Summary: The government of Nicaragua has signed a 25-year lease for the port facilities of Puerto Cabezas, on Nicaragua’s North Atlantic Coast, with an American-backed company. Completion of all stages of the ambitious investment plant would be a major boost to this region, impoverished even by Nicaraguan standards. The investment has the potential to lower transportation costs for imports and exports to Nicaragua, and provide opportunities for exporters of U.S. goods and services
DELASA, whose principal stockholder is Olympus Venture Capital of New York, obtained the lease in a direct negotiation, after it was the sole bidder in two open tenders. The National Assembly approved a special bill sanctioning the lease, and will have to give its blessing to the contract by late November.
DELASA has a three stage plan to upgrade the port, with each phase dependent in some degree on the success of the previous stage. The first stage is to repair the existing dock and transit warehouse, put lighting along the pier, and improve navigation with buoys. There will also be investment in some cargo handling equipment, such as cranes and front-loaders. The amount of investment is not defined, but the equipment costs are estimated at $18 million. The second stage would involve the construction of a free trade zone and an electrical plant. This stage is dependent on the success of the first stage and obtaining a free trade zone license.
The third stage contemplates the dredging the access canal, new concrete piers to accommodate containers, bulk and liquid cargo. This stage is contingent on the success of the previous stages, and the completion of an all-weather road to Puerto Cabezas (a project that is a government priority, but whose funding is still uncertain.)
Comment: President Aleman boasted to the press at the inauguration that this lease would create the best Caribbean port in Central America (Nicaragua already claims to have the best Pacific port, but unfortunately there’s little traffic on that coast). Should all phases of the plan come to fruition, it would indeed be a boon to Nicaragua, which currently faces high transportation costs and delays, as it sends up to 80 percent of its exports through either Puerto Cortes in Honduras or Puerto Limon in Costa Rica. The area around Puerto Cabezas is one of the poorest in Nicaragua. Any economic activity, especially labor-intensive assembly work, would be a plus. Investment in infrastructure, such as power, water and sewerage (part of the third stage, we understand) is a pressing need. Before this point is reached however, there are many contingencies, such as the completion of the road, the amount of traffic generated by Nicaragua’s growing economy, and the willingness of foreign companies to invest in Nicaragua and the North Atlantic region.
Jorge Giraldez-Benard
Latin American Advisors Company Ltd.
e-mail: JGiraldezB@yahoo.com -or- Giraldez@mediaone.net
YahooPager or MSN Messenger User name: JGiraldezB
P.O. Box 140064 Coral Gables, Florida 33114 EEUU
Private: Voice/Data Facsimile (305)597-1555
SUB OCEAN SAFETY: http://www.suboceansafety.org/
Solamente aquellos que suen~an lo absurdo, haran lo imposible
Only those who dream the absurd, shall accomplish the impossible
|