Nicaragua Network Hotlines for March 13, 2007
News topics covered in this Hotline include:
- Chavez visits Nicaragua as part of Latin America tour countering Bush
- US company will study the infrastructure in Port Corinto
- FENOSA backed law to punish illegal connection to basic services receives protests
- National Budget of US$1.378 billion creates conflicts
- Government ready to negotiate with the IMF
- Farmers
call on government to stop forest destruction in Nueva Guinea
Topic 1: Chavez visits Nicaragua as part of
Latin America tour countering Bush
Venezuelan President Hugo Chavez made a surprise announcement from
Bolivia that he would be traveling to Managua to meet with President Ortega,
as part of his Latin America tour. Chavez began his trip on March 8 in Argentina
and continued to Bolivia, paralleling U.S. President George W. Bush's visit
to five Latin American countries, with a last minute decision to end his
trip in Nicaragua.
International television networks such as CNN, as well as local stations,
have covered the visits of the conflicting Presidents in a similar manner:
They show several excerpts from Bush's speeches and his responses to the
questions asked by the media in the press conferences, whereas the coverage
of Chavez, especially during his visit with Ortega, is only a few minutes
and focused almost solely on his criticism or verbal attacks aimed at Bush,
despite having spoken for more than an hour about the aid packages, alternative
trade agreements or government solidarity.
The pretext for Chavez's visit to Nicaragua, while Bush is scheduled to
be in Guatemala, was to approve the agreements signed under the framework
of the Bolivarian Alternative for the Americas (ALBA) trade agreement and
expansion of the bilateral cooperation between the two countries. His visit
also coincided with the closing of the first "Mixed Commission"
between the two countries, which started working this past 5th of March
in Managua. The commission agreed on a cooperation program that will allow
for US$430 million to be channeled to Nicaragua over the next two years.
To summarize the long list of how this US$430 million in Venezuelan aid
will be used: US$340 million will be earmarked for provision of petroleum
and other forms of energy to help resolve the power crisis that currently
plagues the country. The rest, US$90 million, will be used in various programs
for health, education, exports, development of agriculture and studies concerning
the production of electrical energy. In addition Venezuela will also pardon
US$22 million in debt that Nicaragua currently owes for previous shipments
of petroleum.
The Commission also approved the opening of the offices for the Social Economic
Development Bank (BANDES) in Managua with US$20 million tagged as "nonrefundable"
aid, US$10 million dollars to guarantee free, accessible health care and
education for Nicaraguans as well as another US$10 million to finance the
planting scheduled to begin in May.
To add to the work of the commission, Chavez and Ortega signed a memorandum
of understanding regarding the investment of US$2.5 billion over four years
for the construction of an oil refinery with the capacity to refine 150,000
barrels of crude daily. This refinery will turn Nicaragua into an exporter
of refined petroleum impacting its principal economic activities.
Return to top.
Topic 2: US company will study the infrastructure
in Port Corinto
The North American company, Global Insight, will carry out a study
of the infrastructure and modernization needs of the Port of Corinto, 150
kilometers to the northwest of Managua along the Pacific coast. The project
will analyze financial and environmental needs with the end goal of increasing
the competitiveness of Nicaragua's largest natural harbor. According to
the National Port Authority this project is part of an agreement to provide
technical assistance between the United States Trade and Development Agency
(USTDA) and the Government of Nicaragua. The agreement also contemplates
an operations study and evaluation of rates, security and traffic forecasts
for the next the 15 years. The study is aimed at designing future plans
for private and foreign investments in Corinto, which according to the Port
Authority will receive investments nearing US$500,000 to begin improvements
to the port. This announcement of U.S. “aid” makes an interesting
contrast with Venezuelan aid which is designed to benefit the poor whereas
US aid is designed to benefit US businesses.
Topic 3: FENOSA backed law to punish illegal
connection to basic services receives protests
The National Assembly approved the reform to article 237 of the
Penal Code, which stipulates jail time and fines for persons who have their
services of potable water and electricity illegally connected to the system.
Associations, citizen groups, social movements and other sectors announced
that there will be protests in the coming weeks demanding that it be overturned.
The Nicaraguan Center for Human Rights (CENIDH) strongly criticized the
decision by the National Assembly saying that it is as if they are "criminalizing
the poverty" in Nicaragua.
Wilfredo Navarro, Secretary of the National Assembly, in response to this
opposition stated that the law is not directed at persons in the popular
or marginalized districts nor intended to send them to jail, but rather
the law is geared toward large consumers with mansions, warehouses or production
plants.
