Nicanet - The Nicaragua Network

Nicaragua Network Hotlines for April 10, 2007

News topics covered in this Hotline include:

Topic 1: PPP Summit exposes tensions between Nicaragua and Colombia


The summit for Plan Puebla Panama (PPP) to be held in Campeche, Mexico on April 10 and 11 has brought to light some of the current tensions between Columbia and Nicaragua. Vice-president Jaime Morales Carazo and Foreign Affairs Minister Samuel Santos are representing Nicaragua during the summit while Colombia are represented by President Alvaro Uribe and Presidential Advisor Jose Obdulio Gaviria.

The PPP is a plan for North-South and East-West development to speed goods and resources from Asia to the East Coast of the US and Europe and from South America to North America. Its completion would change the face of Central America through huge infrastructure programs including highways, dams, and railroads or canals, and sweatshop assembly factories along the newly opened corridors. The PPP will split the Mesoamerican Biological Corridor which, with World Bank funding, was created to preserve North-South migratory routes for birds and for mammals such as the jaguar. The PPP was the brainchild Mexican President Vicente Fox in 2001. It has been endorsed by Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Mexico, with the Inter-American Development Bank as the principal funder. Colombia was added to the group in July 2006.

President Daniel Ortega complained that the PPP has its origins in Mesoamerican integration and Colombia does not belong to the region. He stated, "Colombia has been politicking with Honduras and Costa Rica to form alliances in order to strip Nicaragua of its territories in the Caribbean Sea, thus the presence of Colombia in this summit is disturbing." He said, "We want to make it clear that under no circumstances does our participation in the summit mean that we are recognizing the attempts by Colombia to take control of Nicaraguan territory in conspiracy with Honduras and Costa Rica which decided to set the border at the 15 th parallel, placing Nicaragua in a difficult situation." Ortega referred to a maritime agreement between Honduras and Columbia which would deprive Nicaragua of much of its Caribbean coastal waters. Nicaragua has filed a law suit in the World Court against Honduras.

Gaviria responded that Colombia is a full member of the PPP as of July 2006 and therefore the questioning of Colombia's participation in the PPP Summit is "a little out-of-place." Colombian Foreign Affairs Minister Fernando Araujo followed up with a communiqué stating, "While Nicaragua neglects the boundary agreements in full or partially, Colombia has developed its relations with bordering countries with respect and according to international law." The communiqué also reiterated Colombia’s claim that the San Andres Archipelago is Colombian territory backed by historical and legal titles. San Andres is a small island just off the coast of Nicaragua and claimed by both countries.

On April 9, Santos in an attempt to calm the waters, tried to clarify Ortega's statements stating that they were merely, "an explanation" regarding the territorial tensions between the two countries which have existed for decades regarding the San Andres archipelago and the Roncador, Quitasueño and Serrana Cays. Santos stated that Colombia's presence in the PPP summit wouldn’t bother Nicaragua, calling Colombia a "brother country" in the effort to "unite all of the countries" in the region.


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Topic 2: Bush's 'ethanol fantasy' causes price increase in land and fertilizers

Nicaraguan President Daniel Ortega, in a meeting with government officials who manage land and farming policies, announced the arrival of 12,950 tons of fertilizer from Venezuela, earmarked for small farmers of basic grains, sesame, coffee and other export crops. Ortega criticized US President George W. Bush. He attributed the 200 percent increase in the price of fertilizer to the "ethanol fantasy" promoted by Bush, which ultimately affects small farmers who do not have access to either capital or loans and who therefore are forced to produce less.

According to Ortega, Bush's campaign to produce ethanol has not only increased the price of the fertilizer, but also agricultural machinery and tractors. In addition the price for land suitable for the cultivation of sugar cane and corn has increased. All of this in the end creates hardship for agro-food production and creates inflationary pressures.

In response to the criticism by Ortega, US Ambassador Paul Trivelli, issued a press release arguing that the U.S. is "deeply committed" to poverty eradication, strengthened food production and supports agricultural diversification in Nicaragua. Trivelli cited Bush's statement that, "the best way to alleviate poverty in the world is through trade.”



