formed that included US Ambassador Matthew E. Hanna, Col. Frederick Bradman, Gen. Calvin B. Matthews and Lt. Col. Dan Sultan. The only Nicaraguan on the committee was Anastasio Somoza Garcia.

Managua Archbishop Jose Lezcano visited the families affected by the earthquake, traversing the ruins on foot to bring consolation. In contrast, Granada Bishop Jose Reyes said on Easter Sunday that the earthquake had been divine punishment for Managua whose residents led licentious lives. Managuans were enraged. The world showed its solidarity by sending aid through the Red Cross and messages of comfort from King Alfonso XIII of Spain, King George V of England, US President Herbert Hoover and many more.  Forty-one years later another earthquake would destroy the city just before a major holiday also—in that case Christmas. (El Nuevo Diario, Mar. 28, 29, 30, 31; Radio La Primerisima, Mar. 28, 33)

5. US Latin America budget increases 34.7% including “democracy promotion”

Assistant Secretary of State for Western Hemisphere Affairs Roberta Jacobson presented the Obama administration’s appropriations request for Latin America to Congress including so-called democracy promotion funding of opposition groups in Nicaragua, Ecuador, Venezuela, and Cuba. The administration is asking for US$1.99 billion, a 34.7% increase over the previous year. Much of the increase is for the Caribbean Basin Security Initiative (US$53.5 million) and other programs supposedly “to promote prosperity in Central America,” according to Jacobson.  “Support” for Haiti would be US$241.7 million. [Other press reports indicate Obama is greatly increasing aid to Venezuelan opposition groups. It is unclear whether Nicaragua opposition groups will get more money, but the US normally increases funding to anti-Sandinista groups prior to elections and President Ortega’s term ends in 2016. Nicaragua Network considers US democracy promotion funding to have little to do with democracy and more to do with manipulating elections to assert US hegemony.] Jacobson told the congressional hearing, “Part of the proposal also will be destined to programs to promote a free press and human rights in Cuba, Venezuela, Ecuador, and Nicaragua.” Informe Pastran commented, “The civil society groups working in opposition to Nicaragua’s Sandinista government have received good news: the government of the United States will guarantee them funding to continue their role.”  (Informe Pastran, Mar. 25)

6. South Korea develops highway master plan for Nicaragua

An expert delegation from the South Korean Ministry of Land, Infrastructure and Transportation presented a master plan to improve Nicaragua’s national road system to the Ministry of Transportation and Infrastructure. The plan runs through 2033. The master plan is the result of an agreement signed between the two countries in 2013 to strengthen cooperation in the areas of infrastructure, engineering and construction projects. The 20 year plan envisions the development of 4,200 kilometers of roads, including 1,100 kilometers of new roads with an investment of some US$5.2 billion. Continued road maintenance is guaranteed with US$1.5 billion of the total dedicated to maintenance. Among the priorities is to build new roads and establish a network connecting the Caribbean and Pacific coasts. Nicaragua is currently seeking Inter-American Development Bank loans to finance road improvements from Rosita to Bonanza and Pantasma to Wiwili. Both projects are consistent with the South Korean master plan. Nicaragua currently has 8,500 kilometers of roads. (La Prensa, Mar. 25; El Nuevo Diario, Mar. 26)