Must Listen

Must Read

What Art Thinks

Pre-Millennialism

Today's Headlines

  • Sorry... Not Available
Man blowing a shofar

Administrative Area





Locally Contributed...

Audio

Video

Special Interest

Daily News
19219
“Nicaragua Waterway to Dwarf Panama Canal”
by The Guardian   
June 13th, 2013
reportint20120525033743437

Nicaragua’s parliament is due to vote on Thursday on one of the biggest infrastructure projects in Latin America’s history – a trans-oceanic canal that is to be built and run by a Chinese company.

If it goes ahead, the $40bn (£26bn) scheme, which is twice as expensive as Brazil’s Belo Monte dam and likely to be three times longer than the Panama canal, looks set to transform global shipping and jump start the economy of this Central American nation.

As well as the waterway, the draft agreement between Nicaragua and a Hong Kong registered firm — Nicaraguan Canal Development Investment Co Limited – includes provisions for two free trade zones, an airport and a “dry canal” freight railway.

“This will be the largest project in Latin America in 100 years,” Ronald Maclean, the executive fronting the operation in Managua told the Guardian. “If Nicaragua gets to do this, it is going to be a transformational project not only for Nicaragua but for the region.”

Given the government’s large majority, parliamentary approval is expected to be a formality, but critics warn the plan is being rushed through without adequate scrutiny of the environmental impact, business viability and public well-being.

A one-year viability study is now under way and the operators soon plan to tap international financial markets in New York, London and Tokyo for investment in a scheme that they say will be entirely privately funded. President Daniel Ortega is also said to be promoting the scheme in meetings with ambassadors from Brazil, Saudi Arabia and Canada.

Although hydro-engineering techniques have advanced considerably since the 48-mile (77 km) Panama canal was completed in 1914, the logistical challenge will be enormous. The new canal, which will pass through a much wider stretch of land, is likely to be more than 250km long. It will also be much wider to allow passage by the biggest container ships. The project will be operated by HKDN — a Hong-Kong based firm set up last year that has established a holding company in the Caiman Islands. It will pay $10m a year for 10 years to the Nicaraguan government.

go back button