Nicanet - The Nicaragua Network

Nicaragua Network Hotlines for April 17, 2007

News topics covered in this Hotline include:

Topic 1: Non-Sandinista teachers demand raises


The Labor Ministry on April 13 gave striking teachers at seventeen Nicaraguan schools 48 hours to return to their classrooms or face firing. The Labor Ministry declared the strike, which had lasted for over two weeks, illegal. Ena Fuertes, a leader of the Union Sindical Magisterial (USM), the teachers’ union leading the job actions, said that her union received the notification but that it was null and void because the teachers had not declared themselves on strike but rather were holding a work stoppage.

Meanwhile, education in the country remained paralyzed as teachers decided to extend their stoppage indefinitely, maintaining their demand for a retroactive raise in salary of US$29 per month (from US$118 to US$147). On Friday, one group of teachers turned a list of demands over to members of the National Assembly in the hopes that the legislature would find a solution to the conflict because, union officials said, “the government had turned a deaf ear” to their demands. Union leaders did not deny rumors that some teachers might resort to a hunger strike in coming days. Fuertes claimed that 90% of the teachers in the country had stopped working.

In Jalapa there are serious divisions among the teachers. A teacher at the San Martin School, who belongs to the Sandinista teachers union known by its acronym ANDEN, said that many teachers in that city did not support the stoppage because when ANDEN had called strikes under previous governments the other union refused to support them.

Proposals for resolution of the teachers’ strike have come from various quarters. Economist Adolfo Acevedo recommended that half of the US$22.9 million that Nicaragua will not be paying annually to the Inter-American Development Bank because of debt cancellation should be used to double the planned salary raise for teachers. Because of the elimination of school fees by the new government, schools are facing large increases in their enrollment. Money has to be found by the Education Ministry to pay the salaries of these new teachers while making up for the money that parents had contributed to each local school. Very little remains for salary increases.


Return to top.

Topic 2: Construction of Venezuelan oil refinery in Nagarote confirmed

 NNicaraguan President Daniel Ortega and Venezuelan President Hugo Chavez have signed a memorandum of understanding to construct the Sandino-Bolivar petroleum refinery. The refinery will be located in Nicaragua in the municipality of Nagarote in the Department of Leon. It will process up to 150,000 barrels of oil daily with an initial cost placed at US$2.5 billion.

In statements to the Sandinista radio station La Nueva Radio Ya, Francisco López, president of the government-controlled oil company Nicaragua Petroleum (PETRONIC), confirmed that a Venezuelan team of technicians along with a specialist from the United Kingdom last week carried out an onsite feasibility study for the construction of the refinery, with all results being positive to continue with the project. According to Lopez, Venezuela Petroleum (PDVSA) and PETRONIC will create a committee of high level professionals in the area to supervise the project.

Along with the shipments of diesel, liquid gas and gasoline, as well as the electric generators sent by Venezuela, the refinery forms part of the cooperation agreements signed under the Bolivarian Alternative for the Americas (ALBA), promoted by Chávez as the alternative to the Free Trade Area of the Americas agreement (FTAA), promoted by the US.


Return to top.

Topic 3: Nicaragua to change vote on whale hunting

On April 11, the Costa Rican Whale Coalition organized a protest outside the Nicaraguan Embassy in Costa Rica against the killing of whales. The Coalition’s principal request was that Nicaragua change its vote on the International Whaling Commission regarding the killing of the giant ocean mammals.

Nicaraguan Ambassador to Costa Rica, Harold Rivas Reyes, greeted the protesters and delivered a communiqué from the Nicaraguan Ministry of Foreign Affairs explaining the decision by his government to “not support” whale hunting and revisit the treaties signed under previous administrations. Government officials under the administration of President Enrique Bolaños had expected “economic favors” from Japan in exchange for voting to allow whale hunting.

Similar protests were planned in other countries where Nicaragua had diplomatic representation. According to the organizers, activities were confirmed in Brazil, Colombia, Argentina, Chile, Portugal, Mexico, Spain, Venezuela and Bolivia. Miko Schwartzman of Greenpeace, an organizer of the protests, said, “We congratulate the government of Nicaragua and we will get this news out to the whole world. The whales will be better protected now that they can count on the vote of Nicaragua in the International Whaling Commission.”



Return to top.

Topic 4: IMF “under no rush” to reach agreement with Nicaragua

The IMF report on the Panorama of the World Economy indicated that Nicaragua will have an economic growth rate of 4.2% compared to last year’s 3.7%, being the only country in Central America projected to experience economic growth. Economist Néstor Avendaño pointed out however that the IMF projections were based on the estimates from the Bolaños government which did not contemplate the fall in coffee production nor the damages caused by El Niño on the production of basic grains. According to Avendaño the economic growth for this year will struggle to reach even 4%. The Nicaraguan National Bank has yet to make any public statements with respect to the IMF report.

Related to its forecasts, the IMF declared on April 13 that officials are under no rush to reach a new economic agreement with the Ortega government. The delegation that will continue negotiating the economic program is scheduled to arrive in Nicaragua sometime in late April or early May. Anoop Singh, director of the IMF offices in the Western Hemisphere stated, "Basically the macroeconomic figures show that the economy is quite strong in terms of growth indicators. We [the IMF] desire to give the new government the time it needs to develop an economic program, one that would really be 'its program'... certainly we trust that in the next months there will be a program."

Return to top.

Topic 5: Colombia explores for oil in disputed area


The conflict between Colombia and Nicaragua that flared up the week of the Plan Pueblo Panama (PPP) summit on April 9 and 10, when Nicaraguan President Daniel Ortega questioned the participation of his Colombian counterpart, Alvaro Uribe, and accused him of conspiring with neighbor countries to, "try to rob Nicaragua of its maritime territories" has broken out again. At the PPP summit, Colombia accused Nicaragua of not respecting treaties and arbitration judgments that it claims have established the maritime borders of the countries in the region.

The Colombian government has authorized the Norwegian multinational Inseis to continue petroleum exploration studies in the San Andres Archipelago and Providencia, precisely the area disputed by the two countries. The Colombian National Hydrocarbons Agency stated that before the end of 2007 a third exploration will be carried out to analyze the possible existence of oil.

Colombian Minister for Mining and Natural Resources Hernán Martínez claimed, "We are acting inside Colombian territory. We are not touching Nicaraguan territory. All our activity is being done east of the 82nd meridian line which sets the official boundary between the two countries."

Currently the lawsuit before the International Court of Justice, filed by Nicaragua in December of 2001 against Colombia is still in process. Under dispute is the sovereignty over close to 50,000 sq. km. of maritime territory in the Caribbean Sea which includes the San Andrés and Providencia Archipelagos as well as the Serrana, Serranilla, Roncador and Quitasueño keys.

Return to top.

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.