NICARAGUA: AMBASSADOR CALLS ON NEW MINISTER OF

UNCLAS MANAGUA 000467 SIPDIS SENSITIVE SIPDIS STATE FOR OES E.O. 12958: N/A TAGS: SENV EAGR EAID EIND NU SUBJECT: NICARAGUA: AMBASSADOR CALLS ON NEW MINISTER OF ENVIRONMENT AND NATURAL RESOURCES REF: MANAGUA 0405 ¶1. (SBU) Summary. The Ambassador met with new Minister of the Environment and Natural Resources Amanda Lorio Arana to discuss potential collaboration on environmental programs. The Ambassador described the breadth and depth of U.S. environmental projects and programs in Nicaragua, including a CAFTA-DR Environmental Cooperation Agreement, a new $3.6 million Global Development Alliance with the Rainforest Alliance, and a new natural resource management activity with the U.S. Forest Service to improve the effectiveness of protected areas and preserve biodiversity. Lorio told the Ambassador that she planned to instill a new focus at the Minister of Environment and Natural Resources (MARENA) on watersheds and water resources. She emphasized that another part of her job will be to change attitudes toward littering and cleanliness. In the medium- to long-term, Lorio believes that MARENA will have to develop the capability to evaluate the environmental impact of the new petroleum refinery proposed by the Venezuelans. Finally, she said that she saw another one of her responsibilities as preparing the population for climate change. Lorio agreed that there is extraordinary potential for ecotourism in Nicaragua, and the USAID Director affirmed that studies had shown that Nicaragua offered even more biodiversity than Costa Rica. Commenting on illegal logging activity, Lorio observed that corruption is rampant, and that illegal exporters of protected tree species come in all shapes and sizes. End Summary. ¶2. (U) On February 7, the Ambassador met with new Minister of the Environment and Natural Resources Amanda Lorio Arana to discuss potential collaboration on environmental programs. Accompanying him was the USAID Director and Econoff. MARENA Director General Maria Antonieta Rivas Leclair also participated. USAID Activities -------------- ¶3. (SBU) The Ambassador opened by explaining the breadth and depth of U.S. environmental projects and programs in Nicaragua. He noted that much of the U.S. effort is related to fulfilling trade capacity building obligations under CAFTA-DR. The following week, for example, the U.S. would participate in a regional conference in Guatemala for CAFTA countries to discuss priorities for the region. (Note: Nicaragua was the only country which did not send a delegate to that conference. Travel authorizations have been complicated by a Ministry of Finance order centralizing funding authority under the Presidency, in the Office of the Coordinator for Public Communication and Citizenship headed by First Lady Rosario Murillo.) ¶4. (U) The Ambassador and USAID Director told Lorio that in the fall of 2006, USAID completed a work plan with the Ministry of Environment and Natural Resources (MARENA) to support activities under the CAFTA-DR Environmental Cooperation Agreement. USAID will invest $2 million to strengthen the country's ability to implement and enforce environmental laws, better protect and manage biodiversity and conservation, and encourage private sector involvement. ¶5. (U) The Ambassador informed Lorio that USAID had recently initiated a new $3.6 million Global Development Alliance with the Rainforest Alliance to bring together private sector partners to strengthen the competitiveness and sustainability of agriculture, tourism, and forestry of small and medium-sized enterprises and community based activities. ¶6. (U) In addition, the Ambassador and the USAID Director informed Lorio that USAID will begin new natural resource management activity with the U.S. Forest Service to improve the effectiveness of protected areas and preserve biodiversity. Activities focus on watershed and associated protected areas. USAID will fund $2.2 million while the private sector will contribute about $750,000. MARENA's Focus -------------- ¶7. (SBU) Lorio told the Ambassador that she plans to instill a new focus at MARENA on watersheds and water resources. She said decisions have to be made about which sources of water should be used for drinking and which should be used for industrial purposes. In some cases, she said, wastewater and other effluents had thoroughly polluted lagoons, lakes, and rivers; in other cases, watersheds need to be replenished. In Nicaragua, she observed, reforestation has a large role to play in watershed management, as does understanding geothermal dynamics. The Ambassador suggested that earning carbon credits under the Kyoto Protocol could provide a useful stimulus for reforestation in Nicaragua. ¶8. (SBU) Lorio