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20 years

Chinese company says it is ready to build $40 billion “Nicaragua Canal”

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June 11th, 2013 (InsideCostaRica.com) Chinese company, HK Nicaragua Development Investment Co. Limited (also known as the HKND Group) said yesterday that it was ready to proceed with the construction of the Nicaraguan canal, estimated to cost about $40 billion.  The firm said the project would be completed in ten years.

 

However, environmentalists and even some politicians in Nicaragua have questioned the impact on the environment and the company’s experience with large infrastructure projects.  Environmentalists are especially concerned because the canal will affect Lake Nicaragua.  With an area of 8,264 square kilometers, the lake is the largest in Central America.

 

The company responded by saying that it has “extensive experience in infrastructure development and construction management,” without giving further details.

 

HKND has the support of the government of Daniel Ortega, who last week sent two “emergency” bills to the National Assembly to allow the firm a 50-year concession on the project.

 

“Trends in world trade and shipping indicate that there is demand for a new canal.  Our intention is to build a world-class project, developed in accordance with international best practices,” the company said as part of a statement.

 

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  • georgechapogas

    it was reported in the UK Guardian that the concession was for 100 years. last week.

    • http://insidecostarica.com/ Timothy Williams

      It is 50 years with an option to renew for another 50.

      • georgechapogas

        ty. why did you cut off the portion of rio san carlos which is where the canal would begin on Costa Rican territory? the Guardian also reported that the chinese have an insider on the international cout to settle this dispute in favor of Nicaragua

        • http://insidecostarica.com/ Timothy Williams

          Cover image only. As far as I’m aware, the route of the canal has not been *officially* announced, so the image isn’t meant to indicate the route. The Chinese ‘insider’ seemed a bit too speculative to me so we didn’t mention it.

          • georgechapogas

            i sent the UK Guardian out last week on my insiders subscriber private list. they mentioned it prominently with qualification because it is the inside scrum among officials that matter, including ticos. that many officials of all stripes are commenting on the court make up makes it news would you not think that as well?

          • http://insidecostarica.com/ Timothy Williams

            Once we know more and are confident in it, you can be sure we’ll run a follow up.

          • georgechapogas

            “Two former Colombian officials recently accused China of influencing the international court of justice to secure the territorial waters that Nicaragua needs for the project.
            In an op-ed piece for the magazine Semana,
            Noemí Sanín, a former Colombian foreign secretary, and Miguel Ceballos,
            a former vice-minister of justice, said a Chinese judge had settled in
            Nicaragua’s favour on a 13-year-old dispute over 75,000 square
            kilometres of sea.”
            that is not news worthy? u need my list:))

  • Patrick Smyth

    This will be an environmental disaster. Beyond epic.

  • toolman78

    This is something that has long been in the works. The Chinese are paying Panama a fortune to get their ships to the east coast. It only makes sense that they would fund this. Panama stands to lose a mountain of money if this canal gets built, So I expect they are going to throw as much sand in the gears as possible. The canal will probably be the best thing that could have happened to Nicaragua. It will give their economy a huge boost. It’ll be interesting to see what happens when the Nicas stop coming here to pick coffee, harvest sugar cane, etc..

    • Ken Morris

      Yes, this is huge, and the consequences don’t seem to be registering on Ticos. These consequences aren’t necessarily bad, but 20 years from now it’s entirely possible that Nicaragua will be the economic powerhouse and Costa Rica the poor neighbor. Costa Rica blew the chance to make this kind of deal by its adamant refusal to even discuss joint development of the Rio San Juan. Also, note that the canal project includes an oil pipeline. This is what Chávez long wanted for Venezuela, and its inclusion just augmented the power of Chávez’s leftist successor even as it increased Ortega’s power. The political economy of the region has just changed dramatically, yet the Ticos and others are greeting it with a yawn.

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