Home Site Click here for more information

Las Perlas de Gran Pacifica Click here for more information

Surfing at Gran Pacifica Click here for more information

El Coral I Town center Condos  Click here for more information

Milagro del Mar Condos Click here for more information

Get your Casita Model !!! Click here for more information

May 2008

Issue: 2008 - 3

Nica - Newsletter

Dear readers,

The rainy season is near to refresh the land. We will see how everything goes from a golden dryness to all kinds of green in the blink of an eye. It is a wonderful ability the Nicaraguan soil has to do this magic!

In this new edition, you will find a selection of different press articles, news on our project in Belize as well as on Nicaragua’s economy. The country is preparing the campaign to elect municipal authorities in November this year, and we hope all is for the best of the country.

Important companies have been opening their facilities taking advantage of the one-of-a-kind opportunities this country gives to investors.

We hope you enjoy this issue and keep in touch,

Fabricia Sánchez
Executive Assistant to the President
www.granpacifica.com

Table of Contents

• Tourism
  • Tourists Discover Peaceful Nicaragua
  • Good and bad of travel changes
• Business and Economy
  • Nicaragua sees foreign direct investment up 18 pct
  • International Textile Group’s Cone Denim Celebrates Nicaragua Opening
  • Nicaragua more pro-oil than Florida and California
  • Nicaragua factory rolls cigar of the year
  • Ortega’s Friendship Help U.S. Relations
  • Ortega Praises US Millennium Program!
  • Top 5 Latin American Real Estate Markets
• Humanitarian Works
  • Building the Second Fence: A slightly Different Experience
  • Poyner & Spruill Health Care Attorney Ken Burgess Receives 2007 Volunteer Of The Year Award
  • WOW: Week of unusual learning is “incredible”
• Belize Update
  • ECI planning condominium in Belize

Tourism

Tourists Discover Peaceful Nicaragua

The historic colonial city of Granada is a well preserved cultural oasis

Silvana Saccomani, Canwest News Service

If Granada invokes the heady smell of orange blossoms, the lavish Moorish-styled Alhambra or the rhythms of flamenco guitar, you've traveled too far. On this side of the Atlantic Ocean, the Nicaraguan city of Granada is squeezed between the hulking Mombacho volcano and Lago Cocibolca, 20th largest lake in the world. Craig Baskett and Eva Logan have just returned from there.

As Nicaragua celebrates its second decade of peace, tourists are discovering Granada as one of the most attractive historic centres in Central America.

"Over the years we've spent a fair bit of time in Mexico and Guatemala, and have always enjoyed the culture and food of this region," says Baskett, who adds they became curious about Nicaragua after hearing and reading about the country's safety record, charming architecture and great value.

Must see, must do

According to Logan, when it comes to Nicaraguan culture, new and old, nothing compares to Granada, which is an easy one-hour drive or cab ride from the country's capital of Managua.

Founded in 1524, Granada is today one of the oldest colonial cities in the Americas. Baskett says despite the frequent assaults from pirates and ambitious imperialists over the years, a good portion of the city's colonial architecture remains intact. Add the narrow, cobblestone streets and courtyards cafes, and it's no wonder this Calgary couple enjoyed the city so much.

Like many towns, life in Granada unfolds in the tree-lined Parque Central.

A vast square flanked by colonial mansions and an imposing bright yellow cathedral, here local artisans sell bracelets, rings and other jewelry, as well as other handmade items.

Baskett says keep your eyes open for the Sultan Cigar shop. Like elsewhere in the country, these are made from 100 per cent Cuban tobacco and sell for as little as $1 apiece.

After a day in the sweltering sun, Baskett and Logan retreat to their comfortable, air-conditioned room. Like the other nine rooms in Casa de San Francisco, this one overlooks a traditional colonial garden courtyard. (Casa San Francisco: 207 Calle Corral; 505-552-8235; casasanfrancisco.com; $60 a night for double occupancy and with breakfast.)

By mid-afternoon, other hotel guests, also looking to cool down, join them poolside. Happy hour is well underway offering the second best bargain of the day: four bottles of Toña, the local lager, for $3.

It's here from this vantage point that Baskett comes to realize his imaginings of a dangerous Nicaragua, land of Contras and Sandinistas were clearly outdated.

"At Cafe Deliet, which is on the spacious front porch of Hotel Alhambra overlooking the parque, you can feast on tender beef and tasty chicken dishes," says Logan.

"Grilled fish straight from the lake is also on the menu, and all meals come with the delicious fries made from tiny, locally grown potatoes."

After dinner she says, "It's a good idea to pop into the Internet cafe in back of the hotel where they sell Eskimo ice cream treats, then head over to watch the teenage boys play soccer on the cobbles in front of the Cathedral." (Cafe Deliet: Costado Oeste, Hotel Alhambra; 505-552-

Another way to avoid the heat that begins to build toward noon is to head into the surrounding naturaleza.

A number of eco-excursion companies have sprung up, each one prepared to take you to the upper reaches of the Mombacho volcano cloud forest.

Mombacho hasn't erupted in centuries, which has allowed the crater to evolve into a huge sunken hole of vegetation. It's a nature preserve inhabited by howler monkeys, and some say, small jungle cats.

Higher still, you are granted views of Lago Cocibolca (also known as Lake Nicaragua).

Las Isletas -- a cluster of 350 volcanic islands -- were formed by a Mombacho lava flows eons ago.

Baskett describes them as looking like "pearls scattered over the water's surface."

Today the islands are easily accessible by taxi boat or kayak. Most are no larger than a big rock. Some have been snapped up by wealthy Nicaraguans (including the country's president, Daniel Ortega) and foreigners for vacation homes. But hardworking fisherman and painters (whose works are on display in the local churches and elsewhere in town) make up the largest populations, and one island has a fast-breeding colony of spider monkeys.

Tours, arranged through the hotel, run about $30 per person.

According to this Calgary couple, some of the best aspects of Central America are packed into the area in and around Granada.

