The plan to reduce subsidies on electricity tariffs could be executed within four years, between 2018 and 2022, and in coordination with the business sector.
The Ortega administration's plan is to start with revision of the current subsidy schemes and develop a strategy to reduce them gradually.
Bayardo Arce Castaño, adviser of Economic and Financial Affairs at the Presidency, explained: "...The IDB is going to lend us $65 million to make progress in the regulation of the electricity sector.The idea is that this reorganization take place between 2018 and 2022.It is not that tomorrow or the first of January of 2018 the subsidy will be removed or the rate lowered or raised, it is not like that.This is a four-year affair. "
The productive sector has indicated that the savings generated by the reduction in the price of oil should be applied to energy tariffs.
Although this proposal is gaining strength in the context of falling oil prices, the private sector and had actually raised the idea last year. It is expected that later this month it will be once again taken to the Bureau of Energy Sector in order to cover the $ 202 million in debt generated from loans for the subsidy, and to conduct a review of the electricity tariff.
A proposal has been made to demand a definite time frame from the Brazilian consortium Eletrobras and Queiroz Galvao to start the construction of the hydroelectric dam Tumarín, which has been announced several times but has never materialized.
Presidential adviser Bayardo Arce told Laprensa.com.ni that it has been suggested to the government of Daniel Ortega that a deadline be set for the start of the work, seeing as the project should have started in July and to date, the consortium has only demanded additional compensation without giving details on the start of the project.
Nicaragua and the concessionaire CHN have signed a concession agreement in which the Brazilian company promises to start construction in mid-2014.
The largest hydroelectric project in Nicaragua has so far read like a never ending story, as over the last few years a number of announcements have been made for the start of its construction, which until now has been hampered by lack of agreement on the tariffs that will be set by the Brazilian company for electricity sales.
While presidential advisor Bayardo Arce announced that the Spanish company has already sold its shares in the distributor Disnorte-Dissur, an industry spokesman has denied it.
Bayardo Arce Castano, economic adviser to the president of Nicaragua, announced yesterday that Gas Natural Fenosa had closed the sale of an 84% stake in Disnorte-Dissur-the remaining 16% belonging to the Nicaraguan state-without disclosing the buyer or the figures in the agreement.
Nicaragua has signed a loan agreement with India to build two power substations.
The transaction is part of the revival of bilateral relations between the two countries, said Bayardo Arce, presidential economic adviser.
"The loan will take effect this month, it is concessional, low interest (1 or 2 percent), with a five-year grace period and a term of up to thirty years", said Arce.