7 Reasons to Invest in Nicaragua - #2 Infrastructure Investment
Jun 3rd, 2010 by Kevin
Nicaragua has approximately 19,000 km of roads connecting the capital, Managua, to all major cities. The Pan- American Highway traverses the country from north to south. It is 370 km long and connects Nicaragua with Honduras and Costa Rica. The main highways have been refurbished substantially in the last two years, including the highways that link the capital with the Western, Central and North Regions, as well as with both borders. The budget for infrastructure development in 2008/9 increased by 13%, compared to 2007, and the current Pacific highway project of more than $200 million is underway.
Nicaragua has six important seaports, among which are the Pacific coast ports of Corinto and Puerto Sandino, which have the capacity to handle international container traffic. Nicaragua also has access to Puerto Cortés in Honduras and Puerto Limón in Costa Rica, both of which are at a day’s distance by truck.
Major shipping companies like Crowley Logistics, Seaboard Marine, Maersk Sealand, NYK Logistics are already serving the Nicaraguan market, as well as parcel carriers such as FedEx, DHL, and UPS.
The international airport, Augusto C. Sandino, is located 11 km from Managua’s urban center. It handles all international passengers and freight traffic to and from Nicaragua, and is considered one of the safest airports in Central America. A US$60 million expansion and modernization of Managua’s International Airport was finished in 2006. This important project included not only an infrastructure revamp aimed to provide improved services to passengers, but also the construction of facilities for a more efficient cargo handling process.
Nicaragua is serviced by the following international airlines: American Airlines, Continental Airlines, Delta Airlines, Copa Airlines, Grupo Taca, and Spirit Airlines.
The border crossing between Nicaragua and Costa Rica is planned for renovations. Both countries have agreed to fund the project and then to encourage tourists to visit each neighboring country while on vacation in Central America. This opens up a tremendous advantage for travelers to southern Nicaragua as a flight into Costa Rica’s Liberia International Airport reduces the ground travel time to San Juan Del Sur when compared to arriving at the airport in Managua.
Telecommunications
The telecommunication sector is fully privatized and is considered to be one of the most modern in Central America. ENITEL, the national telephone system operator and provider of land-line services, is connected to all major international operators. The two current providers of mobile phone services are Telefónica and Grupo Móvil. Nicaragua also has several Voice over IP service providers and Internet providers of data transport services using fiber-optic and submarine cables.
Furthermore, the country provides high quality redundant connections by means of two submarine optic fiber cables. These cables have no limit as regards broadband capacity.
Energy Independence
Nicaragua is tapping into its vast geothermal power resources and has awarded two concessions to Magma Energy Corp. and its partner Polaris Geothermal Inc., both of Canada, as part of a long-term energy self-sufficiency plan. Industry experts say Nicaragua has the most geothermal energy potential of any country in Central America. Mostly trapped in volcanic mountains along the Pacific Coast, experts say geothermal energy alone can solve Nicaragua’s energy crisis while efforts are under way to exploit wind power and other forms of renewable energy.
Nicaragua granted the concession on the understanding that the two Canadian companies will invest $50 million on developing the sites for power generation. Exploration will start in early 2010. Polaris is already involved in the construction of a geothermal power plant in San Jacinto, about 12 miles northeast of Leon, through its Nicaraguan subsidiary, San Jacinto Power S.A.
Recently, the country also announced a second new renewable energy project, which the government hopes will help the nation out of the energy crisis it has endured for the last three years. A group of high-powered Nicaraguan businessmen have committed to invest close to $92 million to generate 40 MW of wind energy this year.
Abundant Fresh Water
By May 2011, residents and visitors in San Juan Del Sur should be turning on the tap and using water from Lake Cocibolca. The inauguration last week of the project called ―Improvement and Expansion of the Water Supply and Sewer Systems should have excited residents and investors seeing the light at the end of the tunnel (or water at the end of the pipe). The head of ENACAL, Ruth Herrera conceded that there have been delays in the project but all that will likely be forgiven as she promised the inhabitants of the municipality “One hundred percent potable water supply and sewer as of May 2011.”
The $2 million Cordoba project will see the construction of a ―head-works in Lake Nicaragua, capturing lake water and bringing it to a treatment facility in La Virgen. The now potable water will then travel about 24 kilometers west to San Juan del Sur. Two massive tanks will store up to 2 thousand 400 cubic meters of water and service 16 thousand inhabitants of San Juan del Sur.
The current sewer system will have an expanded wastewater treatment plant (north of the city on the aptly named ―Chocolata). Almost 7 kilometers of new pipes will connect three booster stations that will send the waste to a new treatment plant, and then pump the treated waste into the Pacific Ocean. At 8,264 square kilometers (3,191 square miles), Lake Cocibolca or Lake Nicaragua is the largest lake in Central America and the 21st largest in the world (by area). It is 32 meters (100 ft) above sea level and reaches a depth of 26 meters (85 ft).
Other articles in this Series:
Reason #2 – Infrastructure Investment
Reason #3 – Investment Incentives
