Nicaragua signs US$300mn highway loan deal with China

The Nicaraguan government signed an agreement to fund the second stage of the Costanera highway, local media reported. 

The 2.1bn-yuan (US$292mn) loan deal was signed by Nicaraguan and Chinese government officials along with Chinese state company CSCEC International Construction. 

“The construction and conclusion of this project will improve transport efficiency, boost international trade and promote tourism,” said CSCEC vice president Xu Lixin during an online ceremony, according to Chinese broadcaster CGTN. 

The more than 200km Costanera highway, also called the Pacific coastline route, will connect the communities of El Naranjo and Masachapa and improve access to public 87 beaches.

Nicaragua’s transport and infrastructure minister Óscar Mojica said the highway is only one of the projects built in collaboration with China that will help to develop the Central American country.

“This is the second stage of a great project towards progress, of historic transcendence that we have started with the first 119km where construction is in progress, and with this [agreement] we would be talking of more than 200km during the next few years,” said Mojica, according to CGTN.

Nicaragua established diplomatic relations with Beijing in 2021. Since then, the partnership between the two nations has been described as “strategic” by both governments and has led to the announcement of multiple joint infrastructure projects including the construction of Punta Huete international airport and other road projects. 

Nicaragua is also seeking to establish a trade agreement with China, which is reportedly the subject of talks.