Thu, Jun 13, 2013 - Page 7 News List

Nicaraguan lawmakers fast-track canal proposal

MYSTERY:Many questions have been asked about the Chinese HK Nicaragua Canal Development Investment Co deal, but so far there are few answers

AP, MANAGUA

Taiwan’s diplomatic ally Nicaragua is plowing ahead with a plan to dig a Chinese-funded rival to the Panama Canal across the midriff of the country, fast-tracking a proposal through the ruling party-controlled congress despite a lack of details about the US$40 billion project.

A China-based consortium says it will finance the project and turn over control of the infrastructure to Nicaragua in exchange for a majority of the earnings, which it would share with the Nicaraguan government.

Proponents have said the project could capture 4.5 percent of world maritime freight traffic and double the per-capita GDP of Nicaragua, one of the poorest countries in Latin America.

The canal has won the enthusiastic backing of Nicaraguan President Daniel Ortega, whose Sandinista Front controls the national legislature with 63 out of 92 lawmakers.

Many outside observers and Ortega opponents point out that nearly every key detail of the project remains a mystery, from the sources of its funding to Nicaragua’s share of the profits to the route it would take between the Caribbean and the Pacific.

Many have been asking whether Central America needs two canals, even in an age of growing world trade.

The Nicaraguan congress’ infrastructure committee voted unanimously on Monday night in favor of the project, with four opposition lawmakers on the 12-member body abstaining.

Committee president Jenny Martinez said the bill was immediately sent to the National Assembly, which is expected to approve it today.

Feasibility studies have indicated six potential routes across Nicaragua, many connecting with Lake Nicaragua in the western half of the country, but the legislation approved on Monday does not specify which one would actually be dug.

“Since there is no defined path, we can’t measure the degree of seriousness of this project,” opposition lawmaker Javier Vallejos said. “This is like putting the cart before the horse.”

Ortega also has not presented an economic feasibility study or an environmental impact study for the project.

He said last month that it would start in Bluefields Bay in the southern Caribbean coast, go through the center of the country and into Lake Nicaragua and stop at the southern Pacific coast.

The project would include digging about 200km of waterway, and proponents say it could create 40,000 construction jobs over the 11 years estimated for completion.

The government plans to grant the Chinese HK Nicaragua Canal Development Investment Co a concession for an initial 50 years, with the possibility of extending it another 50.

Jaime Incer, an environmentalist and adviser to the presidency on environmental issues, said authorities should be defining a specific route for the canal before approving a concession.

“There are at least six proposed routes and five of them include Lake Nicaragua, but there is nothing definite, that’s all part of the unknown,” he said.

Nicaraguan Deputy Foreign Minister Manuel Coronel, who is chairman of the country’s Grand Canal Authority, on Monday said that he had no doubt the Chinese company would carry out the project.

The Hong Kong-registered company has said that it is willing to fully study the technological, economic, environmental and social impact of the project.

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