Nicaragua, China set to close energy project deal

Nicaragua’s President Daniel Ortega has approved the signing of an agreement to build a large-scale solar plant in Matagalpa department.

The green light authorizes the energy and mines ministry’s power and renewable resources director to ink the deal for the 67.4MW El Hato project with China Communications Construction Company (CCCC), according to the country’s official gazette.

Ortega also cleared the signing of a credit agreement between the finance ministry’s capital markets advisor and CCCC for 492mn yuan (US$68mn) to build the plant in Ciudad Darío municipality.

The project falls under the umbrella of renewed relations between the countries.

In December, Nicaragua and China deepened ties with a strategic partnership following the signing of a free trade agreement in August.

The Central American nation reestablished diplomatic relations with the Asian giant in 2021 and cut ties with Taiwan.

In recent days, Nicaragua’s national assembly approved a financing deal with China CAMC Engineering to support the build-out of liquid petroleum gas infrastructure.

And at the end of last year, the assembly greenlit a credit facility agreement for nearly 66mn euros (US$70.5mn) signed by the government and CCCC to build a photovoltaic plant for state water utility Enacal in San Isidro municipality.

China Civil Engineering Construction Corporation, meanwhile, is participating in the development of a high-speed electric rail link in Nicaragua, and China CAMC Engineering is helping upgrade the Punta Huete airport, which serves capital Managua.

Also read CentAm firm lands Nicaragua solar project contract and Studies underway for Nicaragua wind project