Construction will not be carried out on road works, sanitation and new schools this year in Nicaragua, due to the cut in public spending approved by the National Assembly in this year's budget.
Due to the impact that the political and social crisis has had on the Nicaraguan economy since mid-April, the Ortega administration presented a new budget to the Assembly, which includes a reduction in revenues and in spending foreseen for the remainder of the year.
With the two loans approved by the National Assembly of Nicaragua, schools will be built in the Caribbean area and the Juan Pablo II highway will be expanded in Managua.
One of the loans approved by the Assembly is for $55 million, which will be used to build, remodel and expand 45 schools, 20 in the North Caribbean Autonomous Region, five in the South Caribbean Autonomous Region and five in the municipality of Rio San Juan.
Approval has been given for a loan to build transmission lines that will connect the hydroelectric plant Tumarin Phase II with the National Load Dispatch Center in the municipality of Managua.
From a statement issued by the National Assembly of Panama:
Members of the National Assembly approved on March 1 a loan decree agreed with the European Investment Bank, EIB, which will be used to finance the construction of transmission lines to connect the hydroelectric plant Tumarin Phase II with the National Center Load dispatch in the Municipality of Managua.
The IDB is providing $40 million in financing for construction of power substations in the north and $90 million for renovation of roads in Jinotega and Chontales.
From a statement issued by the National Assembly of Nicaragua:
$40 million for electrical substations
A $40 million loan signed with the Interamerican Development Bank (IDB) was approved on February 16 by the plenary, which will be used to fund the construction of three new substations.
23% of the approved budget for 2016 will go to the Public Investment Program, which includes infrastructure projects such as hospitals, roads and rural electrification.
The 2016 budget is 14% higher than in 2015, and of the total, 23% of resources will be focused on public investments. Among the infrastructure projects planned for 2016 are the road Naciones Unidas-Bluefields on the Caribbean coast, the road Río Blanco-Mulukukú, construction of the Occidental hospital in Managua and the new hospital in Chinandega.
The National Assembly has approved the loan with the Central American Bank for Economic Integration to build a hospital in the northern Caribbean.
Added to the loan funds will be $7.8 million which will be provided by the government to build a new hospital in the Autonomous Region of the Northern Caribbean (RACN). Elnuevodiario.com.ni reports that "...the CABEI and the Government of Nicaragua signed on 23 September last year a loan agreement to finance the replacement of 'Regional Hospital Nueveo Amanecer', located in the municipality of Puerto Cabezas or Bilwi. "
The National Assembly has approved a loan from the CABEI to build water and sanitation systems, storage tanks, septic tanks, sewers and household connections.
From a statement issued by the National Assembly of Nicaragua:
Following the adoption of a decree for a $30 million loan signed between the Republic of Nicaragua and the Central American Bank for Economic Integration (CABEI ), 121 rural municipalities will benefit from the implementation of the "Project for Sustainability Rural of Water and Sanitation"
The National Assembly has approved a loan from the Central American Bank for Economic Integration for hydraulic cement paving of 45 kms of the stretch passing through La Gateada- Naciones Unidas - Bluefields.
From a statement issued by the National Assembly of Nicaragua:
The National Assembly unanimously approved on January 27, a Loan Decree to finance the Road Connectivity Project on the Caribbean coast, which will be implemented by the Ministry of Transportation and Infrastructure.
Representatives from the government of Kuwait announced the opening of an embassy in the country and their interest in participating in investment projects, including the construction of a hospital.
Jamal Al-Omar Hsein, president of the "Fourth Parliamentary Group" in Kuwait has met with the government and the National Assembly of Nicaragua, and said "....
The National Assembly has approved a loan from the European Investment Bank to expand electricity coverage in rural areas.
The government plans to implement the project in 3000 rural communities in different areas of the country, including the Caribbean coast. With this investment in the power grid coverage is expected to increase in rural areas from its current 64% to 86%.
The recently approved amendment to the Housing Act provides a subsidy of 2.5% in the interest rate for mortgage loans that are not greater than $32,000.
Responding to industry demands and seeking to motivate the new housing market, the recently approved reform also provides, as well as the subsidy, that any bank can apply the exemption of 15% from Value Added Tax (VAT) for mortgage loans with this same ceiling rate.