CABEI Assigns US$300.00 Million to the Multisectoral Program for the Economic Reactivation and Social Protection of the Republic of Nicaragua
Through the initiative, the multilateral will benefit 1,563,470 people and is expected to generate about 2,138 permanent jobs, of which 20 percent will be for women.
Tegucigalpa, November 24, 2020.- The Central American Bank for Economic Integration (CABEI), today approved a loan for a total amount of US$300.00 million to the Republic of Nicaragua for the Multisectoral Program for Economic Reactivation and Social Protection (NIC-Solidaria), which aims to initially support at least 41 projects and programs of public investment, production and social assistance.
In a first and second stage, the programs financed by CABEI through NIC-Solidarity will concentrate on the following sectors: education, health, housing and road infrastructure, followed by activities in the agricultural and rural development sectors, fishing and climate change; the promotion and attention to Micro and Small Enterprises ( MIPYMEs), attention to vulnerable groups and social assistance for the attention of the COVID-19 Pandemic.
In this same line to continue promoting the economic and social development of this Central American country, the Executive President of CABEI, Dr. Dante Mossi, assured that: "the programs and projects contemplated in the NIC-Solidaria Program represent a high impact in the reactivation and development of the economic sectors, as well as the creation of jobs, and contribute to the well-being of the benefited population".
Similarly, Mossi said that derived from the interventions to be carried out, the Program is expected to incorporate 82,004 square meters of construction, 521 hospital beds and medical equipment. Additionally, it will benefit 1,563,470 people and generate 2,138 permanent jobs, 20 percent of which will be for women.
Likewise, the NIC-Solidaria program of national scope will be developed in fifteen departments of the country: Boaco, Carazo, Chinandega, Chontales, Estelí, Granada, Jinotega, León, Managua, Madriz, Masaya, Matagalpa, Nueva Segovia, Río San Juan, Rivas, and in the Autonomous Regions of the North Caribbean Coast (RACCN) and South Caribbean Coast (RACCS).
On the other hand, the procurement processes of the Program will be carried out in accordance with the Policy on Procurement of Goods, Works, Services and Consultancies with resources from CABEI, with the support of the United Nations Office for Project Services (UNOPS).
The loan will be executed under two tranches; the first still for 20 years with a 5 year grace period and an indicative interest rate of LIBOR 6 months plus 175 basis points and the second for 20 years with a 5 year grace period and an indicative interest rate of LIBOR 6 months plus 250 basis points.
This CABEI initiative is contemplated within the framework of its Institutional Strategy 2020-2024; in its strategic axes of Human Development and Social Inclusion, Sustainable Competitiveness and Environmental and Social Sustainability, which contributes to economic growth, support efforts to reduce poverty and inequality.