By Ralph Jennings

TAIPEI, July 3 (Reuters) - Weeks after Costa Rica switched diplomatic recognition from Taiwan to political rival China, legislators from the neighbouring Central American nation of Nicaragua said they wanted a new package of aid from Taiwan.

Foreign aid is sensitive to Taiwan, which says it does not practice chequebook diplomacy but desperately wants to shore up its dwindling list of 24 diplomatic allies as fast-growing China, now claiming about 170 overseas partners, takes them away.

Beijing sees self-ruled Taiwan as part of its territory, rather than a country, and seeks to suppress its diplomacy.

Nicaraguan lawmakers allied with the country's ruling party said they wanted Taiwan to help Nicaragua boost electricity, cargo transport, postal services and telecommunications around Central America, said legislator Agustin Jarquin Anaya.

Nicaragua's ruling party particularly wants Taiwan expertise and advanced technology, Jarquin said.

"The (Nicaraguan) people have discovered what democracy is and they hope to improve their lives," Jarquin said on the sidelines of the 22nd Central American and Caribbean Basin Legislative Speakers Forum in Taipei.

"We expect Taiwan will help us make advances through their technology."

The two governments intend to join forces to build a $40 million hydroelectric plant in Nicaragua as early as next year.

Legislators also expect Taiwan to help Nicaragua's milk and cheese reach export quality and quantity, Jarquin said.

Nicaragua, with a population of 5.5 million, ranks among the poorest countries in the Americas, according to the World Bank. The country's per capita GDP (gross domestic product) is $817, compared with industrialised Taiwan's $16,442.

Taiwan has paid particular attention to Nicaragua since November, when voters elected Daniel Ortega as president.

Socialist-leaning Ortega broke ties with Taiwan in 1985 in favour of China. His successor restored ties with Taiwan in 1990.

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