VZCZCXYZ0001
RR RUEHWEB

DE RUEHMU #1938 2442220
ZNR UUUUU ZZH
R 012220Z SEP 06
FM AMEMBASSY MANAGUA
TO SECSTATE WASHDC 7451

UNCLAS MANAGUA 001938 
 
SIPDIS 
 
SIPDIS 
 
STATE PLEASE PASS TO USTDA/KMALONEY 
 
E.O. 12958: N/A 
TAGS: EAID EAIR ECON EFTA EIND ETRD EWWT NU
SUBJECT: NICARAGUA: USTDA SIGNS GRANTS WITH NATIONAL PORTS 
AND AIRPORTS COMPANIES 
 
REF: STATE 140180 
 
¶1. (U) Summary: USTDA Director for Policy and Programs Geoff 
Jackson signed two grants for feasibility studies with 
Nicaraguan entities in Managua on August 29.  The first was 
with the National Ports Company to fund a $430,000 
feasibility study on expanding cargo handling facilities and 
improving security at the Port of Corinto.  The second was 
with the International Airports Company to fund a $324,000 
feasibility study on designing and constructing a new cargo 
terminal at Managua International Airport.  Vice President 
Alfredo Gomez spoke at the airports signing ceremony along 
with the DCM, both of whom emphasized the growing economic 
partnership between our two countries under CAFTA.  End 
Summary. 
 
¶2. (U) USTDA Director Geoff Jackson and Country Manager Kate 
Maloney visited Managua on August 27-30 to finish negotiating 
two grant agreements for feasibility studies related to the 
expansion of cargo handling capability at the Port of 
Corinto, the nation,s largest port, and Managua 
International Airport, the nation,s largest airport. 
Negotiations were consummated with successful signing 
ceremonies on August 29, both of which received generous 
press coverage.  Speakers emphasized the value of the growing 
bilateral and economic relationship between Nicaragua and the 
United States under CAFTA. 
 
¶3. (U) National Ports Board Chairman Alejandro Fiallos used 
his meeting with Director Jackson on August 28 to also press 
for technical assistance in developing legislation that would 
enable the ports company to operate more like a commercial 
entity.  Currently, no specific law applies to the ports 
company, leaving Fiallos to wrestle with general government 
procurement law and limitations on funding sources.  He would 
like his state enterprise to be able to take on financing, 
enter into joint ventures with private sector companies, and 
grant commercial concessions.  Jackson agreed to look into 
the possibility of providing technical assistance in this 
area. 
 
¶4. (U) On August 29, Fiallos and Jackson signed a grant 
agreement to fund a $430,000 feasibility study that would 
recommend alternatives for expanding cargo handling 
capability at the port of Corinto.  The event attracted the 
press, and received extensive coverage in local television 
news and newspapers. 
 
¶5. (U) With a legal framework in place, the National Airports 
Company can operate more freely than the ports company. 
Board Chairman Lacayo Rappacioli,s runs the company along 
commercial lines and this freedom has allowed him to expand 
and improve airport facilities.  His latest project is to 
lengthen Managua International Airport,s runway another 800 
meters to give comfort to fuel laden jumbo aircraft requiring 
longer runways for takeoff, and to secure airport operations 
in case an earthquake ruptures an existing fault a third of 
the way along the runway.  Airports Executive Director 
Alfredo Chamorro is anxious to get started on a new cargo 
terminal at Managua International, the primary object of 
USTDA,s feasibility study.  The study will recommend 
construction, equipment, and financing alternatives.  Also 
included in USTDA,s study will be recommendations for a 
modern runway lighting system and equipment to improve 
security. 
 
¶5. (U) The signing ceremony for the $324,000 grant took place 
at the proposed site of the new cargo terminal.  The event 
was well attended and well covered by the press.  Vice 
President Alfredo Gomez and the DCM signed the grant as 
witnesses, and spoke to an audience of about 70 people.  Both 
emphasized the growing economic partnership between our two 
countries under CAFTA.  Other attendees included the Minister 
of Transportation, Secretaries General for the Departments of 
Finance and Trade, Vice Minister of Defense, high level 
customs officials as well as representatives from the private 
sector. 
 
¶6. (U) In other meetings with Nicaraguan authorities and the 
InterAmerican Development Bank, Director Jackson introduced 
USTDA and discussed the prospect of various feasibility 
studies for power generation as well as technical assistance 
in the areas of power sector regulation and small business 
networking. 
TRIVELLI