Nicaragua pushes US$600mn highway works despite COVID-19

While the COVID-19 pandemic led to suspensions of infrastructure works in at least three Central American countries, Nicaragua moves ahead with 71 highway projects for a combined 20.8bn córdobas (US$604mn).

Transport minister Oscar Mojica told a local broadcaster recently that the pandemic did not have an impact on infrastructure works.

“We are the only country, probably in Latin America, that has not stopped a single project due to the effects of COVID-19,” he said, adding that the highway projects are vital to fighting the crisis and connect municipalities.

Many works started in 2019 and will be completed this year, while works that started recently will be finished throughout 2021, the minister said, adding the projects will enlarge the road network by 5,500km.

A key project the transport ministry (MTI) is working on, according to Mojica, is the US$171mn, 128km Siuna-Rosita-Sahsa highway. Scheduled to begin operation in 2022, it receives financing from the Central American Bank for Economic Integration (Cabei) and includes improvements with hydraulic concrete.

PORTFOLIO

In 2019, the Ortega administration presented an US$11bn portfolio with 128 projects and programs to boost investment through 2021, using diverse financial instruments. The portfolio includes initiatives for various sectors such as telecommunications or tourism.

Most infrastructure projects in the portfolio are related to transportation and are divided into ongoing projects, projects with confirmed financing, and projects open to financing.

It is unclear how many of the works Mojica mentioned are part of the portfolio.

Ongoing projects

Of the 42 projects for a combined US$1.4bn in this category, 12 are highway works.

Construction for most was scheduled to finish in 2019. And works on the US$24mn Ciudad Sandino-Mateare highway, the US$30mn Los Chinamos-El Ayote highway, the US$30mn first stretch of La Esperanza-Wapí-El Tortuguero highway, the US$27mn Malacatoya-El Palo-El Papayal highway and US$24mn Malacatoya-Victoria de Julio highway are expected to finish in 2020.

Confirmed financing

In this category are 20 projects - seven highway works - with total investments of US$1bn. Construction began in 2019 and is ongoing, minus the three projects that were finished last year.

Highway works included are the US$29mn El Boquete-Santa Ana highway, expected to be completed this year, the US$30mn second stretch of the La Esperanza-Wapi-El Tortuguero highway, to be completed in 2021, the Siuna-Rosita-Sahsa highway, and the US$70.5mn stage one of the Managua beltway, including the Ticuantepe-Santo Domingo-San Judas-Nejapa stretch, all scheduled to begin operations in 2022. 

Open to financing

This category has 66 projects for US$8.6bn. They can be financed privately, through PPPs, or through public funds only.

In the list are eight highway projects, scheduled to be concluded this year and the next.

They include the US$660mn Litoral Pacífico highway, the US$102mn second stage of the Managua beltway, the US$123mn Acoyapa-San Carlos-San Pancho highway, the US$12mn Panaloya bridge, the US$32mn Estelí-El Aceituno-El Sauce highway and the US$19mn San Francisco Libre-Los Zarzales highway.

It also includes widening works for US$8mn at the El Guasaule, El Espino, Las Manos, Peñas Blancas and San Pancho border crossings, and the US$22mn Las Flores-Catarina-Guanacaste highway expansion.