CABEI is committed to Nicaragua’s development agenda

In order to promote the region’s growth, over the past five decades the Central American Bank for Economic Integration (CABEI) has promoted projects that support regional economic development and seek to improve the quality of life of Central Americans.

In the face of a globalized world, CABEI has financed a number of strategic projects in Nicaragua. According to the Bank’s 2012 Annual Report, it provided US$102.9 million in financing to the Project, “Construction and Equipment of Carlos Roberto Huembes Hospital." This operation, in addition to supporting the health care sector, combines hospital services with the education of students, interns and residents, as well as research, in the framework of agreements signed with different university medical schools.

CABEI also approved US$56.6 million for the Program, "Improvement and Expansion of the Potable Water and Sanitation Services in Pacific and Central Nicaragua.” The program involves the implementation of a set of actions designed to improve and expand water and sewer services in the pacific and central areas of Nicaragua.

In the Bank’s axis of productive infrastructure, US$45 million was approved to co-finance the “5th Highway Rehabilitation and Maintenance Project.” This project involves carrying out pavement structure and drainage construction works that will allow the rapid transit of vehicles through the 86.8 kilometers, which make up the seven stretches of the road network that the project is rehabilitating.

The Bank also approved US$38.6 million for the Project, "Rehabilitation and Improvement of the Empalme Nejapa-Empalme Puerto Sandino Highway Strech," in order to rehabilitate and improve 50.6 km of road. The project will revitalize the economy, attacking the high poverty rate head on and benefiting thousands of inhabitants of communities located in the project target area.

In terms of the distribution of loan approvals by economic sector, CABEI made notable approvals to the social services and health sector for US$102.9 million; to the infrastructure sector for US$83.6 million; and to the electricity, gas and water supply sector for US$56.6 million.

CABEI Executive President Dr. Nick Rischbieth also mentioned the Bank’s support to Nicaragua’s agricultural sector, which represents 20% of GDP and, at the same time, generates 45% of national employment. CABEI’s investment in this field has focused on fostering sustainable agricultural activity to face the food security problem; strengthening food safety systems; transferring technology to producers; and promoting agricultural production.

President Rischbieth discussed these subjects during meetings of the CABEI Board of Directors held in Managua.

Strengthening renewable energy and social infrastructure projects

In 2012, portfolio disbursements to Nicaragua totaled US$127.6 million, representing 8.9% of the resources channeled during the year. As for resources disbursed, the Bank focused its support to projects of the electricity, gas and water supply sector, especially the "Pantasma Hydroelectric Project" and the “Larreynaga Hydroelectric Project."

Similarly, US$23.1 million was allocated to the hotels y restaurants sector, mostly used for the development of the “Guacalito de la Isla Tourism Complex.”

Micro, Small and Medium Enterprises received US$22 million in support through the network of Intermediated Financial Institutions (IFIs) of both the public and private sectors.
 
The Project "Construction of Dávila Bolaños Military Hospital" of the health and social services sector was benefited with financial resources totaling US$18.9 million.

In addition, the Bank disbursed US$3.9 million in non-reimbursable FETS resources to support the construction of “Larreynaga Hydroelectric Plant” and the project “Construction of Dávila Bolaños Military Hospital."

CABEI benefits thousands of Nicaraguans

The operations approved for Nicaragua during 2012 are expected to have a significant impact on development in benefit of Nicaraguans:

• Strengthen the job market with annual average of 4,701 permanent and temporary jobs.
• Direct and indirect benefit to 109,952 daily users of the road network and 252,158 patients.
• An average of US$579 thousand annually in tax revenue for the government.
• US$4.6 million in average annual income to the national economy.
• 138.4 kilometers of highway.
• 435 hospital beds.
• 6,838 household connections to potable water supply.