In some places, as much as 25 inches (64 cm) of rain fell on coastal areas. The flank of the Casita Volcano failed and turned into a lahar from excessive rain. The resulting mudslide ultimately covered an area 10 miles (16 km) long and 5 miles (8 km) wide.
Two million people in Nicaragua were directly affected by the hurricane. Across the country, Mitch's heavy rains damaged 17,600 houses and destroyed 23,900, displacing 368,300 of the population. 340 schools and 90 health centers were severely damaged or destroyed. Sewage systems and the electricity subsector were severely damaged, and, combined with property, damage totaled to $300 million (1998 USD, $351 million 2006 USD).
Transportation was greatly affected by the hurricane, as well. The rainfall left 70% of the roads unusable and destroyed or greatly damaged 71 bridges. Over 1,700 miles (2700 km) of highways or access roads needed replacement subsequent to the storm, especially in the northern part of the country and along portions of the Pan-American Highway. Total transportation damage amounted to $300 million (1998 USD, $351 million 2006 USD). Agricultural losses were significant, including the deaths of 50,000 animals, mostly bovines. Crops and fisheries were affected greatly as well, and, combined with agricultural losses, damage totaled to $185 million (1998 USD, $217 million 2006 USD).
The situation was further compounded by a total of 75,000 live land mines—left over from the Contra insurgency of the 1980s—that were calculated to have been uprooted and relocated by the floodwaters.
In all, Hurricane Mitch caused at least 3,800 fatalities in Nicaragua, of which more than 2,000 were killed in the towns of El Provenir and Rolando Rodriguez from the landslide at the Casitas volcano. The mudslide buried at least four villages completely in several feet of mud. Throughout the entire country, the hurricane left between 500,000 and 800,000 homeless. In all, damage in Nicaragua is estimated at around $1 billion (1998 USD, $1.17 billion 2006 USD).
reprint excerpts from (http://en.wikipedia.org/wiki/Hurricane_Mitch)