[NYTr] Iran Offers Aid to Nica in Sign of Deepening Ties

[All the News That Doesn't Fit]

Reuters - August 6, 2007
http://www.nytimes.com/2007/08/06/world/americas/06nicaragua.html


Iran Offers Aid to Nicaragua, in a Sign of Deepening Ties

MANAGUA, Nicaragua ? Iran has promised to help finance a new $350
million ocean port and build 10,000 houses for the leftist Nicaraguan
government, in a deepening of ties between the governments that has
raised concern in the Bush administration.

Iran has also pledged to choose in November a site for a $120 million
hydroelectric project, to help Nicaragua overcome a power crisis, which
has confronted Nicaraguans with blackouts nearly every day.

The Iranian aid projects were announced Saturday by the Nicaraguan
president, Daniel Ortega.

Despite American warnings, Mr. Ortega has been building alliances with
countries like Venezuela and Iran, which the Bush administration
considers unfriendly and which are flush with cash from high oil
prices. Both are eager to build close alliances in Latin America.

The deep-water port on the Caribbean coast would be a first for
Nicaragua. Venezuela would also provide money for it, Mr. Ortega told
reporters.

?We will work to combine Iranian investment with other friendly
countries,? Mr. Ortega said. ?Venezuela would be ready and willing to
take part in an effort like this.?

The United States Embassy in Managua had no immediate comment on the
Nicaragua-Iran agreements. American officials have said Iran could be
a ?problematic? partner for Nicaragua.

Mr. Ortega, a former Marxist guerrilla who won power for a second time
in January, is eager for help to end blackouts that have been hurting
his popularity.

He met here on Wednesday with Iran?s deputy energy minister, Hamid
Chitchian, to try to convince Iran to help build several hydroelectric
plants in Nicaragua to help end the power crisis. Iran has committed to
just one plant for now.

In return, Nicaragua hopes to increase its farm exports to Iran, mainly
coffee, meat and bananas.

The Iranian visit followed Mr. Ortega?s trip to Tehran in June and a
visit to Managua in January by President Mahmoud Ahmadinejad of Iran.

Mr. Ortega also said that he had also sought Brazil?s aid to end the
energy crisis. Brazil?s president, Luiz Inácio Lula de Silva, will
visit Nicaragua in the near future.