There are huge tracts of forests like in Costa Rica, the kind of well-preserved colonial cities you'd find in Guatemala and unsullied beaches as good as those in El Salvador.

According to Baskett and Logan, the local expression: "Granada is Nicaragua; the rest is just mountains," pretty much sums up their experience.

www.canada.com/vancouversun

Good and bad of travel changes

A smart traveler takes the time to review the big developments in travel, because these larger trends can inform your own vacation decisions. Some are awfully obvious, and yet deserve renewed attention:

1. The dramatic decline of the U.S. dollar. This affects not only a possible trip to Western Europe (whose euro and British pound have risen greatly in worth), but also trips to Canada, Australia, New Zealand and Japan, whose currencies also have risen dramatically. Your most obvious course is to substitute a trip to Central or South America, or to Asia (other than Japan), where the U.S. dollar remains relatively strong. Or else you must adopt radically different policies for arranging your lodgings (vacation homes or apartments, rooms in private homes, hostels) in travel to Western Europe.
2. The ever-larger cruise ship. The cruise lines continue to build vessels for up to 4,000 passengers, and the only smaller new ships are those of "premium" lines, costing an arm and a leg. If you are to avoid the cruise-ship crowds, you must learn how to use the Web sites of the various cruise discounters, who occasionally -- very occasionally -- have bargains to offer on the smaller luxury vessels.
3. The emergence of the airfare "aggregators." Such names as Kayak.com, Sidestep.com, Farechase.com, Momondo.com and Mobissimo.com are becoming increasingly popular because they impartially list all the low-cost airfares available to you. They do not sell air tickets, but simply direct you to the relevant airlines.
4. The growth of the vacation-exchange industry. "You stay in their home while they stay in yours." The Hollywood film "The Holiday" has caused a torrent of Americans to pay attention to this most logical, sensible and effective method of reducing your lodging costs.
5. The increasing popularity of free hospitality services. Internet sites like Couchsurfers.com, GlobalFreeloaders.com and USServas.org enable you to enjoy free hospitality.
6. The growing trend toward the rental of vacation homes and apartments. It's a giant movement. More and more Americans have learned that a vacation home or apartment can cost considerably less than an equivalent hotel room or rooms. Try Homeaway.com, among others, for obtaining such lodging.
7. The growing travel popularity of Central America. Costa Rica was the first success story, but now Panama, Nicaragua and Honduras are coming up fast.
8. The increase in bargain-price repositioning cruises. As more and more cruise ships alternate between the Caribbean (winter) and European waters (spring and summer), and need to move between one area and the other ("repositioning"), there's been a tremendous rise in the number of repositioning cruises, costing as little as $60 a day. Go to Vacationstogo.com for the most clearly identified listing of repositioning cruises.
9. The emergence of the European river cruise. Cruises along the Rhine and the Danube, in particular, are soaring in popularity and increasing in frequency. For an unusually relaxing and very different form of vacationing, you might consider one.
10. The emergence of medical and dental tourism. Urged on by a new book, "Patients Beyond Borders," by Josef Woodman, many thousands of medically uninsured Americans are now seeking low-cost medical or dental care abroad, in clinics and hospitals accredited by the same organizations that accredit clinics and hospitals in the U.S.
11. The almost universal need for a passport. As directed by the Department of Homeland Security, it is now necessary to possess a passport if you plan to fly anywhere in the world -- even simply within the Western Hemisphere. Get one.
12. The comeback of Priceline.com. By first using a Web site called BiddingforTravel.com, which tells you how other travelers have succeeded in using the "opaque" Priceline, an increasing number of savvy travelers have had success with Priceline. Some, who regard Priceline as unsuitable for air travel, are making use of it for hotel rooms.
13. The increasing regard for Amtrak. At last, serious efforts are afoot in Congress to place Amtrak on a firm financial footing. Ridership on the national train system is increasing each year.
14. The emergence of hidden hotel fees. To their discredit, hotel executives have greatly increased their use of this improper tactic -- like charging $15-a-day resort fees for beach towels that remained in your room. Never make a booking without demanding to know whether hidden fees will increase your bill.
15. The startling increase in zany Las Vegas weddings. Your minister is dressed as Elvis Presley. Another rises eerily from a coffin. The wedding march is to the melody of "Viva Las Vegas." For a reason I will never understand, increasing numbers of couples are opting to be married in a weird Las Vegas wedding chapel -- and that, too, is a major recent development in travel.

www.kansas.com

Business and Economy

Nicaragua sees foreign direct investment up 18 pct

MANAGUA, Mar 25 (Reuters) - Nicaragua's government said on Tuesday it expects to increase foreign direct investment by 18 percent this year, about the same rate as in 2007, with strong growth in textiles and agriculture.

Nicaragua reported foreign direct investment of $335 million last year.

Foreign firms are likely to invest in adding value to textile and agriculture goods exported by Nicaragua, government official Javier Chamorro told reporters.

www.reuters.com

International Textile Group’s Cone Denim Celebrates Nicaragua Opening

By International Textile Group

International Textile Group's ("ITG")(OTC Bulletin Board: ITXN) Cone Denim has announced the opening of its Nicaragua operation. Located outside Managua, Nicaragua in the Jorge Bolanos Abaunza Textile Park, the Cone Denim Nicaragua (CDN) facility held its Grand Opening Ceremony on April 22.

A fully vertical operation, CDN is equipped with the most modern manufacturing equipment to process raw cotton through finished denim fabric. The facility has a capacity of approximately 28 million yards per year and will employ about 850 people.

"ITG Cone Denim is leading the industry as the first global denim fabric manufacturer to have operations in Central America," said Wilbur L. Ross, Jr., Chairman of ITG. "We recognized early on the significance of this region to our customers and the competitive value it brings.

We are excited to be a part of the growth and new opportunities here. ITG Cone Denim is known throughout the world as the leader in denim innovation and quality and is a leading supplier to the world's top denim brands. Our Central America platform allows us to further expand our innovative products and total supply solutions to customers worldwide."

