Nicaragua presents list of potential PPP projects

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Tuesday, May 16, 2017

Nicaragua's investment promotion agency ProNicaragua has presented a list of projects open to investment, which could potentially be developed under public-private partnerships (PPP).

The projects were unveiled at an event attended by French government officials, which was aimed at presenting the competitive advantages brought about by the PPP law approved last year.

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The initiatives on the list are meant to improve trade, create access to new production centers, borders, ports, and airports, and through them, the government seeks to attract national and international investment, according to a report by official news portal El 19 Digital.

One of the initiatives is the project to relocate and upgrade the Augusto C. Sandino international airport, the country's main gateway, which is currently located in capital Managua.

According to authorities, the Nicaragua government is currently working on securing a credit line with the Russian government to finance that project.

Last month, Nicaraguan vice president and first lady Rosario Murillo also announced that the government of Taiwan had offered financing for the project.

The most up-to-date estimate of the investment required for the airport project is US$133mn, although authorities have noted that the figure may be subject to change.

Another project entails building the 415km Costanera del Pacifico highway at a cost of US$120mn. The highway would serve to connect the entire Nicaraguan Pacific coast.

Other initiatives on the list include the following: construction of Bilwi's airport terminal; installation of fuel supply systems in domestic airports (required investment US$15-20mn); the US$130mn Managua-Masaya-Granada tourist rail line; construction of a US$50mn interurban bus terminal in the municipality of Managua; building a US$60mn cruise ship terminal in San Juan del Sur; construction of a port in Bluefields; and building a US$50mn fish processing plant.

The majority of those projects are included in a strategy entitled Development Policies and Projects for Fostering Investment 2017-2021, which the government launched in October of last year as part of the PPP law and which it is already promoting to local and international investors, foreign governments and financial institutions to secure financial and political support.