For Immediate Release

MANAGUA, NICARAGUA (February 9, 2004) – On January 23, 2004, the U.S. Trade and Development Agency (USTDA) awarded a $359,428 grant to Empresa Nacional de Transmisión Eléctrica, S.A. (ENTRESA), a parastatal company responsible for electric transmission lines in El Salvador.  The grant will be used to fund the development of a comprehensive plan for designing and operating an optical transport network to provide a market alternative for the Nicaraguan telecommunications sector.  The Honorable Barbara Moore, U.S. Ambassador to Nicaragua, signed an agreement conferring the grant on behalf of the U.S. Government.  His Excellency Norman Caldera Cardenal, Minister of Foreign Relations for the Government of Nicaragua, signed on behalf of the grantee.

The USTDA grant awarded today is central to Nicaragua’s efforts to modernize and expand the reach of its telecommunications infrastructure.  It is expected that the implementation of this project would greatly increase the availability of telecommunications infrastructure and increase market access in Nicaragua, which would have a number of direct and indirect benefits for the Nicaraguan economy and population.

The technical assistance afforded through this grant will further advance ENTRESA’s goals of reducing costs, encouraging investment and building an ICT infrastructure sufficient to meet the demands of the growing Nicaraguan economy.  The USTDA grant is the first that the agency has awarded to ENTRESA and reflects the USTDA commitment to support trade capacity-building projects that expand a developing country’s ability to engage in international commerce.  Moreover, the grant was developed consistent with the objectives of the U.S.-Central America Free Trade Agreement (CAFTA), which is currently under review by the Governments of El Salvador, Guatemala, Honduras, Nicaragua and the United States.

The USTDA-funded technical assistance will assist ENTRESA in the design, development and evaluation of options for an efficient business model.  In addition, it will develop an investment-quality business plan for ENTRESA that addresses the market, network design and financial aspects of the fiber business for whichever commercial model is selected and licensed.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries.  The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment.  USTDA’s strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development.  In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

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