Speaking at the Ceremony was Mr. Daniel Ortega S., President of Nicaragua; General (R) Alvardo Baltodano C, Technical Secretary of the National Free Zone Commission for Nicaragua; Mr. Paul Trivelli, US Ambassador to Nicaragua; Joseph L. Gorga, President & CEO for ITG; David L. Wax, Managing Director for WL Ross & Co. and a member of ITG's Board of Directors; and Charles Matthew Haynes, Sr. Vice President Operations for the Americas region for Cone Denim. Others attending the ceremony included Assistant US Trade Representative for the Americas Everett Eissenstat; ITG Board Director Ambassador Stephen W. Bosworth; ITG Board Director Dr. Daniel D. Tessoni; and ITG Cone Denim President Thomas E. McKenna.

"Our focus over the past year has been on expanding our footprint and putting in place the strategic pieces of an extensive global supply chain," said Joseph L. Gorga, President & CEO. "CDN provides our customers advanced manufacturing capabilities in a cost-competitive platform. The Nicaragua location combined with our denim manufacturing capabilities in the US, Mexico, and China and partnerships in India and Turkey allows ITG Cone Denim the resources and flexibility to service the diverse global supply needs of our customers."

International Textile Group, Inc. is a global, diversified textile manufacturer that produces automotive safety, apparel, government uniform, technical and specialty textiles. ITG was formed by WL Ross in 2004 and operates five primary business units: Automotive Safety, Cone Denim, Burlington WorldWide (apparel fabrics), Burlington House (interior fabrics) and Carlisle Finishing. The Company employs approximately 12,000 people worldwide with operations in the United States, Mexico, China, Germany, Romania, the Czech Republic, Poland, South Africa, Nicaragua and Vietnam.

Established in 1891, ITG Cone Denim has been a leading supplier of denim to top denim apparel brands for over 100 years. Known for its innovation, authenticity, quality and service, Cone Denim maintains operations in the United States, Mexico, Turkey, China, and Nicaragua to provide broader service and flexibility to customers worldwide.

Certain statements contained in this press release may constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements may relate to, among other things, ITG's future plans, revenue, earnings, outlook, expectations and strategies, and are based on management's current beliefs. Forward looking statements involve a number of risks and uncertainties, including changes to the facts or assumptions underlying these statements. ITG's actual results may differ materially from those expressed or implied in these forward looking statements due to various risks, uncertainties or other factors. These factors may include changes in general economic conditions, downturns in the automotive industry, decreases in the demand for textile products, increases in constituent raw material prices, difficulties in executing business strategies and other risk factors described in ITG's filings with the SEC from time to time. ITG does not undertake any obligation to update any forward looking statements.

SOURCE International Textile Group

www.sunherald.com

Nicaragua more pro-oil than Florida and California

Thomas Lifson

Even Daniel Ortega, the leftist president of Nicaragua, understands the importance of offshore oil exploration in the oil-rich Gulf of Mexico waters. The International Herald-Tribune reports:

Nicaragua has signed a contract with a unit of U.S.-owned MKJ Xploration to explore and develop oil and natural gas fields off its Caribbean coast, officials said Wednesday.

Under the six-year deal, a subsidiary of the Metairie, Louisiana-based company will search for oil about 60 miles (100 kilometers) from the shore in Caribbean waters. It will be granted a 30-year contract to produce oil and natural gas if it finds anything, a government news release said.

In contrast to fomrer Communist Ortega, both Florida and California do not permit new oil development in their offshore waters, which hold great promise. Along with ANWR and federal lands in the West, these potentially very rich oil fields are out of bounds for commercial oil development, so no oil company is willing to spend the money to gain further knowledge of the extent of the oil potential. When anti-oil critics dismiss ANWR as supplying less than a year's worth of oil for America, they refer to only the potential so far explored. The full extent of the deposits in these areas remains unknown.

Oil drilling technology has vastly improved since the late 1960s, when offshore wells in the Santa Barbara Channel leaked oil and focused the nation's attention of offshore wells as hazardous. And despite heartbreaking pictures of waterfowl mired in crude, the experience of cleaning up oil spills in fragile environments like Prince William Soiund in Alaska, where the Exxon Valdez spilled massive amounts of oil, reveals that recovery is swifter and more complete than doomsayers wish to believe.

Hat tip: Joseph Crowley

www.americanthinker.com

Nicaragua factory rolls cigar of the year

By Blake Schmidt
Nica Times Staff  bschmidt@ticotimes.net

The best-tasting cigar in the world last year was rolled in the Padrón factory in Esteli in northern Nicaragua, according to the most recent rankings from Cigar Aficionado magazine.

The magazine named the Padrón Serie 1926 No. 9 the best smoke in 2007 in its most recent top-25 cigar ranking.

The cigar is rolled under the supervision of José Orlando Padrón, who started making cigars for fellow Cuban émigrés in Miami after fleeing his native Cuba. The Miami stogie guru began growing tobacco in Nicaragua in the 1960s when he couldn't find the blend he was looking for in the United States, says Padrón spokesman Cesar Gadea.

“It's the blend, the construction, quality control. That's what it is. There are a lot of other companies (in Nicaragua ) that make cigars, but we're still the only one that has been chosen for the No. 1 cigar,” Gadea said in a phone interview from the family-run company's Miami office.

The Padróns have never finished out of the top three in Cigar Aficionado's Top 25 tastings, and this is the second time one of their cigars has been named the No. 1 cigar of the year.

“They are clearly at the top of their game,” Cigar Aficionado said of the Padróns.

www.ticotimes.net

Ortega’s Friendship Help U.S. Relations

Ambassador Arturo Cruz says Washington considers Ortega a man of his word

By Tim Rogers

MANAGUA, Nicaragua

Despite historical and ideological differences, President Daniel Ortega has built a solid working relationship with the U.S. government based on personal trust and close friendships with several heavy hitters in the Bush administration, according to Nicaragua's Ambassador to the United States. 

Ambassador Arturo Cruz Jr. says that a year after presenting his credentials in Washington, D.C., he is confident that the United States for the first time ever is working to normalize relations with the Sandinista government.

