[NYTr] Nicaragua Network Hotline - August 8, 2007 Date: Mon, 13 Aug 2007 19:52:02 -0400 Via NY Transfer News Collective * All the News that Doesn't Fit Nicaragua Network Hotline http://www.nicanet.org August 8, 2007 Topics covered in this hotline include: 1. Union Fenosa and government sign a partial agreement of understanding 2. Ortega offers Washington missiles in exchange for medicine 3. Iran to finance multimillion dollar projects proposed by Nicaraguan 4. Aleman maintains his grip over the PLC, for the moment 5. Nicaraguan exports are up in first six months of year 6. Fifty-nine newly minted doctors return from training in Cuba 1. Union Fenosa and government sign a partial agreement of understanding On Aug. 2, after more than two weeks of negotiations, representatives of the Nicaraguan government and the Spanish multinational company Union Fenosa signed what was described as a partial agreement of understanding. The President and Vice President of Union Fenosa, Pedro Lopez Jimenez and Honorato Lopez Islas respectively, arrived in Managua from Spain on Aug. 1 so as to take part in the negotiations. Strangely, however, it was Lopez Islas not Lopez Jimenez that signed the agreement. Nicaraguan Energy and Mining Minister Emilio Rappaccioli and President of Union Fenosa in Nicaragua Danilo Lacayo Rappaccioli also signed the document. As part of the agreement, which is intended as a first step towards a solution to the ongoing energy crisis, Union Fenosa promised to invest US$33.7 million between now and 2011. During his comments to the press Lopez Islas made clear what the company hopes to achieve as part of the final agreement with the government: "Now we must all collaborate and broach the subject of the rate deficit... A procedure which establishes how the cost of producing energy is appropriately translated into the electricity rate must be established." The government, meanwhile, promised to introduce an Anti Fraud Law before November 30, 2007, which would penalize energy theft. (According to Fenosa, the company suffers million dollar losses each year as a result of energy theft.) The promotion of the Anti Fraud Law was the only concrete commitment made by the government in the partial agreement. The signing of the agreement came as a blow to consumer defense groups and other civil society organizations which demand that Union Fenosa be forced to leave the country immediately. 2. Ortega offers Washington missiles in exchange for medicine During his speech at the 28th anniversary of the founding of the Nicaraguan Air Force, President Daniel Ortega made an unofficial proposal to the US government to trade 651 of the 1,051 SAM-7 missiles currently under possession of the Nicaraguan Army for medical equipment and medicines. "Let's find a way to bring an end to this issue which has caused so much tension [between Nicaragua and the US]," he said. According to Ortega, his government recently proposed that the US government trade helicopters and airplanes for the Nicaraguan Air Force in exchange for 651 SAM-7 missiles, but has received no response from Washington. Despite requests from the US authorities for the Nicaraguan government to takes steps to strengthen the Nicaraguan armed forces so as to increase the effectiveness of the fight against drug trafficking, said Ortega, the US government is not willing to take him up on this previous proposal. The existence of the SAM-7 missiles has been a bone of contention between the US government and the Sandinista Party (FSLN) for the last several years. While the US authorities insist that the weapons represent a threat to regional security as they could fall into the hands of terrorist organizations, the FSLN and other groups opposed to US intervention say the weapons are necessary for the defense of national sovereignty. 3. Iran to finance multimillion dollar projects proposed by Nicaraguan government A five day official visit of a delegation of 21 Iranian government officials and businessmen led by the Iranian Energy Minister resulted in an agreement of bilateral cooperation. During its time in Managua the Iranian delegation held meetings with the Nicaraguan ministers and government officials responsible for agriculture, energy, health, water, housing and infrastructure and with President Daniel Ortega. At a press conference on Aug. 4 the Iranian government officials and representatives of the Iranian private sector made numerous commitments of financial and other support for over 20 social, economic and energy development projects in Nicaragua, all of which had been previously presented to the delegation by the Ortega administration. Among the commitments made by the Iranians are: to invest in the construction of an agricultural machinery assembly plant, a slaughter house and meat packaging plant, five milk processing plants and ten milk storage plants; the sale of agricultural equipment and machinery at preferential prices to cooperatives and small and medium producers; financial and technical support for the construction of four hydroelectric projects; financial support for the construction of two new piers in Port Corinto (Pacific Coast) and the construction of a deep water port on the Caribbean Coast (there is currently no international port on Nicaragua's Caribbean Coast); to provide the funds for the construction of 10,000 homes with long term low interest mortgages for poor families; the construction of a multi service health clinic in Managua; and the reconstruction of several health centers. The Iranian delegation also expressed interest in importing a number of Nicaraguan products including coffee, plantains and meat. During a cultural political event in Condega on Aug. 5, President Ortega announced that Venezuelan President Hugo Chavez has promised to collaborate financially so as to ensure the projects are successful. 