Agreeing with Navarro, members of the Constitutional Liberal Party (PLC),
stated that the new Penal Code contains three articles that impose penalties
from six months to two years of jail time for top representatives of the
companies that provide public services, such as water, electricity, and
telecommunications if the normal or reliable provision of these services
is prevented or seriously obstructed. The measure to penalize illegal users
is backed by the Spanish transnational, Union Fenosa, which claims annual
loses of US$30 million in Nicaragua due to illegal connections, alteration
to the consumption meters and other problems.
Topic 4: National Budget of US$1.378 billion
creates conflicts
After two days of debates, on March 7th the National Assembly approved
the National Budget for 2007. The 66 votes to pass the budget came from
the Constitutional Liberal Party (PLC) and the Sandinista Party (FSLN).
The original proposal for the budget was elaborated by the previous administration;
however the Ortega government modified the proposal to include increases
of more than US$80 million for the social sector. With the approval of the
budget the government can initiate the negotiations with the IMF.
During the debates over the budget, Assembly members from Nicaraguan Liberal
Alliance (ALN) and the Sandinista Renovation Movement (MRS) withdrew from
the plenary session in an act of protest. Both parties alleged that they
were not allowed to present amendments. According to Sandinista Assembly
member, Walmaro Gutierrez, the Statutory Legislative Power establishes that
all motions to modify the budget have to be brought before the commission
during the first 20 days of the consultation process. This process, according
to Gutierrez, began and ended in November of last year; however it was extended
until March 1 due to the special circumstances created by the transition
of government.
Topic 5: Government ready to negotiate
with the IMF
The president of the Nicaraguan Central Bank (NCB), Antenor Rosales,
on March 9 publicly stated that the government is "ready" to initiate
negotiations with the International Monetary Fund (IMF). The priorities
for Nicaragua in the negotiations with the IMF will be: To maintain economic
growth, generate employment and reduce poverty. Rosales explained that in
previous conversations the IMF has not demanded anything from Nicaragua
other than "the willingness to initiate and develop" the negotiations.
Since 1990 Nicaragua has applied drastic structural adjustment programs
negotiated with the IMF, which according to Nicaraguan President Ortega
have created "more poverty, unemployment and hunger." Ortega has
stated that the country needs to sign a new economic agreement with the
IMF, however, he clarified that, "we will look for agreements that
correspond with our objectives" in order to benefit the poorest sectors
of the country.
Ortega has also said that his administration will seek "economic independence,"
which includes not being dependant on IMF programs in the future. Currently
Nicaragua depends on foreign aid to cover more than 80 percent of its needs
in order to maintain basic parameters for macroeconomic stability, such
as the control of inflation and international reserves.
Topic 6: Farmers call on government
to stop forest destruction in Nueva Guinea
Members of the Safe and Sound Association, an organization of farmers
of the South Atlantic Autonomous Region (RAAS) and the Department of Río
San Juan who are concerned about the ecology of their region, called on
the government to intervene to stop the indiscriminate logging there. José
Ramón Jarquín, the leader of the movement, said that members
had heard about the situation in Juigalpa, Santo Tomás, Acoyapa and
Villa Sandino, where the forests are gone and there is no water at all in
the streams once the dry season begins. He added that the same people who
destroyed the beauties of those regions are now destroying the RAAS without
any consultation with the people who live in the area.
The Safe and Sound Association met recently in the region of the Punta Gorda River with peasant farmers who live on the Cerro Silva Reserve. Jarquín said that “We are worried about the continued abuse of nature, especially because they are chopping down the last little bits of forest that remain.”
“We want to make our concerns public even though we are afraid of reprisals by those environmental delinquents,” Jarquín stated. He mentioned Edgar Suárez from La Union in the municipality of Nueva Guinea who bought a 90 acre property and is now cutting the trees on 68 of those acres, “destroying the great variety of life in that forest along with the tributaries of a river that runs through the property.” Another property owner, Nicolas Tercero, who owns 2,040 acres of virgin forest in the region of the Pejibaye River which is a protected area, “has announced that he will chop down the forest on 170 acres,” according to Jarquín. Finally, members of the Safe and Sound Association protested the actions of Francisco Sacasa, who is the representative of the RAAS in the National Assembly. They said that Sacasa has taken over thousands of acres along the Kukra and Caño Negro rivers “and we have proof that this fellow chopped down more than 170 acres of forest. What is sad is that he is a public servant!”
The farmers noted that the Cerro Silva, Indio Maíz, and Montes Verdes
Reserves are suffering because of the actions of these “exploiters
of nature.” Jarquín said that the association had presented
its protest to the local environmental ombudsman in Bluefields, adding that
“We consider that these people are violating our constitution and
laws and we demand a strong response.”
This hotline is prepared from the Nicaragua News Service and
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