“We are in the process of building a relationship of more confidence,” Cruz said in a private meeting of business leaders belonging to the Nicaraguan-American Chamber of Commerce (AMCHAM).

While the institutional foundation of the bilateral relationship is built on the Central American Free-Trade Agreement (CAFTA), the Millennium Challenge Account, private investment initiatives and even humanitarian efforts such as the Peace Corps, the relationship is also being held together by a new spirit of personal friendship with Ortega, Ambassador Cruz said.

Cruz, a tenured professor at INCAE business school in Managua, with a background of working with the Contras to destabilize the first Sandinista government, says it has been interesting to see how Ortega has befriended members of the Bush administration and how those friendships have helped diplomatically.

“It's very interesting the personal relationship that Ortega has with important members of U.S. political society,” Cruz said. “The reality is that he has formed great and close friendships with Shannon [Thomas Shannon, assistant secretary of state for Western Hemisphere affairs], with Commerce Secretary [Carlos] Gutierrez, with [John] Danilovich of the Millennium Challenge Account, with [Robert] Mosbacher [president of the Overseas Private Investment Corporation (OPIC)], and with [Mike] Leavitt, the secretary of health and human services.

“The truth is,” Cruz added, “that he has formed a good group that constantly maintains this personal relationship and commitment to permanent dialogue with Nicaragua.”

The ambassador said that this “tremendous sympathy” for Ortega is due in part to the fact that the Nicaraguan president stands by his word – something that has won him political capital even among those who disagree with him on ideological grounds.

“In complicated moments, when he says he is going to do something, he does it,” Cruz said, adding that Ortega's track record of holding to his word has earned him “the benefit of the doubt in complicated moments.”

If it weren't for these personal friendships and trust, “it would be difficult otherwise to explain the stable relationship with the United States,” Cruz said.

Understanding the Score

Ambassador Cruz said Nicaragua's situation of extreme poverty, poor infrastructure and weak government institutions has led to an “understanding” in Washington, D.C., about the domestic challenges facing Ortega.

“There is understanding about how difficult it is to govern Nicaragua, a country where 80% of the population lives on less than $2 a day, the infrastructure is in critical condition, including the electrical system, the budget is less than $2 billion and petroleum is at $100 a barrel,” Cruz said. “From this perspective I think the political society in the U.S. says that if we can govern Nicaragua with a minimum of stability and within the framework of an electoral democracy, then that is already doing a lot.”

Cruz said that understanding also helps some in the U.S. government to comprehend Ortega's relationship with Venezuela's Hugo Chávez, who is helping the country to meet its immediate resource demands.

Future Relations

The ambassador is confident that the U.S. policy of personal engagement will continue, at least in the near future. Unlike some who have expressed concern over Bush's recent nomination of Robert Callahan, a former aid to Contra war architect John Negroponte, as the next ambassador to Nicaragua, Cruz is optimistic.

“I think that when Ambassador Callahan comes in September, part of his mandate will be to establish for the first time a personal relationship with President Ortega and the Sandinista Front. They are going to try for the first time to normalize relations,” Cruz said. “So I think this will be an important personal engagement to build confidence and then discuss public policy.”

Outgoing U.S. Ambassador Paul Trivelli, for his part, acknowledged that the relationship with Ortega is based on engagement and communication.

“One continues to attempt to keep dialogue going with Ortega and the Sandinista government,” Trivelli said.

Part of the normalization of relations with the U.S. government has to do with establishing ties at an executive level. Unlike the 1980s, when Ortega faced a bellicose Ronald Reagan White House and had to turn to U.S. civil society and sympathetic Democratic members of Congress, the Sandinista government is now prioritizing relations with the State Department.

“We have prioritized relations with the executive branch, the Department of State, and not so much so with Congress,” Cruz said. “This was not the case in the '80s, obviously, because the executives were adversaries. But this government has very fluid relations with the State Department, and that is the priority.”

Cruz said that Ortega's graciousness in receiving officials from the Bush administration – including a visit last week from John Feeley, the state department's director of Central American affairs who came to start negotiating the missiles for medical equipment deal Ortega proposed last year – is also helping to pave the way for more visits from high-level delegations in the future.

Soon to visit, the ambassador said, is a U.S. delegation of representatives from the departments of state, treasury, commerce, labor and health to work with their respective ministries here. Cruz said there is also the possibility of a visit by high-ranking members of U.S. Congress and top level trade and investment delegation that will be led by Secretary Gutierrez.

“In great part, one of the reasons for Gutierrez's insistence on doing this trip here is precisely because of the personal relationship that he has formed with President Ortega,” Cruz insisted.

As for the next U.S. government, Cruz says he doesn't see any reason to believe that macro changes to U.S. foreign policy will affect relations with Nicaragua one way or another.

Pundits Agree

Even political analysts who are normally critical of Ortega are tipping their hats to his ability to maintain strong relations with the United States despite his anti-yanqui discourse and his revolutionary alliances.

Renowned analyst and ex-Foreign Minister Emilio Alvarez said that Ortega has continued to show a nimble ability to dance between rhetoric and reality, and between Venezuela and the United States. Surprisingly, he said, Ortega seems to have found a willing dance partner in the U.S. government.

“The U.S. is following Ortega's lead, and dancing well with him,” Alvarez told The Nica Times. “Partners dance well when they don't step on one another's feet, and so far no one has done so.”

Carlos Tünnermann, former Nicaraguan Ambassador to the United States under the first Sandinista government in the 1980s, said that the Ortega who delivers inflammatory anti-imperialist speeches in the plaza is different from the Ortega who courteously receives guests from the U.S. State Department.

The United States, Tünnermann said, is interested in the war on drugs, terrorism, free trade and a market economy – a checklist that the Ortega government is complying with.

“Ortega is intelligent not to break the relations in this sense,” Tünnermann said.

Both Tünnermann and Alvarez agree that Ortega's juggling act could be upset in the event that Venezuela's Hugo Chávez pressures him to move beyond rhetoric and into conflict with Colombia or the United States.

