Nicaragua

Luxembourg's development cooperation in Nicaragua

The beginning of the development cooperation relationship between the Grand Duchy of Luxembourg and the Republic of Nicaragua dates back to the 1990s. Relations have developed ever since, and Nicaragua has become a partner country. In 2000, a general cooperation agreement was signed, defining the general framework for cooperation relations and in 2007 a Luxembourg cooperation programme office opened in Managua, achieving embassy status in February 2008. The non-resident Ambassador is based in Washington.

The first Indicative Cooperation Programme (ICP I 2003-2006), with a budget of 23 million euros, addressed the antipoverty strategy that the Nicaraguan government had put together in 2001 as part of the "heavily indebted poor countries" initiative run by the Bretton Woods institutions.

The ambition of the second ICP (ICP II 2007-2010), with a budget of 31.6 million euros, signed at the end of 2006, was to help reduce poverty and encourage Nicaragua's sustainable development. The intervention sectors were tourism, health, professional training as well as water and sanitation.

The third ICP (ICP III 2011-2014), signed in April 2011, was allocated a budget of 35 million euros. It maintained the previous ICP's focus on tourism, health and professional training while progressively withdrawing from the water and sanitation sector.

The extension of the ICP III (2015-2017), with a budget envelope of 21 million euros, signed on 19 February 2015, was provided to ensure ongoing support to the tourism, health and professional training sectors in order to consolidate the gains made by Luxembourg's development cooperation programme in Nicaragua prior to the launch of the joint programming initiative by European donors in 2018.

Under the terms of this extension the initial ICP III programmes were wound up, with new programmes being developed for the period 2015 to 2017. In this context the private sector was also encouraged to participate, with a new partnership with the Union of Nicaragua for Corporate Social Responsibility.

At the multilateral level, fresh support for the health sector has been developed with the Pan American Health Organization (PAHO), based on maternal and infantile health.

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