Except of the electricity sector, private participation in infrastructure has been rare in Nicaragua. The institutional framework is largely underdeveloped and the EIU’s 2014 Infrascope on the region categorized Nicaragua’s PPP activity as nascent, placing it within the bottom three countries in Latin America regarding to PPP readiness.

Nicaragua has no PPP management body and, despite encouragement from the private sector to develop a comprehensive framework, there have been delays in passing and implementing a formal PPP law. Nonetheless, recent constitutional reforms include an article codifying the government’s responsibility to develop a PPP framework and promote projects, and the legislature is reportedly considering a bill written by the private sector. Following an energy crisis in 2006, the energy sector has been the most open to private participation, mostly via Build-Operate-Transfer contracts for renewable-energy generation facilities.

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