“The East-West conflict of the Cold War is over, but Ortega has to be careful not to fall into a new North-South conflict,” Tünnermann told The Nica Times.

“Ortega's dance would get a lot harder to coordinate with four dance partners,” Alvarez added.

www.nicatimes.net

Ortega Praises US Millennium Program!

 “We are thankful for this cooperation from the people of the United States and that we are going to unite efforts,” as spoken in early February by President Ortega when he publicly lauded the US Millennium Challenge Account—a program designed by the US to revitalize the agricultural departments of Leon and Chinandega. 

Ortega hosted the program’s President, John Danilovich, and together they traveled to these northwestern areas to assess the progress of the five year, $175 million program.  Some of the specific goals of the Challenge Account include:

• Technical assistance and training for agricultural employees
• Infrastructure improvements, such as new roadways and irrigation systems
• Legalizing land titles for hundreds of Nicaraguan families
• Reduction of poverty, generation of employment opportunities
• Promotion of the export of agricultural products

Upon meeting with several leaders of small agricultural co-ops, it was readily apparent to Ortega and Danilovich that the program is producing the intended results.  Some of the co-ops have doubled in size—and overall, the program has generated more than 2000 new jobs in Nicaragua between July, 2006, and December, 2007.  Farmers have received needed assistance, materials and new roadways enabling them to get their products exported to destinations such as Honduras and El Salvador.  Several hundred property titles have been cleared and during the week of Danilovich’s visit, more than 700 families were given secure claim to their property, according to the Nica Times .

The Millennium Challenge Account is yet another project that highlights US dedication to the economic development of Nicaragua.  And it is this type of growth that contributes to the stabilization of Nicaragua’s economy, and boosts the attractiveness of Nicaragua as a tourist, investment and retirement destination.

Finally, President Ortega stated, “We are assuming a obligation to unite efforts, the people and government of the United States and the people and government of Nicaragua, in these programs that are humanitarian, in solidarity and to combat poverty……………

Long live the people of the United States!”

Could these statements signal a thaw?  Let’s stay tuned……..

National Minimum Wage Increases

More than 800,000 Nicaraguan workers in various sectors of the labor force will be a little better off now than they were previously—thanks to the government, major labor unions and much of the private sector signing off on an agreement to increase the minimum wage by 12%, which became effective February 1, 2008.      

While this wage hike will not be the answer to everyone’s economic needs, it will help several families to better afford the “canasta basica”—the grocery basket of basic goods—and it will bring some measure of relief in the buying power of several thousand families. 

And the widespread cooperation in passing this legislation shows a general commitment to improving the lives of some of the country’s neediest workers—which in turn, contributes to the improvement of this nation’s economy.   

Government Addressing Land-Reform

When the Sandinistas returned to office last year, one of their major goals was to address an acknowledged error of the first Sandinista administration of the 80’s—the lack of conveying proper title to property owners.

President Ortega announced plans to deliver more than 3,800 property deeds to impoverished families in both rural and urban areas over the next several months.  The families that will benefit already live on the land for which they will receive proper title—thereby eliminating the legal battles and ownership confusion that historically troubled residents.  

Ortega went on to say that the authorities have been “instructed to work fast to guarantee” that all families in Managua who do not currently have proper title become beneficiaries of this program.

This program, together with recent court decisions involving land ownership that ruled in favor of investors, will go a long way toward improving the quality of lives among residents—and it sends a clear message to the world, and in particular foreign investors, that land ownership in Nicaragua will be honored.

More Positive Press for Nicaragua

The Los Angeles Times ran a review of the recently published Cashing In on a Second Home in Central America by Tom Kelly, Rich Creekmore and Jeff Hornberger. After reading the book, the reviewer had this to say:

“But perhaps better deals are to be found in a potentially riskier Nicaragua -- yes, that Nicaragua” -- and it's in dispelling common notions about mysterious countries that this book excels…

“Nicaragua is reportedly the safest of all Central American countries today, according to a study by INCAE, the Harvard Business School affiliate in Managua, and strongly encourages tourism and foreign investment. Moreover, with prices along its Pacific Riviera one-fifth of those in already discovered Costa Rica, a 45-minute drive to the south, local experts claim that the second-home market is now mirroring the first wave of Costa Rican real estate investments by North Americans 20 years ago.”

Those who spend time here discover what the authors have found:   That many fears and misconceptions about the country are leftovers from a civil war that ended nearly two decades ago.

But the good news for investors is that these misconceptions have actually created an opportunity:   They have kept land prices artificially low – on which savvy investors may capitalize.  And those who’ve invested early are already poised to reap the rewards.

Nicaraguan Teachers Gain Ground

The Nicaragua Network Hotline reports that the government signed a new contract with 11 teachers’ unions on January 8. The new contract includes $1 million more than a contract signed last year – and the money is earmarked for improving teacher’s benefits, including retirement health care.

Nicaragua’s Minister of Education, Miguel De Castilla, said he believes the improvements in teacher benefits – some of which are being introduced for the first time in this contract – will result in higher quality education in the country.

… And So Do Students

The Nicaragua Network Hotline reports that the Education Ministry is approaching its goal of enrolling 1.3 million students in Nicaragua’s schools this year. That’s a jump of 100,000 over last year’s numbers.

The ministry has eliminated fees that prevented the country’s poorest children from attending school. They also are providing free school uniforms, backpacks and other supplies to those who can’t afford them. Even children without birth certificates are permitted to enroll.

Because enrollments are being held open until March – to allow time for coffee pickers’ children to enroll at the end of the harvest season – the ministry’s 1.3 million goal appears within reach.

As educational opportunities become available to the entire populace, and the country as a whole becomes better educated, Nicaragua will appeal to even more foreign enterprises that offer or require skilled labor—thereby creating more jobs, improving the economy and perpetuating Nicaragua’s appeal around the globe.   

Nicaragua Ends Power Rationing

Thanks to three resources being added back into the power production mix, Emilio Rappaccioli, Minister of Mines and Energy, recently announced an end to electricity rationing.

