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There have been several stories written, and lots of blog action about the recent riots in Puerto Cabezas on Nicaragua’s Atlantic coast. The question of the motive for the government to cancel the election is valid and suggests that Ortega and Sandinista allies would lose the elections if they went forward.

Postponing elections due to hurricane damage seems random and could be an excuse to hold on to power in the region. But for what reason? How valuable is the northern Atlantic coast to the Ortega administration? Considering the recent go-ahead for oil exploration penned by the administration and MKJ Xploration, Puerto Cabeza could literally be the future well-head of revenue for the entire country. And that, makes it very valuable indeed.