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.

From Iceida´s Annual Report 2009:

Introduction

Nicaragua is a constitutional democracy, with a directly elected president, vice-president and unicameral National Assembly, for concurrent 5-year terms. Nicaragua has four branches of government, the executive, the legislative, the judicial and the electoral. Daniel Ortega, the leader of the Sandinista party (FSLN), is the current president and therefore both head of state and head of government. Ortega's “Government of Reconciliation and National Unity” entered its third year of a five-year term in 2009. The FSLN has a minority in the Assembly, 38 out of 92 members, and there a stalemate between the Government and opposition on various issues, including the state budget, continues, as it has since 2007.

The 30^th Anniversary of the Sandinista Revolution was held on 19 July, but the president continues to be criticized by opposition parties, women's rights groups, as well as by foreign governments and donors, especially regarding the municipal elections of November 2008 and the continued disagreement with civil society organizations. A number of donors have reduced or cut their aid programmes, especially budget support. The president continues to strengthen ties with alternative donors especially the Bolivarian Alternative for the Americas (ALBA). Furthermore, the government had still not adopted a new national development policy before the end of the year. The citizens' confidence in public institutions continues to decline according to a survey on democracy in Nicaragua. Significantly more people feel disenfranchised, do not trust the democratic process and do not engage in politics than in 2005, especially women and youth. Some attribute this negative trend to the questionable municipal elections in 2008 and to the negative effect of the long standing “pacto” between the FSLN (Frente Sandinista de Liberación Nacional) and the PLC Partido Liberal Constitucionalista).

The GDP showed negative growth of -1% in 2009 down from 3.2% in 2008 and 3.8% in 2007. The GDP per capita was USD 995 in 2009 and the GDP (PPP) was USD 2,654. The twelve month average consumer price inflation rate ended at 4.3%, down from 19.9% in 2008. Remittances per capita were USD 132 in 2007 or close to 15% of GDP, compared to an average of USD 114 in Latin America and the Caribbean and USD 58 worldwide. Unemployment is estimated to be 5.9% in 2009 but underemployment was 46.5% in 2008.

Nicaragua maintains its ranking in the UNDP 2009 Human Development Index, is in 124^th place of 182 countries. Income disparity is great in Nicaragua with the income of the lowest 10% only 1.4% while the income of the highest 10% was 41.8% of the total in 2005. Corruption continues to be a serious issue and according to the Transparency International Corruption Perception Index for 2009 Nicaragua is in 130-138^th place out of 180 countries.

 

Development Cooperation between ICEIDA and Nicaragua

After having steadily increased its support to Nicaragua, ICEIDA had to make the difficult decision to close the Icelandic mission in Nicaragua. The decision, which was taken by the Government of Iceland in February 2009, was due to the adverse effects of the financial crisis on the Icelandic economy. The Icelandic mission in Nicaragua subsequently closed its offices on 1^st August 2009. This unexpected turn of events was the determining factor for the operation of ICEIDA in the country for the year.

Despite closing its country office in Nicaragua, ICEIDA continued to honour its obligations towards the Government of Nicaragua. ICEIDA funded social sector projects wound down before the end of the first quarter of 2009. However, support to the energy sector will continue until the end of 2012, at least, in accordance with the bilateral agreement on capacity building in the geothermal sub-sector.

Ambassador Sighvatur Björgvinsson, Director General of ICEIDA, visited Nicaragua in March, to meet with Samuel Santos, Minister of Foreign Affairs and Emilio Rappaccioli, Minister of Energy and Mines.

The ICEIDA project manager for the Geothermal Capacity Building Project, Gioconda Guevara, was after 1 August, the only ICEIDA staff member in Nicaragua. The decision was made to acquire office space for the project manager at one of the Nordic Embassies in Managua. The Finnish Embassy immediately offered office space and services, which was the ideal solution since Finland is also supporting renewable energy development in the region.

 

Support to Social Infrastructure

Several projects in the social sector were in various stages of preparation when it was decided to close the Icelandic mission in Nicaragua. Subsequently, all preparations were halted and the focus put on finishing projects already being implementated.

In 2009, ICEIDA supported, in cooperation with the Ministry of Education and the town council of Bluefields municipality, the final stages in the construction of 10 primary school classrooms. The handover of the last classrooms in Bluefields was accomplished in April. This project was intended for completion before the end of 2008, but was delayed because of unavoidable circumstances.

An extension to the Maternal House (Casa Maternas) in Bluefields was completed in the beginning of April. The construction of the extension was in cooperation with the public health department of the South Atlantic Autonomous Region (SILAIS-RAAS) and meets an increasing need for the services of the Maternal House in Bluefields.

 

Support to the Energy Sector

The implementation of the Geothermal Capacity Building Project continued during 2009, in accordance with the Project Document and in collaboration with ICEIDA's main counterpart in Nicaragua, the Ministry of Energy and Mines (MEM). The project's overall objective is to enhance the utilization of geothermal resources in Nicaragua by strengthening capacities at government institutions involved in the development of geothermal resources in Nicaragua.

