Which projects will be impacted by Nicaragua's budget reform?
The bill to amend the Nicaraguan government's 2018 budget, which was approved by congress on Tuesday, will impact a number of infrastructure projects in various sectors, such as roads, hospitals, education, and water and sewage.
The bill, which was submitted by President Daniel Ortega to compensate for the economic impacts of the social and political unrest that the country has experienced since April, estimates the government's revenues for this fiscal year at 73.3bn córdobas (US$2.29bn), down from the 80.8bn córdobas included in the proposal originally approved in October.
Meanwhile, the legislature authorized the reduction of the government's total spending budget by 5.91bn córdobas, from the 87.1bn córdobas initially earmarked.
The amendment to the budget includes cuts to some of the ministries' investment projects, as well as allocations to municipal governments.
External funding for programs and projects was also cut as a result of gaps in tender process timetables, canceled tenders, problems in the supply of construction materials, halting of works and road blockades, among others.
AFFECTED PROJECTS
The budget of the transport and infrastructure ministry (MTI) was cut by 409mn córdobas, of which 394mn córdobas was earmarked for three road projects.
One of them is the rehabilitation of the 58.5km Muy Muy-Matiguás-Río Blanco highway in Matagalpa department, which will see its budget for this year reduced by 209mn córdobas.
Works on the project, which was divided into three sections, began earlier this year and were expected to be completed in about two and a half years.
The highway is part of the strategic corridor that will connect the country's North Caribbean Coast autonomous region with the Central and Pacific regions.
The works are being financed with a US$58.7mn loan from the Central American Bank for Economic Integration (Cabei).
A second roadworks project to be affected is the US$6.7mn upgrade of the 10.8km Las Vueltas-Las Cruces highway, the budget for which was reduced by 91.7mn córdobas.
The project is located in Nueva Segovia department and was being financed by a US$138.5mn loan from Cabei.
The third project to see a budget cut for this year, of 92.1mn córdobas, is the improvement of the 17.6km El Jícaro-Murra road, also in Nueva Segovia. Works on this project are also being funded with the Cabei loan.
EDUCATION
The Nicaraguan lawmakers decided to cut the budget for the education sector by 625mn córdobas. These funds were going to be used to finance 62 projects in different parts of the country, mostly to build new schools and rehabilitate existing ones.
HEALTH
The health ministry's budget was cut by 844mn córdobas, the largest reduction for any of the government ministries. This cut will reportedly impact the execution of 30 projects, including the construction, rehabilitation and equipping of clinics and hospitals throughout the country.
Some of the most significant works to be impacted include the construction and equipping of a hospital in Chinandega, the Nuevo Amanecer hospital project in Bilwi, capital of the north Caribbean coast autonomous region, as well as a hospital project in León and health clinics in Quilalí and Waslala.
The justification for the cuts to these project budgets was either delays in the tender processes or changes to the original designs that have not yet been completed.
WATER
A 147mn-córdoba cut was approved in the budget of state water and sewerage utility Enacal, which will affect a project to expand and improve potable water services in Bilwi.
Some 1.76bn córdobas had been earmarked for Enacal in the national public investment program for this year.
IMPACT
The effects on the development of different projects in the country were already palpable due to economic cooperation sanctions implemented by the governments of the Netherlands and Luxembourg, which temporarily halted cooperation deals out of concern about alleged human rights violations.
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