stressed that another part of her job will be to change attitudes toward littering and cleanliness. Driving through Managua, one can see people living in and around trash scattered along the streets and around the homes of practically all Managuans. Lorio speculated that she would be requesting donor support for the establishment of collection and recycling systems. ¶9. (SBU) In the medium- to long-term, Lorio believes that MARENA will have to develop the capability to evaluate the environmental impact of a new petroleum refinery, in reference to Venezuelan President Hugo Chavez' recent offer. Lorio noted that the experience of Honduras might be instructive in this regard. (Note: Exxon-Mobil owns and operates the one refinery in Nicaragua at this time.) ¶10. (SBU) Lorio retrieved a map of oil spills or leaks located around the country. She pointed to five major and ten minor spills under management by the Directorate of Environmental Control. (Note: We understand that most of these sites are gasoline stations with leaking tanks, and that the situation is not serious.) Lorio added that while MARENA had set up a hotline to report environmental crimes, the ministry needs to train ministry officials and lawyers how to apply environmental law. ¶11. (SBU) Finally, Lorio said that she sees another one of her responsibilities as preparing the population for climate change. Ecotourism -------------- ¶12. (U) The Ambassador commented that he served in Nicaragua twelve years ago and had always thought that the country was beautiful, but he now sees the extraordinary potential for ecotourism. Lorio agreed, standing up to show designated protected areas and volcanoes on a topographical map. She added that while most people believe that Costa Rica is home to more biodiversity, it is only because it is better documented. USAID Director agreed, affirming that studies had shown that Nicaragua offered even more diversity than Costa Rica, especially along what is known as the biological corridor. Forestry -------------- ¶13. (SBU) The Ambassador asked about issues surrounding forest management and the enforcement of logging laws, given that things had deteriorated so that the Bolanos government had to issue a ban on the export of raw timber (reftel). Lorio supported Bolanos' desire to do something; the government could not simply sit idly by while the forests died a slow death. The police, attorney general, and others need to better enforce the law. Corruption in the industry, she stated, has to be confronted. Illegal exporters of protected tree species come in all shapes and sizes. USAID Director pointed out that what Nicaragua needs is a system to certify that logging corresponds to approved management plans. Turtles and Lagoons -------------- ¶14. (U) Lorio lent two films to the Ambassador: "Turtles Also Cry" and "Broken Mirrors." She encouraged him to show them to Embassy staff. The first documents the plight of endangered species of turtles in Nicaragua. On the Atlantic coast, turtle meat is butchered and commonly sold in the marketplace. In addition, Nicaraguans harvest thousands of turtle eggs for food every year. Lorio explained that Nicaragua has four of the seven endangered species of turtles designated by the Convention on Illegal Trade of Endangered Species (CITES). The second film described the plight of Nicaraguan lagoons, originally created as the result of water runoff into volcanic craters. Years of neglect and improper drainage of waste water had destroyed one very popular lagoon near Managua. The films, funded by Danish development agency DANIDA, were locally produced and filmed. Potential for Collaboration -------------- ¶15. (U) The Ambassador told Lorio that the U.S. Mission is very open to suggestions for potential projects. USAID Director said that USAID would try to provide U.S. experience when it came to watershed management and reforestation. He added that USAID welcomes the opportunity to discuss country and regional projects. Biography: Amanda Lorio Arana -------------- ¶16. (SBU) Amanda Lorio Arana is a sociologist who worked for the Agricultural Development and Reform Ministry during the 1980s. She has since been certified by the Upledger Institute (United States) and the International Therapy Examination of Healthcare Practitioners. Before being named minister, she practiced reflexology at a medical office in Managua. The office specialized in the treatment of migraines, nervous and hormonal dysfunctions, depression, arthritic knees, lumbago, scoliosis, stress, post-operative recovery, and trauma. She has reportedly treated the first lady and Director of Public Communication and Citizenship Rosario Murillo, and it was through this connection that she was selected as minister. BRENNAN