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Topic 3: Venezuelan electrical plants "on-line" for Nicaragua


On April 6 the 32 electrical plants provided by Venezuela were connected to the power system and are ready to offer Nicaragua a total of 60 megawatts which will cover half the electricity deficit that currently plagues the country. In addition to this news, President Daniel Ortega announced that in the month of September another 32 power plants are scheduled to arrive from Cuba.

The total plan for the Cuban-Venezuelan cooperation in the power sector under the auspices of the Bolivarian Alternative for the Americas (ALBA), also contemplates the replacement of almost 2 million domestic incandescent lights for fluorescent ones which consume less electricity.

Cuban engineer Mario Gutierrez, who is in charge of the installation and assembly of these plants, made note of the fact that the first eight plants and their capacity to generate 15 megawatts, entered into operation this past February 15. However as reported at the time, Union Fenosa, the Spanish transnational which bought Nicaragua’s electricity distribution rights, refused to buy the electricity produced unless the government signed a contract for a fixed price per kilowatt hour. The government maintained that no contract was required.



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Topic 4: "Operation Miracle" concluded

Operation Miracle, initiated in March of 2006 will come to a close this month after sending the last 238 patients to Cuba and Venezuela to be operated on for cataracts and other eye diseases. Operation Miracle, in addition to providing free eye surgery was designed to exchange knowledge and technologies between professionals of the associated countries.

Sixto Ulloa, Coordinator of the National Board for Operation Miracle explained that the closing of the program is due to the fact that construction on a center for ophthalmology in Nicaragua has begun. The center will eventually be responsible for major eye surgery interventions in the country and at an affordable cost. The center will be located in the municipality of Ciudad Sandino, where a Cuban medical brigade will operate with surgical equipment, also donated by Cuba, worth close to US$600,000.

Ulloa, confirmed that, to date 3,200 people with limited economic resources have been operated on in Cuba and Venezuela at no cost to the patients. He stressed the fact that access to these operations is difficult in Nicaragua for the poor. In private clinics, the cost ranges between US$1,800 to US$2,000 for each eye.

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Topic 5: Oil Shipments from Venezuela arrive


Venezuela is providing Nicaragua with oil under the ALBA trade agreements. The agreement includes four million barrels of petroleum and derivatives in 2007. The Nicaraguan government promised a number of sectors that the second round of shipments was to arrive between March 31 and April 8, valued at US$15 million.

On April 3 the first shipment arrived in Corinto with 49,000 barrels of diesel fuel and 10,000 barrels of gasoline earmarked for public transportation in the urban centers, as well as for the 32 electricity generating plants sent by Venezuela. On April 4 another shipment with 80,000 barrels of fuel arrived. The third shipment carrying 24,000 barrels of diesel fuel was delayed for unknown reasons possibly until April 16. The government gave assurances that the shipment would arrive on April 8 and be distributed between Puerto Cabezas, Corn Island and Bluefields for the eastern part of the country.

Topic 6: Natural disaster alerts and warnings of possible catastrophes


Geophysics Director of the Nicaraguan Territorial Studies Institute Fabio Segura warned that the active fault line Nejapa-Miraflores, which runs right by an oil refinery, poses the potential to cause a major catastrophe. If the fault were to shift, producing an earthquake, it could create an oil spill and contaminate the land around the refinery as well as the underground water tables which feed into Laguna Asososca and Lake Managua.

Segura, also spoke of the irony or stupidity in the fact that only 35 year have passed since the last major earthquake and yet previous government officials and businessmen still constructed an oil refinery right next to a fault line and until now have not moved it to another location, "It is as if we are waiting for the next catastrophe," he said. He also made mention of a number of other regions with active fault lines where there is little attention paid to zoning rules or construction codes that might prevent a disaster. In conclusion he stated, "We are provoking disasters by not respecting the nature itself of the terrain, which can lead to disasters of terrific magnitudes."

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This hotline is prepared from the Nicaragua News Service and other sources. To receive a more extensive weekly summary of the news from Nicaragua by e-mail or postal service, send a check for $60.00 to Nicaragua Network, 1247 E St., SE, Washington, DC 20003. We can be reached by phone at 202-544-9355.