Nicaragua

Due to the economic crisis in Iceland, it has been decided to terminate development cooperation with Nicaragua as of 2009. However, all signed agreements will be honoured and the ongoing Geothermal Project will proceed as planned until 2012.

Coinciding with the increased level of Icelandic development cooperation, the Icelandic authorities decided in 2004 to add to the number of partner countries. One of these was Nicaragua. After a favorable assessment of the possibilities for cooperation and prospects of successful operation, the Board of ICEIDA decided that preparations for development cooperation with Nicaragua should begin in 2005. After fruitful preparations throughout 2005, ICEIDA opened its first office in Latin America at the beginning of 2006. Logistical, legal and financial arrangements, as well as recruitment of local staff, were completed by mid-May and by the end of the year the office was operating in a smooth and efficient manner, being able to support current and future activities. In 2008 there were 11 ICEIDA´s employees in Nicaragua, thereof two Icelanders and one intern.

 

From Iceida´s Annual Report 2008:

Introduction

Nicaragua is a constitutional democracy, with a directly elected president, vice-president and a unicameral National Assembly. Daniel Ortega, the leader of the Sandinista party (FSLN), and his “Government of Reconciliation and National Unity” entered its second year of a five year term in 2008. The FSLN has a minority in the Assembly, and a stalemate between the Government and opposition on various issues, including the state budget, continued throughout the year.

Municipal elections were held on 9 November and dominated public discourse for most of the year. The elections were viewed as an indication of public satisfaction with the Ortega Government. Several actions by the Government and by the Supreme Electoral Council (CSE) in the run-up to the November elections were controversial and harshly criticised. In June, the CSE banned two political parties from participating in the municipal elections: the Sandinista Renovation Movement (MRS) and the Conservative Party (PC). This resulted in an outcry from many sources, including a joint declaration by the “Mesa de Cooperantes”, representing the donor community in Nicaragua. The Government took action against civil society, especially two vocal critics of the FSLN Government which raised great concern amongst donors. Shortly before the municipal elections, the CSE announced that no international or national independent observers would be allowed, raising concerns about the reliability of the municipal elections. The elections themselves were marred by reports of irregularities and claims of massive election fraud were immediately put forward. This sparked civil unrest in the country, especially in the capital Managua, where the opposition and FSLN fought in the streets over a period of two weeks in November. When the official election results were finally announced by the CSE after many weeks, the FSLN turned out to be the overwhelming winner, sweeping almost all of the important municipalities in Nicaragua, including the capital.

The political turmoil in Nicaragua in 2008 adversely affected the relationship between donors and the Government throughout the year. An example of this is that several donors did not pay out all of the budget support commitments before the end of the year and the Millennium Challenge Corporation (MCC), a USAID initiative, froze its funds to Nicaragua. A number of donors were also reviewing their programmes in Nicaragua by the end of the year, although most are committed to continuing their support. At the same time, Nicaragua continued to strengthen its cooperation with non-traditional donors, especially through the Bolivarian Alternative for the Americas (ALBA). Compounding the political situation in Nicaragua was the government’s inability to finalize its national development policy. A draft of a national development plan was circulated amongst donors early in the year, but by the end of 2008 the document had still not been formally adopted. The alignment of donor actions to government policies therefore proved to be very difficult in 2008, complicating an already sensitive situation.

The economy is continuing to show slower growth; down from 3.8% in 2007 and 3.7% in 2006 to 3% in 2008. The twelve month average inflation rate ended at 13.8%, down from 16.9% in 2007. This is alo lower than the IMF prediction in October, of 20.5%.

In the fight against poverty, Nicaragua seems not to be gaining much ground despite being one of the highest per-capita recipients of ODA for decades. Almost two-thirds (32%) of the state budget comes from ODA, according to the Nicaraguan Central Bank. The Human Development Index published by UNDP, places Nicaragua in 110^th place out of 179 countries in 2007, up from 112^th place in 2006. Income disparity continues to be a concern with the Gini Index for Nicaragua being 43.1, the poorest 10% only earning 2.2% of the income in Nicaragua, while the richest 10% earn 33.8% of the income. Corruption is a serious issue and according to the Transparency International Corruption Perception Index Nicaragua is in 134^th place out of 180 countries.