The geothermal plant at Ormat/Momotomba, which has been down for maintenance and repairs, should be back on line by the time you read this. The hydroelectric plant at Apanas Lake should also be producing about 50% more power than it has in recent months.

And, finally, two plants powered by sugar cane residue are slated to provide about 60 MW total throughout the sugar cane harvest season. Fast-growing eucalyptus will be used for fuel during the off-season.

Meanwhile, backed by aid from Taiwan, Venezuela and Cuba, two brand new power plants are slated to go online in March and September of next year.

These advances will result in a more widespread supply of electricity, as well as fewer power outages into the foreseeable future-- adding to Nicaragua’s appeal as a viable investment and retirement destination.

Pact with Iceland Improves Nicaragua’s Power Outlook

Energy Minister, Rappaccioli, also recently traveled to Iceland to sign an energy development deal with the island nation’s ICEIDA organization (Iceland International Development Agency).

What do a tropical country and a sub-arctic island have in common? Geothermal potential. Iceland is the world’s leading producer of geothermal power – and geothermal technology. And Nicaragua – like Iceland – has frequent volcanic activity.

Geothermal energy is derived by trapping the heat produced by molten rock (magma) within the cavities of volcanoes.  The magma – and the heat – are close to the earth’s surface in areas of volcanic activity, allowing scientists to tap into this energy source—easily and at a relatively low cost.

ICEIDA will provide the technology and support necessary for Nicaraguan scientists to develop more geothermal power here.   The entire project is valued at approximately $4 billion.

This alternate energy source deal is a tremendous shot in the arm for Nicaragua—a country who historically relies on crude oil as its main energy source for nearly all industries.  Needless to say, this oil dependence drives the prices of everything up—from processed foods to clothing to concrete (Where is Chavez when you need him most?).  By utilizing the natural processes of volcanic activity, geothermal energy will provide a much needed alternate energy source at a fraction of the cost of more traditional sources. 

New Program Targets At-Risk Children

Thanks to a $10 million loan from the Inter-American Development Bank, the Nicaraguan government will launch a new program this month aimed at at-risk children.

The Program of Integrated Care for Nicaraguan Children will target children in 66 communities across the country.   As part of the program, the Ministries of Education, Health and Family will provide support and advice to caregivers of children between birth and six years of age, and will focus on the areas of nutrition, health care, education and recreation.  Food will be provided to children suffering from malnutrition and medical care will be available to families with children who otherwise could not afford proper treatment.

Throughout 2008, the Ministry of Education will also provide funding for 800 new “kitchen gardens” at schools in various regions of the country.   This represents a 700% increase in the number of gardens from the previous year.

The students will benefit from their involvement in everything from preparing the soil to planting, watering, weeding, nurturing and harvesting grains, fruits and vegetables.  And their organic sciences curriculum will be enhanced through the students’ exposure to natural processes like soil erosion, weather impact and photosynthesis.  By tending the gardens daily, not only will the students have personal responsibility for the provision of fresh, healthy meals at school, but they will also develop an awareness of environmental stewardship, an appreciation of the earth and an understanding of the joys of meaningful work.    

Healthcare Options Extended for Poor Families

A recent article in the Nicaragua Network Hotline mentioned public health improvements in Nicaragua, including the staffing of previously shuttered health clinics and wider availability of prescription drugs to the poor.

A very small percentage of Nicaraguan citizens carry health insurance—and out of pocket expenditures for health care, along with lack of access in rural areas, constitute a serious barrier for poor families.  The reopening of health clinics and the provision of pharmaceuticals will help to minimize illness among several thousand residents.

At Rancho Santana, we are proud to be a part of the solution to health care issues and continue to support the Roberto Clemente Clinic with both monetary and in-kind donations. Through this and many other donations, the Clinic is able to provide low or no cost health care to more than 1500 residents in neighboring communities. And Rancho Santana exemplifies a genuine dedication to improving the standard of living in the local community.

Chefs Step in to Aid Felix Victims

Chefs for Humanity (CFH), a non-profit alliance of culinary professionals, in conjunction with the UN World Food Programme, have announced a two-year, cooperative initiative to assist victims of Hurricane Felix from the Wawa Boom community in Nicaragua.

Felix displaced thousand of residents from villages along the Wawa River—a section located in Nicaragua’s North Atlantic Autonomous Region. Currently, nearly 350 of these refugees – mostly from the Wawa Boom community – are housed in tents donated by USAID – about 20% of them are children under the age of five.

During Phase One of the WaWa Boom Project, as it’s called, CFH will coordinate with local officials to purchase basic necessities, including shoes for the children, dishes, cooking pots, rubber boots for men, soap, instant milk, canned fish, sugar, flour and corn. In addition, the organization will purchase tools for rebuilding and planting, including machetes for each family, a community chain saw, axes, lumber, nails, and hammers.

Phase Two and Three will consist of building solid living shelters and a school; a potential “volun-tourism” program in November 2008 to bring man power and supplies to the community for rebuilding; and the development of sustainable enterprise for the community. Under consideration as enterprises are agricultural solutions, solar stoves, a cooperative childcare facility and additional food program support.

This project illustrates the cooperative efforts of the international community and US government and private sectors in reducing poverty and establishing a quality standard of living in Nicaragua.  And it is with obvious, increased frequency (and great pleasure) that I am able to write to you each month about the nations of the world embracing Nicaragua and addressing its social issues.

“.. safe, easy to reach and an excellent, undiscovered destination to be experienced now as it was meant to be experienced…

“It’s like St. Barth’s without the attitude”

                                                                                                              NBC’s Today Show

"Word is getting out about this country. But it's not simply because the property deals are so attractive or the cost of living so affordable. It's because this country boasts a stable democracy, a booming economy and one of the most comprehensive incentive programs anywhere."

MSN.com

“Relative ease of purchase, tax incentives, low crime and a laid-back lifestyle on a gorgeous stretch of coast make Nicaragua appealing."

