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News :: Labor
CAO attests to successful dialogue process between Nicaragua Sugar and ASOCHIVIDA
18 Oct 2012
The Office of the Compliance Adviser/Ombudsman of the World Bank (CAO) highlighted the main achievements of the successful dialogue process between Nicaragua Sugar Estates Limited, owner of the San Antonio Sugar Mill, and the Chichigalpa Association for Life (ASOCHIVIDA) in a document whereby the parties agreed to end the mediation of the CAO as of June 30 of this year.
The agreement signed by Nicaragua Sugar and ASOCHIVIDA highlighted the efficiency of the results of this dialogue initiated with the mediation of the CAO in March 2008, and the signing of the agreement was witnessed by Mrs. Meg Taylor, Vice-President and CAO of the World Bank Group.

The document underlines the consensus of the parties in respect of the need to look for the causes of Chronic Kidney Disease (CKD) in the western region of Nicaragua, as well as their mutual agreement in selecting Boston University School of Public Health for conducting this study and their joint approval of research plans and results to date.

An important aspect highlighted by the agreement is the support given by Nicaragua Sugar since June 2009 to families affected by CKD, totaling more than four million dollars, which the company has provided as part of its social responsibility policies and without any legal obligation.

In food aid alone, Nicaragua Sugar has allocated $2.8 million to benefit 2,211 families and has set up a microcredit fund with a start-up capital of $165,000 dollars for granting loans to the members of ASOCHIVIDA under favorable conditions.

One of the most interesting initiatives is the purchase of a poultry farm by Nicaragua Sugar for $235,000, with the objective of transfering all profits to ASOCHIVIDA, as well as the property title and management of the facility within four years.

Nicaragua Sugar will also develop an entrepreneurship project with the German Development Bank (GDB), which will be led by Nitlapan, an agency specializing in rural and urban development methodologies, which will assist ASOCHIVIDA members in designing business initiatives.

Another major project is the construction of 100 houses with a total cost of $550,000, together with the Urban and Rural Housing Institute (INVUR), the Inter-American Bank of development (IADB), the Colmena Foundation, the Municipal Government of Chichigalpa, the American-Nicaraguan Foundation (ANF) and Nicaragua Sugar.

The support provided by this Grupo Pellas company to improve health services in the municipality of Chinandega, allocating approximately $210,000 each year, has had a high impact. In addition, Nicaragua Sugar proposed a project amounting to $320,000 to the Nicaragua Ministry of Health (MINSA), together with the German Development Bank (KfW), to build a new health clinic and improve care for CKD patients, which MINSA accepted and authorized Nicaragua Sugar to directly carry out the design and construction work. With a contribution from Nicaragua Sugar, the municipal government of Chichigalpa purchased the necessary land where MINSA is also planning to build a primary hospital.

View full document: http://www.cao-ombudsman.org/cases/document-links/documents/NSEL_ASOCHIV

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