 

ICEIDA’s Development Cooperation

The ICEIDA development cooperation in Nicaragua more than doubled in terms of funding between years. Iceland’s cooperation in Nicaragua focuses on the social sector, in education, through the construction of classrooms on the Atlantic Coast, in health, through support to the network of Maternity Houses in Nicaragua and in the energy sector, through capacity building in the geothermal sub-sector.

In June, Geir Oddsson replaced Gísli Pálsson as the Country Director in Nicaragua. A Nicaraguan civil engineer was hired in February to supervise construction projects in the social sector. An Icelandic intern was employed at the office for five months during the year, from June to November.

The first annual monitoring delegation from ICEIDA Head Office visited Nicaragua in February, led by Ambassador Sighvatur Björgvinsson, Director General of ICEIDA. The delegation visited a number of ICEIDA projects, including some on the Atlantic Coast.

The financial crisis substantially affected the operation of the ICEIDA office in Nicaragua during the last quarter of 2008. All preparatory work was postponed or cancelled; this was especially significant for the detailed preparation of a multi-year integrated regional rural development project on the Atlantic Coast, which had been ongoing all year.

 

Support to the Energy Sector

 In January 2008, the ICEIDA offices in Nicaragua started the implementation of the “Geothermal Capacity Building Project” with the Ministry of Energy and Mines (MEM) as the main counterpart, according to the programme established in the project document. The project’s main objective is to increase the use of geothermal resources by strengthening capacities at the government institutions that are involved in the development of geothermal resources in Nicaragua.

One of the first actions taken within the project was the conformation of the steering and coordination committees and establishment of the tools for the monitoring of project activities and the administration of project funds. After the accomplishment of these tasks, the implementation of the three project components commenced in March 2008.

The main activities carried out during 2008 within the first component of the project titled “Technical Assistance” were several consultancies provided to the Geothermal Department of the Ministry of Energy and Mines (MEM), including the drafting of standards for geothermal development, the definition of the role and structure of a Research Unit for Geothermal Development inside the MEM, a short-term assistance to review the Nicaragua Geothermal Master Plan, the creation of a video on the geothermal potential of Nicaragua for investment promotion and awareness-raising. Some activities were also implemented together with the Ministry of Environmental and Natural Resources (MARENA), including the preparation of a guide for Environmental Impact Assessment methodology and technical assistance with the creation of management plans for protected areas, which have geothermal resources, permitting sustainable development. The publication, by MARENA, of five thousand brochures of the Environmental Impact Assessment decree and one thousand posters of the EIA process in Nicaragua, were funded as part of the awareness-raising and promotion of environmental law in the country.

Within the second component of the project, titled “Training and Capacity Building”, the main activities were seminars and workshops for technicians from MEM, MARENA (central and territorial offices), UNAN-Leon, private firms (Polaris, ORMAT and GeoNica) and the environmental units of municipalities with geothermal potential. The seminars were delivered by experts from Iceland Geosurvey (ISOR), the Geothermal Management of the Mexican Institute of Electrical Investigation (IIE) and environmental consultants from Costa Rica, on topics such as Reservoir Engineering, Geochemistry, and Clean Development Mechanism. A total of about eighty professionals from Nicaraguan institutions participated in these training courses. One of the most important activities in this component was an interchange of experiences with experts at LAGEO, El Salvador, in a week-long workshop on the Environmental Aspects of Geothermal Development. Twenty five experts from Nicaraguan institutions participated in this training at a LAGEO facility in San Salvador and in field trips to the geothermal projects in El Salvador. There was also a training workshop on geographic information systems, analysis and data management. A number of MEM staff is continuing their English language studies. Finally, ICEIDA funded the participation of a MEM engineer in the United Nations University Geothermal Training Programme in Iceland.

In the third component of the project, titled “Infrastructure and Equipment”, the construction and installation of a geological and geochemical laboratory within the Ministry of Energy and Mines was initiated. The project provides the most important equipment for the laboratory, such as chromatographs, spectrophotometers, titrators, as well as equipment for taking geothermal samples in the field. Furthermore, geological equipment, such as a petrography microscope, stereoscope, compass and GPS. It is expected that the laboratory will be ready to commence operations in the first quarter of 2009, following calibration of equipment and training of laboratory technicians.