The main activities carried out during 2009 in the context of the project's first component, Technical Assistance, were a series of seminars related to the evaluation, review and monitoring of geothermal exploration studies undertaken in geothermal fields and projects in Nicaragua, covering geology, geochemistry and geophysics. In addition, technical assistance was provided on the evaluation of geothermal well drilling data and reservoir engineering. The MEM Research Unit continued to receive technical assistance and accompaniment when carrying out geothermal exploration studies in high enthalpy areas. Field trips were taken at which in situ training took place with staff from the Geothermal Department of the National Autonomous University of Nicaragua (UNAN), León campus, as well as from private concessionaire companies that filed a special request to participate. During 2009, special attention was given to technical assistance regarding calibration of the MEM geochemistry laboratory and starting up geochemical analysis processes and methods for water as well as gas samples. An expert from Iceland Geosurvey (ISOR) taught the course, together with experts from LA GEO, a geothermal company based in El Salvador. On environmental matters ICEIDA´s counterpart is the Ministry of the Environment and Natural Resources (MARENA), for whom technical assistance consisted of the preparation of a General Guide to Environmental Impact Assessments (EIA). Further, a training workshop was held by an expert from the Icelandic Environmental Agency, who, together with MARENA technicians, identified and established priority activities to be undertaken in the year 2010 by the Ministry. 

The second Project component is Training and Capacity Strengthening. Seminars and workshops took place on the following topics: petrographic analysis; data analysis and management; geothermal well drilling; and reservoir engineering. In addition, the training on Geographic Information Systems continued. A two-week theoretical-practical training course was held in Mexico. Three persons from the MEM Geochemistry Laboratory participated, as did an expert from UNAN (León). The subject was Analytical Geochemistry, and the seminar was led by experts at the Geothermal Directorate of the Mexico Institute for Electrical Studies. It consisted of both theoretical and practical classes at the Los Azufres geothermal field in Mexico. A total of some fifty professionals from public and private institutions participated in these courses and seminars. In 2010, the main objective is to train staff at government agencies charged with monitoring and follow-up to geothermal projects. A number of MEM staff continued with their English classes. ICEIDA also financed the participation of a MEM engineer at the United Nations University Geothermal Training Programme in Iceland. A very important activity in this component was the one-week visit to Iceland by five Nicaraguan specialists (three from the Ministry of Energy and Mines and two from the Ministry of the Environment). During the visit they had the opportunity to visit geothermal fields and several institutions that work on environmental issues and the development of geothermal projects in Iceland.

The third Project component is Infrastructure and Equipment. The construction of the geochemistry laboratory, attached to the Ministry of Energy and Mines, was completed. This includes the procurement and installation of laboratory equipment such as a gas chromatograph, an ion chromatograph and an atomic absorption spectrophotometer, as well as lesser accessories, such as scales, crystal and reagents. The equipment has been calibrated and methodological validation has begun for the analysis of samples at the laboratory.

The fourth and last component is Administration and Evaluation. According to the Project Document an external mid-term evaluation had been scheduled to be held in late 2009. However, the Steering Committee decided to move the evaluation up to the second quarter of the year. A consultant from El Salvador with broad-based experience in geothermal development and a thorough knowledge of the energy sector in Nicaragua was contracted for the assignment. The mid-term evaluation allowed for identifying the progress achieved and difficulties encountered as the Project is implemented. Following the mid-term evaluation, the Steering Committee decided on some modifications to the Project in order to improve implementation efficiency and overall Project effectiveness. For the year 2009 Project execution was ninety-four percent (94%).     

 

Support to NGOs

Support for the institutional capacity building of the Nicaraguan women's organization AMNLAE, for the prevention, awareness raising and action against gender based violence, continued for the duration of the funding period, ending in September 2009.

The Garifuna dance group Spirit Dancers was supported to participate in the International Poet Festival in Granada. The Garifunas are an indigenous group from the Caribbean Coast of Nicaragua.

 

Cross-Cutting Issues - Gender

The geothermal sub-sector has had the tendency to be male dominated, with larger part of employees and students within the sector being men. A reflection of that fact can be seen by analyzing student data from the UTU Geothermal Training Programme. Between 1978 and 2008, 402 scientists and engineers from 43 countries all around the world, have completed the UNU-GTP six-month specialised courses. Thereof, only 67 were women, or 17%.

The situation in Nicaragua seems to differ from that. Information from ICEIDA´s geothermal project suggests that the gender distribution within the sub-sector in Nicaragua is quite special with women constituting half, or more than half, of staff and students in the field. Women constitute at least half of the employees working in the geothermal department at the Ministry of Energy and Mines (MEM) and at the geothermal laboratory. In the geothermal laboratory there are five employees, thereof three women, or 60%. In the geothermal department within MEM, the employees are six, half of whom are women. The gender ratio among the attendees of the seminars within ICEIDA´s project tells the same story. The participants in the seminar held by the MEM and a private geothermal company are evenly distributed by gender, with 50% of them being women. In the seminars held by the Ministry of the Environment and Natural Resources (MARENA), women most often constitute 60% of the participants and in some seminars with more environmentally related topics they constitute 80%.