“The Gates of Nicaragua Are Always Open to Mr. Rouhani,” States Nicaraguan Ambassador

Over the past few years, the Nicaraguan Government arranged numerous plans aimed at the economic development of the country which is now underway while attracting foreign investments. To study the procedure of implementing the economic projects in this country and also the economic ties between Tehran and Managua in the post-JCPOA, we held an interview with Nicaragua’s Ambassador to Iran.

AVA Diplomatic’s Exclusive Interview with

Nicaragua’s Ambassador to Iran, Mario Barquero Baltodano

Interview by Mohammadreza Nazari

When Mr. Daniel Ortega became President of Nicaragua once again in 2007, what priorities did he change in his plans?

When the last Presidential election was held in 2007, Mr. Ortega won 36% of the votes, but an international opinion poll was conducted nearly two weeks ago and the results indicated that his popularity has risen to 70%.

Normally, any President can partially lose their popularity over the years, but Mr. Ortega’s popularity has been moving on an upward trend which is not a coincidence, and the reasons for it are his works in Nicaragua.

Following Mr. Ortega’s approach, poverty has lessened in Nicaragua, illiteracy has decreased, and Nicaragua is constantly attracting foreign investments. In tourism, Nicaragua has been able to increase tourism attractions up to one million tourists a year.

Also, the number of houses which now use water through piping systems has gone up, the process of electricity generation has completely changed and more than 50% of Nicaragua’s needed energy is supplied using renewable resources. All these are reasons for people to see and appreciate Mr. Ortega’s achievements.

Currently, we are engaged in constructing a canal to connect the Atlantic Ocean to the Pacific Ocean.

Is this canal considered to be a rival for the Panama Canal?

The length of this canal is about 287 kilometers. We do not call it rivalry, and these two canals rather complement each other.

What stage is the construction of this canal at? What are the countries and companies that stepped up to do it?

The nature of the operation of the companies involved in this stage of this canal is purely consultative, and they are conducting feasibility studies (FS) for it and calculating its impact on the country’s environment. These are, of course, international and authentic companies from countries such as Australia, the UK and the Netherlands. These preliminary studies are aimed at bringing environmental damages of the project to a minimum.

News has it that in June 2013, Nicaragua signed a 50-billion-dollar agreement with China’s HKND that construes the granting of a 50-year concession to finance and manage the project to the private Hong Kong Nicaragua Canal Development Investment Company (HKND Group). Is that true?

Yes, it is true.

Considering the 50-year exclusivity right given to this Chinese company, what is the role of other companies and countries in the project?

The reason why Nicaragua cooperates with this company is because it does not have enough capital at its own disposal and needs to think of attracting foreign investments, but that does not question Nicaragua’s ownership of this canal, even less our sovereignty.

This is, in fact, a totally commercial agreement and unlike the Panama Canal which is as if it belonged to the US, the ownership of this canal will remain in the hands of Nicaragua. It is not just this Chinese corporation that has this chance, but any other international company can have a share in this project and Nicaragua welcomes the coming of investments from any country to contribute to the construction of this canal.

Is the construction of the airport and fuel pipeline, which are planned through this canal, also done by this company?

The canal project is only one of the many projects we have planned to put into practice. Constructing cities, creating free zones, creating touristic spots and building an airport and two ports are other projects we are studying, and it is not only this canal. That is what makes space for other countries to engage in these projects.

But it was on the news that the Chinese company has promised to deliver the project by the end of 2019, is that so?

The canal is still within its first phase and the practical stages are yet to begin, and according to the studies, it will take something from 5 to 7 years.

Nicaragua’s export used to be dependent on products such as coffee and beef, but recently, Nicaraguan officials started trying to diversify its exported items. How is that working out?

Most of what Nicaragua intends to export consists of agricultural products, and after that comes gold. Also taking into account the establishment of free zones, it has plans to export whatever product that is made in these areas.

You mentioned the export of gold. It has been quite a while since gold mineworkers went on a protest. Please tell us more about it. Has the unrest affected the gold export volume?

It is only true about one case of objection and only one mine. The mineworkers were asking for higher salaries and benefits which was settled by the timely intervention of the Nicaraguan government. Presently, gold mines are normal and stable and that incident did not have any substantial influence on the export.

What was published of their demonstration and the arguments that happened on its sidelines were very violent.

It really matters who had taken those shots. You are a journalist yourself and you well know how these pictures can be distorted or displayed in other ways. But if you look at the present-time pictures of the mines, you will see the mineworkers are peacefully working.

Are goldmines in Nicaragua run by Canadian companies?

Yes, that is right. The US, of course, has made some investments in this field, but most of the mines are administered by Canadian companies.

How long will Canadian companies have control over goldmines?

Things are different for each mine, but you could say for 20 years.

Is the profit they give to the Nicaraguan government fair? Does Nicaragua have any plans to nationalize its mines?

In 1980 and based on the revolutionary thoughts of the Sandinistas, the mines in Nicaragua were nationalized. But in the 90s, when the liberal government rose to power in the country, the mines become privatized.

