Nicaragua shoots up its debt with China: new contract with Huawei for lithium batteries
Although the authorities have not revealed the exact cost of the contract or the financing conditions, this agreement adds to a series of operations with Chinese companies that have considerably increased the country's indebtedness
TL;DR
- Nicaragua signed a contract with Huawei to acquire and install four lithium batteries for energy storage.
- The batteries aim to mitigate frequent blackouts and respond to supply interruptions.
- The initial phase will store 30 megawatts for four hours, with plans to reach 85 megawatts.
- The batteries are expected to be operational by the end of 2026.
- Huawei was chosen for its experience and technological capacity.
- The contract's cost and financing conditions have not been revealed, raising concerns about rising debt to China.
- The agreement strengthens Nicaragua's economic ties with China but increases dependence on Chinese financing for infrastructure.