China is intending to build a $430 million airport and gas terminal in Nicaragua
Nicaragua signed a $430 million loan with China to finance a Chinese company’s construction of an international airport and a liquefied gas terminal, in a move that falls within the framework of the strategy to get rid of the dollar, officials announced.
The agreement was signed after a phone call between the President of China, Xi Jinping, and the President of Nicaragua, Daniel Ortega.
China and Nicaragua resumed their diplomatic relations in 2021 after Managua’s coup against its relations with Taiwan.
Laureano Arotiga Murillo, advisor to the Nicaraguan president for investments, trade and international cooperation, and his son, described the relationship with China as a strategic partnership.
The Chinese loan will be used to finance the international airport project in Punta Uite and the project to build a gas plant in Tres Isveiras, two sites close to the capital.
Nicaragua’s Minister of Finance and Public Credit, Ivan Acosta, announced that the issue is related to obtaining large resources for the country, more than $430 million, considering that this money, which will be paid in yuan, is an important gain for the country within the framework of the strategy to get rid of the dollar.
The Chinese public company, China CAMC Engineering, will work to reconstruct, expand and improve the Punta Uite airstrip, located 60 kilometers north of Managua, in addition to the gas station.
The new airport will allow improved flights between Nicaragua, Asia, Europe and other regions.
China and Nicaragua, which signed a free trade agreement on January 1, accelerated their cooperation by reformulating their diplomatic relations in 2021, with Managua abandoning its diplomatic relations with Taiwan.
In recent years, China has significantly intensified its military and political pressure in Taiwan, which Beijing considers a rebellious province to which it will one day return.
In Central America, only Guatemala and Belize have diplomatic relations with Taiwan.
Honduras was the last country to change its position last March.
