By Roberto Orozco B. | 2025-03-28

SAN JOSE, Costa Rica -- The construction of Nicaragua's El Hato photovoltaic plant, which began on March 24, is one of three solar projects led by China that will further strengthen the ruling Ortega-Murillo family's grip on the country's energy sector.

Daniel Ortega and Rosario Murillo are the married co-presidents of the country's regime.

These deals are purely commercial ventures, with no government oversight, directly benefiting the presidential family while falsely presented as Chinese cooperation, say Nicaraguan analysts.

In 2024, the Ortega-Murillo regime signed $175 million in financing and construction contracts with the state-owned China Communications Construction Company (CCCC) for the Enesolar AP-AS 1, El Hato Solar Project and Enesolar 3 plants in San Isidro, Ciudad Dario and Masaya.

Managua expects these plants to generate more than 300MW, with almost half allocated to Nicaragua's Water and Sewer Company (ENACAL) for its potable water pumping system, according to official reports.

Lack of transparency

Nicaragua's debt from Chinese cooperation projects has reached $919.72 million, according to the Central Bank.

The Ortega-Murillo-controlled companies, rather than the Nicaraguan government, have signed all contracts with relevant Chinese companies, observers note.

"This means the so-called cooperation is actually a private investment, creating public debt that Nicaraguans will have to repay. There is no Chinese state assistance benefiting the population," an analyst told Entorno on condition of anonymity due to fear of reprisals.

A lack of transparency defines these projects, the source added.

"The contracts remain undisclosed; we don't know their terms. The little information available comes from government-controlled media," he said.

Energy monopoly

Even though Managua hides details, three observers point to two key patterns in how the Ortega-Murillo regime turns falsely presented foreign cooperation into private business ventures.

The first is the precedent set by deals with the Venezuelan oil industry. Nicaragua received $4.5 billion in oil derivatives from the state-owned Venezuelan oil company, Petroleos de Venezuela (PDVSA), but the Ortega-Murillo regime redirected it into a private fuel business through Alba de Nicaragua (Albanisa), which the United States sanctioned in 2019 as part of broader measures against PDVSA.

The second is Ortega's personal stranglehold on electricity production and distribution. Using Venezuelan funds, the Managua regime created Alba Generacion -- Albanisa's energy arm, allowing Ortega and his family to seize almost 50% of the country's electricity generation.

The three Chinese-backed photovoltaic plants described above, whose contract details remain undisclosed, will further entrench this monopoly, analysts suspect.

While ENACAL will require some power to pump water, Ortega controls distribution through his companies, ensuring that, whether in production or distribution, state-owned entities will pay private firms under his influence.

One such firm is Disnorte-Dissur, the national electricity distributor.

Ortega acquired that company through front men, including businessman Tirso Celedon Lacayo, who in 2024 used a shell company to purchase Disnorte-Dissur with $140 million in Venezuelan aid money, independent Nicaraguan media Confidencial reported last June.

"In Nicaragua, nothing in electricity moves without Ortega's approval," an electrical engineer with more than 30 years of experience in the country's private sector told Entorno.

"His regime controls a major share of generation, has a total grip on distribution and oversees the regulatory agency ENATREL, which dictates industry policy," he added.

ENATREL is an acronym for the National Electric Transmission Company.

Economist and political scientist Enrique Saenz echoed this point on March 22, stating in different media outlets that Ortega's inner circle has "captured all institutions to accumulate fraudulent wealth through control of the judiciary and armed forces."

The chain of influence

Observers of Nicaragua point to two key officials who have played a role in strengthening the Ortega family's business empire through deals with CCCC.

The first is Laureano Ortega Murillo, son of the co-presidents.

Appointed by his parents to advise on investment and international cooperation, he serves as the primary link between Chinese and Russian investors.

"His role is to negotiate business deals and secure his family's share of the profits," a source told Entorno.

The second is Salvador Mansell, minister of energy and mines and director of ENATREL.

Mansell has granted extensive concessions to Chinese mining firms in the country's Caribbean region, including Zhong Fu Development SA, Nicaragua Xinxin Linze Minera Group SA and Thomas Metal SA.

By January, these companies had secured 45.9% of all mining concessions awarded by his ministry.

The US Treasury Department sanctioned Mansell in November 2012 -- along with eight other Ortega officials -- for corruption and electoral fraud.