 

Support to the Social Sector

In 2008, ICEIDA signed an agreement with the Ministry of Education and two town councils on Nicaragua’s Caribbean Coast to finance the construction of 20 classrooms in primary schools. At the end of the year, the construction of 10 classrooms in the municipality of Puerto Cabezas was completed and the remaining 10 classrooms under construction in the municipality of Bluefields are almost finished.

ICEIDA has continued supporting the Maternal Houses (Casas Maternas) that are a vital link in the government’s fight to decrease maternal and infant mortality. The houses, situated close to a health care centre or a hospital, provide women from the rural areas in the latter stages of pregnancy access to health care they would otherwise not get. The houses provide women with a free bed and food, as well as regular visits by a doctor and training in life skills. During birth they are attended by health care professionals. In 2008, ICEIDA started the construction of an annexe to the Maternal House in Bluefields, whose construction it financed in 2007. On account of these two construction projects it was necessary to hire a civil engineer for the social sector, to be in charge of the supervision of the projects on behalf of ICEIDA.

Funding for a one year project of institutional capacity development for the prevention, awareness and actions against gender based violence started in the autumn. A Nicaraguan women’s organisation, AMNLAE, is in charge of the project, which is located in a municipality in central Nicaragua. The main purpose of the project is to raise awareness among women and the public institutions about what gender-based violence is, its consequences and possible solutions to the problem.

In 2008, ICEIDA gave two small grants to an independent Nicaraguan coffee foundation, FUNIMODA. One grant was for the visit of Nordic coffee-bartenders to train their colleagues in Nicaragua and the other to do a survey on the national consumption of coffee. Both activities were aimed at increasing the internal demand for quality coffee with the objective of benefiting coffee farmers.

ICEIDA financed one edition of WANI – the Magazine of the Nicaraguan Caribbean, published by the institution CIDCA (Centre of Research and Documentation of the Atlantic Coast). WANI is one of the best academic magazines in Nicaragua. A quarterly, it specialises in the two autonomous regions on the Caribbean Coast of Nicaragua. WANI has been the most comprehensive venue for social and natural science carried out on the Nicaraguan Caribbean Coast, not only by the researchers of CIDCA, but also by individuals, institutions and universities both Caribbean, national and foreign. WANI can also be seen as an advocator and promoter of research carried out by scholars from the Caribbean, as almost half of the contributors to the magazine are from the autonomous regions.

The process of selecting an area for a possible regional development project on the Caribbean Coast in cooperation with the Ministry of Foreign Affairs and the Caribbean Coast Council of the Presidency came to a halt at the beginning of the year due to delays by the Government in publishing the National Development Plan.

Close cooperation with other donors has continued with the participation in sub-sector roundtables on education and in health. ICEIDA has been invited by the Caribbean Coast Council of the Presidency and the Ministry of Foreign Affairs to participate in the preparation of a new sub-sector roundtable, which will deal with the cooperation of government and donors on the Caribbean Coast.

 

Gender Mainstreaming

ICEIDA supports projects to increase the capacity of the Women’s Organisation, AMNLAE, to work on preventive measures, raise awareness of and oversee action against gender-based violence. AMNLAE is an independent civil society movement. The aim of the project is to reduce gender-based violence, domestic violence and sexual violence in Juigalpa, in particular endeavouring to raise awareness of both the women and the community’s institutions regarding violence, its consequences and possible solutions. The project supports the Nicaraguan government in its effort to achieve UN Millennium Goal No 3.

In addition, ICEIDA continues to support the development of the Maternal Houses (Casas Maternas) on Nicaragua’s Caribbean Coast. The Maternal Houses play a key role in the battle to decrease maternal and infant mortality. They are located close to health care centres or hospitals and are attended by women from the rural areas undergoing high-risk pregnancies. Here they receive medical care before and after birth, which they otherwise would not have had access to, as well as life-skills training. The Maternal Houses are an important factor in achieving UN Millennium Goals No 4 and 5.