State run water company ENACAL was denounced for allegedly evading bidding processes, leaving them up to the discretion of the institution's chief executive.
The guidelines for the special procurement regime, resolution 147-12 PE was published in the Official newspaper La Gaceta, on December 4, 2012, which according to the president of the Superior Council of Private Enterprise, Joseph Adam Aguerri, goes against the provisions of paragraph six, Article 3 and paragraph 5, Article 5 of Law 737 which regulates Administrative Contracting in the Public Sector.
Nicaraguan businessmen in the construction industry are basing their optimism for 2013 on various public infrastructure projects, power plants, and buildings for offices or homes.
Laprensa.com.ni reports that "The Chamber of Construction of Nicaragua (CCN) is optimistic, despite the weak recovery of the U.S. economy, uncertainty in Venezuela over the possible disappearance of the president Hugo Chavez 's political arena and the possible worsening of the euro crisis. "
With advice from the Chamber Investment Funds of Costa Rica, the creation of real estate investment funds is being worked out.
The Nicaraguan Association of Stock Brokers (ASOBOLSA) has "scheduled a three-day seminar in late October, in which the industry will learn to organize and operate these investment funds."
Elnuevodiario.com.ni reports that "although it has been referred to in law since August 2007," the model of these Investment Funds has never been implemented.
During the first half of 2012 618.000 meters square were built, 52.8% more than in the same period in 2011.
According to the Central Bank of Nicaragua, 81% of the square meters were for residences, 10% for local services, 5% commercial and 4% industrial areas. In terms of location, 60% were located in Managua and 40% in the rest of the country.
The annual growth rate reached 48.8% nationwide, when comparing the 1,099,488 m2 built between July 2011 and June 2012, with the 738.699 m2 built in the same period last year. The most dynamism occurred in residential construction in Managua, with an annual growth of 65.3%.
With growth in infrastructure projects and general construction, companies in the sector are investing in improvements and expansion of their production capacities.
The companies Cementera Mexicana (Cemex) and Productos Industriales de Concreto (Proinco, SA) with investments of $5.8 million and $3.2 million respectively, are counting on increasing their operating capacities.
Nicaraguan businessmen from the construction industry forecast a growth of 20% by 2012.
According to the Nicaraguan Chamber of Construction in the first six months of the year alone, there was a 10.5% increase in the sector.
"Benjamin Spears, president of the Nicaraguan Chamber of Construction (NCC), said that housing projects, especially in the social interest segment, are the main factor accounting for the growth.
The capital, Managua, will increase its supply of hotel rooms from 2013 when three new hotels will be built.
Located in the area of the Rotunda de Jean Paul Genie, in the next few months construction will begin on a Holiday Inn hotel , said Benjamin Spears, president of the Nicaraguan Chamber of Construction.
"Jose Enrique Solórzano, operations manager of Holiday Inn , also in the capital, said that the new hotel of the same brand belongs to other investors." It is a Salvadoran group and I think it's a Holiday Inn Express, that is to say, a bed and breakfast '", writes Génesis Hernandez for Laprensa.com.ni.
In the first three months of this year 2012, private construction reached an annual average growth of 46.8%.
According to the Central Bank of Nicaragua, the sectors that contributed the most to this growth was the construction of residential housing with an increase of 59%, construction services (hotels, warehouses, hospitals, etc.), with an increase of 9.1% followed by industry with 6.2%, and commerce with 4.9%
Every year the demand for housing in Nicaragua grows by 15,000 families, but only 10,000 new housing solutions are built.
In Nicaragua, some 25,000 houses are needed annually to meet increasing demand, which increases by 15,000 families each year.
Over the last two years, the annual deficit has fluctuated between 5,000 and 15,000 homes according to business owners in the construction sector, while the accumulated historic deficit is about 700,000 housing units.
Construction industry representatives have asked the government to raise the ceiling applied to subsidies for the purchase of social housing.
The government maintains the position of not raising the price ceiling of $20,000, saying that it would not benefit low income families.
"The Special Law for the Promotion of Construction, Housing and Access to Affordable Housing defines as such those ranging in size from 36 to 60 square meters, but now the 60 square meters homes, because of rising costs of construction materials, are being sold between $22,000 and $27,000, falling outside the remit of the subsidy", reported Laprensa.com.ni.
They were built to be sold using government subsidies, but an increase in the cost of building materials has pushed their real price above the limit established by the law.
The Government is maintaining its position of not raising the price ceiling of $20 000, stating that this would not benefit poor families, but recognizes that it must find a solution to the problem.
The South Korean textile company Hansae Nicaragua S.A will be investing between 2011 and 2013 in order to expand its industrial park situated in Masaya.
The works for expanding the industrial plant by 60,000 square foot will be carried out in two stages, with the first stage starting in December.
The president of the Nicaraguan Chamber of Construction, CNC, Mario Zelaya, told Elnuevodiario.com.ni, "The project will start with 30 million square feet first and then with the other 30 thousand in 2013. It will involve a total investment of $25 million. The first phase will involve $15 million and the second $10 million. The contract has already been signed."
The Government will raise the ceiling of the subsidy value to include homes whose value is less than $30 thousand.
Currently the subsidy is granted for home purchases of less than 60 square meters and that are priced at less than $20 thousand.
Lucia Navas writes in his article for Laprensa.com.ni, "The business chambers argue that the value of building houses in the country has increased in general as a result of the price of construction materials reporting strong increases, therefore houses worth less than $20 000 no longer exist. "
The sector grew 3.3%, boosted by private and state investments.
For the first time in 5 years, the figures presented by the Central Bank showed a recovery in the real estate industry, one of the worst-hit by the global economic crisis.
Mario Zelaya, president of the Nicaraguan Construction Chamber, told newspaper La Prensa that they believe this recovery to be sustainable and not temporary.
Fercon 2011 will showcase the country’s leading real estate developments, as well as construction materials and techniques.
The event will take place between July 8th an 10th at the Crowne Plaza Conventions Center, with the participation of more than 100 national and international exhibitors, including real estate developers, builders, suppliers of construction materials and decorators.