L.A. Times

   

“This Central American nation is emerging as a US retirement heaven. Cheap land surrounds picturesque crater lakes and active volcanoes…and the cost of living is a fraction of what it is in the United States.”

Christian Science Monitor

"Nicaragua is virtually unknown to most people and usually misunderstood, which is why forward-thinking investors can find some of the best real estate deals on Earth in this country."

MSN Money

“In short, Nicaragua is easily accessible, safe, attractive and inexpensive, and investment opportunities are timely."

Pittsburg Post-Gazette

Top 5 Latin American Real Estate Markets

Although Nicaragua is known for its history of political instability and conflict, the previously war-torn nation is desperately trying to attract foreign investment. Government incentives have made Nicaragua real estate appealing to investors, as Nicaragua’s attractions continue to draw more tourists and expatriates.

Nicaragua could become an ideal retirement and vacation destination for millions

“Because Nicaragua has historically been overlooked by travelers and real estate investors [in comparison] to Costa Rica, Panama, and Mexico, prices have remained extremely affordable,” Henkel Smith, president of Water’s Edge International Realty, said. “Nicaragua's real estate market is definitely still in its infancy, but we see things changing as the number of foreign visitors and investors continue to buy up properties.”

The country has an abundance of natural resources, beautiful landscapes and a government that claims to be welcoming towards foreign investment and tourism. Assuming the government’s expressed attitude towards foreign investment is genuine, Nicaragua appears to be an investor's dream, offering an ideal retirement and vacation destination for millions of people, especially Americans and Europeans.

On the other hand, some investors might find Nicaragua’s political structure to be intimidating; those who perceive President Daniel Ortega’s position of power as threatening have been discouraged from entering the market. Nevertheless, optimistic investors believe that Ortega’s personal investment in business and tourism projects around the country are a sign that he plans to take a different path this time in office, and that the President is now trying to make amends for his violent past as a young Sandinista revolutionary.

Nicaragua’s investment hotspots are Granada, a colonial town on the bank of Lake Nicaragua, and San Juan Del Sur, a booming fishing village located on the Pacific Ocean just north of Costa Rica. Although a profusion of new developments are happening along the Pacific coast, most of the country awaits significant advancements in infrastructure, providing investors with opportunities to buy property in almost any price range.

www.nuwireinvestor.com

Humanitarian Works

Building the Second Fence: A slightly Different Experience

By Greta Schlender and Ligia Diaz

As part of the ongoing effort to improve life in Villa El Carmen, CHESS partnered with the Ormond Beach Rotary Club to install fences at as many schools as possible. In late August, the first fence was installed at Osneida Medrano School. Although the project had its share of ups and downs, Rotarian Chapter President, returned with several other members to continue their good works. The site of the second installation was the Calle Nueva School; this school employs 3 teachers who are responsible for educating 68 students in grades K through 5. Built in 2000, the school used to have a fence but it had stolen, bit by bit, over the years.

On Thursday, October 25th, Mr. Slick and his group of fellow Rotarians, began their mission. The Rotarians that came with Mr Slick were quite a mixed group, all joined together by the desire to have this unique life experience and make a difference in the lives of children. For two men of the group, this trip to Nicaragua was their first visit to a foreign country. One, Mr. Slick joked, “is the pickiest eater he had ever met” and yet, the man happily ate all the food prepared by local mothers. Another is an executive of a large real estate company, while a third runs an oil and gas company. Two of the men drive race cars professionally.

The team installing the first fence in August 2007 at Osneyda Medrano School was faced with many unexpected challenges. This time, the weather cooperated and the supplies arrived on time. A larger group of workers allowed the project to be completed in just two days. The workers learned that one of the most important things about building the fence was making sure that the fencing itself could not be pulled apart and stolen. As a result, each piece was soldered to as many other pieces as possible, ensuring that none of it could be taken away. When questioned as to why fences are so important to the community, the parents and teachers gave several answers, ranging from keeping chicken out of the yard during school hours to deterring theft.

To reinforce that point, one of the parents shared the story of one such theft. Schools in Villa El Carmen are given provisions for their students just once a month, breakfast and snacks for the children on school days, are stored in one of the classrooms in the school. One day, these provisions were stolen from the classroom by someone in the community, most likely out of desperation, but stolen nonetheless. The children were left without this food for the majority of the month, something which should not have to be a concern. A fence could have at least deterred this theft, and this is one important reason it needed to be built.

The school community was so thankful for the help of the group, saying that this was the first time anyone had come to help them; that it was a gift from God. Mr. Slick said that these experiences are something “breathtaking and rewarding,” a chance for people to “invest of themselves” and promote “enlightened self interest” in a country that desperately needs it.

This, more than anything else, is what keeps CHESS and Mr. Slick making schools more secure. Nothing can replace the smiles and thank you’s they get in return for just a day or two of fun work, work in which the whole community gets involved, and for which they really are eternally grateful. Mr. Slick said. “We were here [with them], and the community never left us.” He added that the efforts of the community are something to be revered and that it is “and absolute trip” to see everyone get so wholeheartedly involved.

The Ormond Beach Rotary Club has served for several years in different projects in Nicaragua. Mr. Slick recounted how relationship started six years ago, when they put on a BINGO night to finance CAT scans and MRI’s for children in need. The project was expanded in 2004 and groups have come down to replace air conditioners, paint buildings, clean hospitals, and bring supplies. Donations as large as entire shipments of hospital beds have been delivered by the group. Mr. Slick said that it might be easier to just front the money and pay someone to do all of these things, but it is just so much fun that people are always ready to participate

This has been a heart-touching experience for all those who have been involved and we even received this eloquent e-mail we hope touches your heart also!

www.chessnicaragua.com

Poyner & Spruill Health Care Attorney Ken Burgess Receives 2007 Volunteer Of The Year Award

Raleigh, NC -- Poyner & Spruill Partner Ken Burgess has been selected as 2007 national Volunteer of the Year by the Jessie F. Richardson Foundation. The Foundation, located in Clackamus, Oregon, supports projects in the U.S. and around the world designed to promote health care and related services to seniors. The award is based on Ken’s efforts to raise money for the renovation and expansion of a shelter for homeless seniors in Jinotepe, Nicaragua which will be not only a home for its residents, but a center of health care for the entire community.

