Nicaragua Refinery Project Unfunded

LA PRENSA/OSCAR NAVARRETE
LA PRENSA/OSCAR NAVARRETE

TODAY NICARAGUA – The construction of the refinery El Supremo Sueño de Bolívar in Miramar, remains paralyzed as the government seeks funds to finance the second phase, the refinement complex.

At the moment, only the storage and distribution complex has been finished, works which were funded by Venezuela, but according to the agreement signed “… When oil is at $50, only 40% of that price is given in financing to the beneficiary country.” Because of this, the government is seeking foreign funding for a second phase, but international conditions are not the best for resources for a project that “… does not seem to be profitable.”

Laprensa.com.ni reports that “… If oil stays below $50 … there is no chance of the second phase starting, which in itself is already a year behind according to the implementation schedule of the mega-project given out at the time by Albanisa. Investing in building a refinery currently is not profitable for any international investor. ”

“… During a tour of the complex being built in Miramar, it was revealed that at this second phase they are barely carrying out soil studies. The refinement complex requires $4,165 million, which will be invested between 2014 and 2017. But figures from the Central Bank of Nicaragua indicate that Venezuela between 2008 and the first half of last year has only invested in this project a little over $230 million. ”

Source: laprensa.com.niAt the moment, only the storage and distribution complex has been finished, works which were funded by Venezuela, but according to the agreement signed “… When oil is at $50, only 40% of that price is given in financing to the beneficiary country.” Because of this, the government is seeking foreign funding for a second phase, but international conditions are not the best for resources for a project that “… does not seem to be profitable.”

Laprensa.com.ni reports that “… If oil stays below $50 … there is no chance of the second phase starting, which in itself is already a year behind according to the implementation schedule of the mega-project given out at the time by Albanisa. Investing in building a refinery currently is not profitable for any international investor. ”

“… During a tour of the complex being built in Miramar, it was revealed that at this second phase they are barely carrying out soil studies. The refinement complex requires $4,165 million, which will be invested between 2014 and 2017. But figures from the Central Bank of Nicaragua indicate that Venezuela between 2008 and the first half of last year has only invested in this project a little over $230 million. ”

Source: laprensa.com.niAt the moment, only the storage and distribution complex has been finished, works which were funded by Venezuela, but according to the agreement signed “… When oil is at $50, only 40% of that price is given in financing to the beneficiary country.” Because of this, the government is seeking foreign funding for a second phase, but international conditions are not the best for resources for a project that “… does not seem to be profitable.”

Laprensa.com.ni reports that “… If oil stays below $50 … there is no chance of the second phase starting, which in itself is already a year behind according to the implementation schedule of the mega-project given out at the time by Albanisa. Investing in building a refinery currently is not profitable for any international investor. ”

“… During a tour of the complex being built in Miramar, it was revealed that at this second phase they are barely carrying out soil studies. The refinement complex requires $4,165 million, which will be invested between 2014 and 2017. But figures from the Central Bank of Nicaragua indicate that Venezuela between 2008 and the first half of last year has only invested in this project a little over $230 million. ”

Source: laprensa.com.ni