By Tim Rogers
Nica Times Staff | trogers@ticotimes.net

Venezuelan President Hugo Chávez assured President Daniel Ortega yesterday that his oil-rich nation would keep the Nicaraguan economy afloat in the event that the international lending community were to pull out of this country.

Ortega told Chávez that Nicaragua was forced to negotiate with the International Monetary Fund (IMF) because without international aid “Nicaragua would collapse.”

Chávez, who last year ousted the IMF from Venezuela, said he wouldn't let Nicaragua go down for the count.

“Nicaragua will not collapse, you can be sure of that,” Chávez said.

Chávez, who traveled to Nicaragua Tuesday night after attending President Alvaro Colom's inauguration in Guatemala, said that the Bolivarian Alternative for the Americas (ALBA) is the key to uniting Latin America and freeing countries from colonialism. ALBA is an alternative trade and development accord signed between Venezuela, Cuba, Nicaragua and Bolivia.

Under the auspicious of ALBA, Chávez reiterated his promise to help solve Nicaragua's energy crisis and turn the country into an oil exporter within five years.

Chávez said that his government is currently shipping to Nicaragua several new power generators, scheduled to arrive here next week and go on line by March, to provide another 60 megawatts of to the country's fragile energy grid. Later in the year, a “third phase” will go into effect whereby Venezuela will provide an additional 120 megawatts of fuel oil power plants, thereby providing the country with an energy surplus for the first time in years.

“By joining ALBA, you have joined our energy revolution,” Chávez said.

Plans are also moving forward to continue construction on Chávez's $4.5 million oil refinery, which will be capable of processing 150,000 barrels a day. By comparison, Nicaragua's current level of consumption is only 27,000 barrels a day, a situation that would allow the country to become an oil exporter once the refinery is completed.

Chávez noted that even if Nicaragua doubles its current level of consumption, it will still be able to export around 100,000 barrels a day to the tune of $3.6 billion in annual earnings for this impoverished country. With all that money, Chávez said, Nicaragua can afford to free itself from the grips of the IMF and other “colonial” structures.

“The objective of ALBA is independence,” Chávez said. “ Cuba and Venezuela are independent, and now Nicaragua is heading in that direction.”