By Roberto Orozco B. | 2025-06-03

SAN JOSÉ, Costa Rica -- Daniel Ortega's regime is negotiating new loan agreements with Chinese companies worth over $213 million. If finalized, Nicaragua's debt to China would soar to $1.19 billion, an alarming figure for one of Latin America's poorest countries.

On May 29, Nicaragua's official government publication La Gaceta revealed presidential orders authorizing a Ministry of Finance official to sign contracts with Zhengzhou Coal Mining Machinery Group (ZMJ) and China Iconic Technology Company Limited.

The deal with ZMJ totals $84.9 million, to be delivered in two tranches. The funds will supply goods and services for the Digital Connectivity Project, led by state-run telecom agency TELCOR in partnership with controversial Chinese tech giant Huawei.

The project aims to bridge Nicaragua's digital divide by installing 200 base stations to improve mobile, internet and landline coverage, state media, including El 19 Digital in late May, claim.

TELCOR is headed by Nahima Díaz, daughter of National Police Chief Francisco Díaz and wife of Maurice Ortega Murillo, son of the presidential couple, Daniel Ortega and Rosario Murillo. A recent constitutional reform elevated Rosario Murillo to co-president, consolidating the family's grip on power.

In mid-April, TELCOR's designated official discussed business with Huawei's Latin America president, Xhou Danjin, during a visit to the company's Shenzhen campus in China. The seven-year project targets rural and Caribbean regions, where internet access remains minimal.

However, computer scientists at the National Engineering University (UNI) warn the project could serve more than just connectivity goals.

"The Ortega regime wants to control the internet and is advancing step by step," "Martín," a UNI computer engineer who requested anonymity for fear of retaliation, told Entorno. "Huawei has been accused of spying in other countries, and in Ortega's hands, this partnership could tighten control over Nicaraguans' communications."

In 2024, the regime passed the Convergent General Telecommunications Law, laying the groundwork for increased public-private investment in digital infrastructure. Authorities have already deployed 2,800km of fiber-optic cable, erected 65 towers and equipped 14 health centers with digital tech along the Caribbean coast.

A 2nd Chinese loan, more control

The second loan, with China Iconic Technology Company Limited, amounts to $128.1 million. The funds will finance feasibility and engineering studies for expanding and modernizing the Julia Herrera de Pomares Logistics Center, 10km from Corinto, the country's main port.

Nicaragua's government claims the center will streamline cargo inspection, security and storage. The 102,000-square-meter facility already houses a fuel station and heavy truck parking.

But concerns over the Chinese partners loom large.

ZMJ, one of the contractors, has faced scrutiny over questionable investments. In late 2023, the firm disclosed it had invested more than $41 million in trust products tied to Huisheng PE, now under investigation for fraud.

Chinese authorities detained key Huisheng executives but recovered less than 10% of ZMJ's funds. The scandal triggered a stock slump and raised questions about ZMJ's financial governance.

As Ortega's regime deepens its ties with China, critics warn that the loans and partnerships not only entrench authoritarian control but expose the nation to financial and technological dependencies that could prove devastating.