CABEI and the Republic of Nicaragua sign contract for an amount of US$300.00 million for the NIC-Solidaria (Solidarity) Program
The initiative is contemplated in the 2020-2024 Institutional Strategy framework, under the strategic axes of Human Development and Social Inclusion, Sustainable Competitiveness and Environmental and Social Sustainability.
Managua, December 4, 2020 - At least 41 public investment, productive and social assistance projects may be executed in Nicaragua after the signing of the loan agreement between the Central American Bank for Economic Integration (CABEI) and the Republic of Nicaragua for the Multisectoral Program for Economic Reactivation and Social Protection (NIC-Solidaria).
The signature is made giving continuity to the approval of the initiative by CABEI's Board of Directors, made on November 24th of the current year, the amount destined amounts to US$300.00 million.
CABEI's Executive President, Dr. Dante Mossi, reiterated that: “the NIC-Solidaria Program brings with it a series of high impact actions that will promote the reactivation and development of the economic sectors, besides supporting the efforts to reduce poverty and inequality in this Central American country.”
The projects financed by CABEI through NIC-Solidaria will focus on the education, health, housing, and road infrastructure sectors, followed by activities in agricultural and rural development, fisheries, and climate change; the promotion of and attention to Micro and Small Enterprises (MIPYMEs), attention to vulnerable groups, and social assistance for the COVID-19 pandemic.
At a national level, it is expected to benefit 1,563,470 people and generate 2,138 permanent jobs, incorporating around 82,004 square meters of construction, 521 hospital beds and medical equipment.
The loan will be executed under two segments: the first with a 20-year term with a 5-year grace period and an indicative interest rate of 6-month LIBOR plus 175 basis points and the second with a 20-year term with a 5-year grace period and an indicative interest rate of 6-month LIBOR plus 250 basis points. And its procurement processes will be developed in accordance with the Procurement of Goods, Works, Services and Consultancies Policy with resources from CABEI, which will be supported by the United Nations Office for Project Services (UNOPS).