President Ortega, of course, announced a while ago that Nicaragua does not intend to re-nationalize its mines once again, for to nationalize them demands a lot of time and energy and shall employ a large section of the Nicaraguan organizational system.

Of course, the government of Nicaragua expects those companies who have these mines under control to fully respect Nicaragua’s labor law and environment.

There are parts of Nicaragua called “lecho del arroyo”. They intended to obtain the legal permissions to establish a mine, but President Ortega dismissed that request, because according to the conducted researches, it became certified that building a mine would negatively affect the environment. President Ortega’s government is very sensitive when it comes to labor law and environment.

Does the government of Nicaragua earn considerable profits from the mines that are being run by foreign companies?

Just like any other country, Nicaragua carries out exports which earn taxes for the government, creates jobs, and exchanges technology.

Foreign investments in every country leads to the flow of capital and part of that stays in the country as well. Every bit of this flow results in the promotion of production levels, job creation and technology. The collected tax is, of course, invested in the public health. Even wealthy European countries are after attracting foreign investments. But considering its conditions, Nicaragua has more reasons to do that.

Nicaragua imports most of its needed fuel from Venezuela. Has the extreme drop in the Venezuelan currency become a factor for increased fuel imports from this country?

No, the fluctuation in the value of the Venezuelan currency does not make any difference to Nicaragua. All of Nicaragua’s international trades are done in dollars, but among the ALBA countries, there is a currency named “sucre” (Spanish: Sistema Uniario de Compensación Regional, English: Unified System for Regional Compensation), which, in spite of not having physical availability, is used in their trades. That is why the rise or fall of a country’s money value would not affect its trades with the ALBA states.

It was on the news that Venezuela sells its oil to Nicaragua and other ALBA countries at a lower price than the global value. Is that true?

The price of oil is set on a global scale and trades in this category must comply with the global price.

Compared to the Caribbean countries and Central America, Nicaragua faces lesser extents of corruption. Why do you think that is?

I cannot render an analysis on corruption in Nicaragua or any other country, but I can say that organizational corruption in Nicaragua is much lower, because all President Ortega does is aimed at curbing corruption to its lowest and if a case of corruption comes to light, the Nicaraguan judicial system takes action effective immediately.

After the Sandinistas’ revolution, all of the employees of the government of Nicaragua began to work more committedly and in 1979, when the revolution took place, many of them did not even ask for their salaries. They only wanted to be of service; of course today salaries are paid in the normal way in the relation between employee and employer.

In the 90s, of course, at the time of the liberal government, a few cases of corruption were spotted. Even one of Nicaragua’s Presidents, Arnoldo Alemán, was imprisoned because of corruption once his terms of presidency came to an end.

However, no one tends to perpetrate an illegal act considering the Sandinista spirits. I do not want to imply that we are all saints, but there is no fundamental corruption in Nicaragua and if it becomes evident that there is ongoing corruption somewhere, the judicial system of Nicaragua takes fast action against it.

Can you describe “revolutionary spirit” in one sentence?

Being a Nicaraguan, being a Sandinista, being revolutionary and possessing Sandinista thinking are the best way to define the revolutionary spirit.

In the 1920s, Sandino fought American soldiers and during these fights, he established a nationalistic spirit. He always said with honor that “in my veins flows Indian blood.”

After the battles, American troops left the Nicaraguan soil, but they brought a puppet named “Somoza” to power in Nicaragua.

When Somoza was in charge of the National Guard, he lured Sandino to the capital pretending he sought a dialog with him, and then assassinated him using that very guard, and at the end of the day, Sandino had lost his life because of his ideology. Sandino’s revolution is still alive in Nicaragua.

With your permission, we would like to move to the political and economic ties between Iran and Nicaragua. Will a joint economic commission be formed once the sanctions against Iran are gone?

We hope it will.

Is a specific plan drafted for that?

Nothing has been determined yet, but we are working on it.

Will we see a political committee visit Iran from Nicaragua?

There have been many committees that travelled to and fro between Iran and Nicaragua and the political relations between the two countries are excellent. But what should be focused on more is the commercial ties between them.

Have you suggested to the Ministry of Foreign Affairs that Mr. Ortega pay Iran a visit?

I cannot invite him on my own, but it is Mr. Rouhani who should make this invitation. But I repeat once again that the political ties between the two countries are excellent and if we see the two Presidents visit each other’s countries, it should not come off as surprise at all.

Do you not think that in Mr. Rouhani’s terms less attention is paid to Latin America than Mr. Ahmadinejad?

I would like to ask you the same question. What do you think about that as an Iranian?

When comparing the Rouhani Administration to the Ahmadinejad Administration, it can be said that considering the extension of interactions with other countries, little focus is being put on Latin American countries.

Then Iranians should recommend that Mr. Rouhani take a trip to Nicaragua.

Why does Mr. Ortega not invite Mr. Rouhani for this purpose?

The gates of Nicaragua are always open to Mr. Rouhani; and to any of our Iranian friends.