4. Aleman maintains his grip over the PLC, for the moment On Aug. 3 the 25 deputies of the Constitutional Liberal Party (PLC) and the members of the PLC National Executive Committee elected Maximino Rodriguez as Coordinator of the PLC bench in the National Assembly. Some saw this victory for Rodriguez as a defeat for the PLC Honorary President Arnoldo Aleman, who is both former president of Nicaragua and a convicted criminal. (Rodriguez has openly criticized Aleman's leadership of the party describing him as a "tyrant.") Others believe, however, that the election result demonstrates that Aleman maintains a firm grip over the party and continues to impose decisions. A "body of advisers" to "support" Rodriguez in his position was suggested by Aleman and adopted. Although the names have not been released, anonymous source said that "they are all loyal Aleman followers and, as a result, Rodriguez will have no real power in his position. Undeniably there is strong opposition to Aleman's leadership from within the PLC. There is a strong and increasingly outspoken contingency, including several influential members of the party, which believes that Aleman only serves to divide the Nicaraguan Liberals. This contingency, led by Rodriguez, former PLC presidential candidate Jose Rizo, and former coordinator of the PLC bench Enrique Quiqonez, took part in a meeting led by the leader of the Nicaraguan Liberal Alliance (ALN) Eduardo Montealegre, former presidential candidate and arch enemy of Aleman, on Jul. 31. At this meeting, which was also attended by several PLC deputies and local government officials, Montealegre called on the PLC representatives to opt for Liberal party unity in time to guarantee a Liberal victory in the 2008 municipal elections. According to Montealegre the Nicaraguan people want a united Liberal alliance to stand together in the 2008 elections and to win "over 100 local governments including Managua. ... [And] if necessary," he went on, "I am willing to stand as Mayor of Managua." While it is difficult to measure how strong the anti Aleman contingency within the PLC is, it would appear that ALN and PLC unity is still not something which will be happening any time soon. A more likely scenario would be that a number of deputies and other party members break away from the PLC thus weakening the party significantly but not achieving the principal objective of creating one united Liberal front. Of course, wily politician Aleman should never be counted out and the defections could go the other way as well. 5. Nicaraguan exports are up in first six months of year Nicaragua's exports increased 19.75% during the first six months of 2007 as compared with the first half of 2006, according to the Center for Export Procedures (CETREX), a government agency. Exports for 2007 totaled US$752.4 million while the total for the first six months of 2006 was US$628.3 million. Coffee continued to be the country's principal export product, in spite of lower yields during the previous harvest (part of the natural cycle of coffee production). Coffee produced US$125.8 million in 2007 as opposed to US$154.7 million the previous year. According to CETREX, the next most important export products, after coffee, were beef, with a value of US$105.2 million, up from US$79.1 million last year. After beef, the other important exports were sugar, dairy products, gold, peanuts, beans, cattle on the hoof, alcoholic beverages, lobsters, farmed shrimp, fish and tobacco. A rise in world market prices for coffee, gold, beef, sugar and sea food along with higher productivity for some crops helps to explain the increase in exports this year. 6. Fifty-nine newly minted doctors return from training in Cuba Fifty-nine young doctors arrived in Managua from Cuba on August 4 and prepared to travel to communities in the North and South Atlantic Autonomous Regions and the Department of Rio San Juan for a year of internship and social service. Health Minister Maritza Cuan, who met the new doctors at the airport, said that this is the fourth generation of medical graduates since 1999 who have returned from training in Cuba. After completing their year of internship in community medicine under the supervision of Cuban doctors, the 59 will receive their degrees as general practice doctors and can specialize in Family Medicine in a two year program on the Caribbean Coast under the auspices of the Latin American School of Cuba. Cuan said that there are presently 1,500 Nicaraguans studying medicine in Cuba. She noted that this is the first group of doctors to do their internships in government clinics in their own country. 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. Our web site is: www.nicanet.org. 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