According to Fitch Ratings the reelection of Daniel Ortega as president of Nicaragua means stability in the country's economic policies.
EDITORIAL
Stability and economic and political continuity is what Fitch Ratings envisages for Nicaragua after the outcome of the presidential elections last Sunday, in which President Daniel Ortega was declared the winner, with 70% of the vote, according to a report by the Supreme Electoral Council.
The private sector will be asking the government to implement a differentiated rate for electricity companies in order to avoid losing competitiveness against the rest of the region.
In light of the governments refusal to reduce electricity rates, the private sector has proposed the creation of a lower differentiated rate for users who consume more than 150 Kw / h per month, which are mostly companies.
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.
On November 8 credentials will be presented to the South Korean government and efforts will start on promoting Nicaragua as an investment destination.
Elnuevodiario.com.ni reports: "...The foreign minister of Nicaragua, Samuel Santos, confirmed yesterday that Nicaragua will open an embassy in South Korea, and Jorge Arnesto Alm will be the ambassador to China, after presenting his credentials on November 8. "
Given the perennial delay over Tumarín, Nicaragua is considering reactivating and concessioning the Copalar hydroelectric power project which has a capacity of 150 MW and a cost of $213 million.
This is one of the projects in the the Nicaraguan Government's contingency plan which will be undertaken instead of Tumarín, in the case that it does not come to fruition.
The government of Nicaragua is exploring funding options for the development of a plan for taking advantage of the country's geothermal potential.
The plan is to conduct studies on the potential of this kind of generation and offer the project to private investors. "We are in talks with financial institutions to see if we can get funding for such studies, to encourage and develop geothermal energy," said Lorena Lanza, Deputy Minister of Energy and Mines.
Mexico's Cemex will build a new plant for grinding and packing under an agreement with the Compañía Nacional Productora de Cemento.
From the statement released by Corporaciones Nacionales del Sector Público (CORNAP):
Memorandum of Understanding Signed Between Cementera and CEMEX Nicaragua
Thursday, November 21, 2013
The Chairperson of the Board of the Compañía Nacional Productora de Cemento (CNPC) Carmen Reyes García and the representative from CEMEX Nicaragua, Andrés Jiménez Uribe signed a Memorandum of Agreement where the Mexican government authorized the construction company to install and operate a plant for grinding and cement packing facilities outside the cement plant located in San Rafael del Sur.
On 10 November, a joint mission will travel abroad to promote foreign direct investment mainly from Germany, England and France.
General Alvaro "Baltodano said that although there are European investors in Nicaragua such as the Barceló Group, the cocoa producer Ritter Sports and the automotive component manufacturer Draexlmaier, the country needs to attract more investment as part of the benefits available under the AA with Central America", reported Elnuevodiario.com.ni.
Arguing that the economy has benefited, the private sector will pursue and strengthen its model of negotiations with the government.
This was the message given by the Superior Council of Private Enterprise (Cosep) during the celebration of National Entrepreneurs Day. According to the Cosep, this strategy has resulted in positive economic growth in Nicaragua.
Leading Nicaraguan entrepreneurs continue to support the model of economic negotiation with the government.
"Everyone here is free to move, the press is free to speak and I think from that point of view we are living in an open society," said the businessman Carlos Pellas, president of Grupo Pellas.
Entrepreneurs like Carlos Pellas and Piero Coen agree that the "understanding with the Government has brought economic growth."
The Agreement for the Promotion and Reciprocal Protection of Investments has been ratified, which promotes financial and trade relations and cooperation between the two countries.
From a press release issued by the National Assembly of Nicaragua
On August 14 the National Assembly unanimously approved the Agreement on the Promotion and Reciprocal Protection of Investments between the Government of the Republic of Nicaragua and the Government of the Russian Federation. This agreement seeks to promote financial and trade relations, and cooperation between the two countries.
The so called 'Patriotic Tax' of 35% applied to imports from Colombia is hampering the growth of Colombian investment in the country.
After visiting a trade mission composed of mining companies, sanitaryware companies and craft companies from Colombia, Nicaraguan businessmen said the Government should take into consideration that business opportunities such as these generate more investment in the country, therefore they have requested the elimination or modification of the tax on goods and services, assembly and imported manufactured goods from that South American nation.
Recognized Brazilian company of backhoe loaders, telescopic, articulated and other types of cranes looking for companies interested in representing the brand and distributing their machinery in Central America and Mexico. The company manufactures and sells telescopic,...