The center is the first of its kind in Nicaragua, and one of the few in Central America, but it’s likely to become a model for similar programs in that part of the world, according to Burgess. In addition to renovating and expanding the center itself, the money raised by Burgess and Poyner & Spruill is helping with a number of related projects designed to ensure the center’s long-term financial stability, bring medical care to the residents, and help train some of the 500,000 abandoned street children of Nicaragua in services they can provide to seniors at the center or elsewhere, helping them learn trades that also keep them off the streets and away from lives of sexual abuse, drug addiction and poverty.

“Few things I’ve ever done have given me such a sense of satisfaction as this project. The generosity of my firm, my family, and my professional colleagues in different parts of the country have moved me beyond words,” said Burgess.

Ken is a long-term care attorney advising clients on a wide variety of legal planning issues arising in the skilled nursing facility setting, assisted living setting, and other spheres of long-term care. He is a frequent national lecturer and author of industry manuals, national trade journal magazine articles and similar training tools. He serves Poyner & Spruill clients by focusing on legal issues impacting the long-term care and health services sector.

Ken graduated from the University of North Carolina with a B.A. in 1979, and received his J.D. cum laude from Campbell University Law School in 1984. He can be reached at 919-783-2917 or kburgess@poynerspruill.com.

About Poyner & Spruill
Poyner & Spruill LLP is a large, multidisciplinary North Carolina law firm, providing a comprehensive range of business and litigation legal services. The firm has a reputation for professional excellence and client service throughout the Southeast. Poyner & Spruill, one of the largest firms in North Carolina, has over 110 attorneys with offices in Charlotte, Raleigh, Rocky Mount, and Southern Pines.

www.poynerspruill.com

WOW: Week of unusual learning is “incredible”

Trinity Episcopal students' experiences include Nicaragua trip

STEVE LYTTLE

Dozens of students from Charlotte's Trinity Episcopal School recently spent several days engaged in a variety of unusual educational activities.

It was part of the school's annual Without Walls Week (WOW Week), which took place Feb. 19-22 for students in grades 5 through 8. WOW Week is designed to allow the school's older students a chance to participate in outside-the-box learning experiences.

One group of students traveled to Nicaragua. Another group spent the four days at the U.S. National Whitewater Center. Yet another activity, "Project Runway," allowed students to experience the fashion world.

There also was "Searching for Balance," a class devoted to finding strength and peace through activities such as kickboxing and yoga.

The Nicaragua trip involved 26 Trinity Episcopal students and several parents and staff members. They worked at the El Ayudante Orphanage in the city of Leon. The group tutored students and took part in repair work at the orphanage.

Tom Drake, Trinity's academic dean and a participant in the Nicaragua trip, said, "Of the profound learning that occurred for all on this trip, the strongest piece emerged from the relationships that we formed with the various people we met on our journey."

Seventh-grader Sarah McDonald said: "We met incredible people and learned a lot about ourselves, like how we can help in the world and that we should be grateful for what we have."

www.charlotte.com

Belize Update

ECI planning condominium in Belize

Company also eyes Argentina, Panama, Costa Rica

Pittsburgh Business Times - by Tim Schooley

ECI Development Ltd., a Pittsburgh-rooted resort development firm with two facilities in Central America, is launching a new project in Belize.

After launching an ambitious plan to develop a 2500-acre resort community on the west coast of Nicaragua and acquiring an oceanfront swath of property in Costa Rica two years ago, the company is now pursuing a $20 million-plus condominium community called Grand Bayman in English-speaking Belize.

"Belize is very strategic," said Michael Cobb, CEO of ECI and a native of Butler County. "If I can provide what the consumers want, then I don't have to sell anybody anything."

ECI has more than 60 investors, many of which are based in the Pittsburgh area.

For the Grand Bayman project, Cobb and his former Allegheny College roommate, Sewickley-based lawyer Joel Nagel, are combining the 1-acre beachfront property they already own with a 5.5-acre property behind it.

The initial 1-acre tract was merged into the 5.5-acre parcel, which already includes a swimming pool and private club facilities.

ECI acquired 71 percent of the combined property in what was largely a private stock trade for real estate with an estimated value of $4.5 million.

ECI is working to develop more than 200 condominiums on the property, which is located close to the resort town of San Pedro. The development includes a new 60-unit condominium hotel on the beachfront parcel that will replace the 22-unit condominium development there now.

As with Gran Pacifica, the company's Nicaraguan development, the Grand Bayman project is being designed by Urban Design Associates, based in Downtown Pittsburgh, which has been planning the resort development as a new urbanist community expected to tuck commercial and public space into a residential framework.

Don Kaliszewski, a principal of UDA who worked on the Belize project, said he studied the British colonial development patterns in Belize City to establish the design.

"This will definitely be the first new urban plan there," he said. "Belize really is kind of an untapped market for new development, especially something that's not a traditional resort development."

ECI expects the Belize development will take five years to complete. That would be substantially faster than both the ECI project in Nicaragua, where hundreds of homes are expected to be built over a 20-year period, and the Playa del Sol project on the Gulf Coast of Costa Rica, a 12-to-15-year development.

Gran Pacifica's plans in Nicaragua were delayed by last year's election of former Sandinista leader Daniel Ortega as that country's president.

While his election has meant no real policy changes for Gran Pacifica, the development has faced delays nonetheless, establishing only four residents so far and completing an estimated 8 percent of the development.

The Gran Pacifica development also expects to open with a resort hotel.

ECI also is pursuing other developments to offer potential buyers, including retirees, with a host of different resort condo options. Cobb expects to begin developing a condo resort in the wine region of Argentina, Panama and the highlands of Costa Rica.

"By having multiple geographic choices, we can address what the client wants," he said.

www.pittsburgh.bizjournals.com

Go back to main Nica Newsletter

---

Go back to top