Five years after the big announcement made by President Ortega and the Chinese company HKND, of the famous project to build a large inter-oceanic canal in Nicaragua, there are only tales.
The mega-project promised at the time by the Ortega government was estimated at $50 billion and promised to be built in five years, from 2014 to 2019, and to start operations in early 2020.
The concessionaire HKND has announced that it has hired BMT Asia Pacific to develop the plans for the operations of the canal and deepwater ports, and refine the operation model for the integrated Canal-Port.
While there is growing uncertainty about the financial viability of the project , the concessionaire HKND seems to be trying to dispel those doubts announcing the hiring of a specialized maritime infrastructure consulting firm to design plans for the proposed canal's operation.
Its promoters claim that the resources to build it are there, with no more details, but the announcement of the postponement of the start of the mega work following the huge losses suffered by Wang Jing in the chinese stock market, has only increased the doubts.
Doubts about the feasibility of this project have been present since it was first announced, but they now appear to be increasing given the contradictions arising from the information that the project spokespersons themselves have been giving out.
Arguing that they are improving the design of the waterway, the Chinese company HKND has announced that works will begin in late 2016.
Although December 2015 had initially been stated as the starting date of the primary works on the canal, such as excavation, the Chinese company has now announced that it will postpone these works until the end of 2016.
Part of the project includes a plan to build deep-water ports at both ends of the canal, with wharves and transshipment ports which can accommodate vessels of up to 200,000 dwt.
The environmental and social impact study for the construction of the Grand Canal of Nicaragua, published on the website of the Chinese concessionaire HKND, describes in detail the characteristics of the project and the impact it will have on the physical and biological resources in the area as well as its effects on economic and employment levels.
With the approval of the environmental and social impact study the Grand Canal Commission has facilitated the beginning of the construction of the waterway.
The Grand Canal Commission has approved the study presented by the Chinese company HKND, concluding that the final impact of the proposed construction of the canal will be positive for the country in social, economic and environmental terms.
Wang Jing, the owner of the concession for the great work, may have lost 84% of his personal assets in recent stock market upheavals in China.
While there has never been complete certainty about the realization of the gigantic work which could radically change the development prospects of one of the poorest countries in the hemisphere, news of the serious economic losses suffered by its promoter Wang Jing, tip the balance of opinions on the Grand Canal to the negative side.
The company HKND has announced that it is changing the original design of the work so as not to affect sensitive ecological areas, and to meet the demands of the inhabitants of Thule.
In addition to relocating an entrance of the waterway in Brito, the company HKND is also considering making other changes to avoid affecting ecological areas and populations in the area, who have spoken out against the project.
HKND is seeking to dispel doubts about the financing of the Grand Canal, and has announced that it expects to start construction of the port of Brito and two free trade zones in 2016.
Six months after the announcement of the start of ancillary works such as construction of access roads to the excavation sites and other facilities, it is still unknown where the estimated $50 billion needed to build the Grand Canal of Nicaragua will come from.
The company HKND Group has submitted to the Commission of the Grand Interoceanic Canal of Nicaragua, a study of social and environmental impacts prepared by the international consulting firm ERM.
El19digital.com reports that:
"The company HKND Group delivered on Sunday night to the Grand Interoceanic Canal Commission of Nicaragua, a social and environmental impact study produced by the firm ERM.
TreviGroup will be visiting the country to meet with business leaders and government officials to evaluate business opportunities in the project of the Grand Canal and other construction areas.
TreviGroup construction company will meet with representatives of the Superior Council of Private Enterprise (COSEP); the Nicaraguan Chamber of Construction (CNC) and government officials in order to find out about and evaluate participating in the construction of the Grand Canal and other construction opportunities in the country.
The consortium formed by the Nicaraguan Llansa Ingenieros, NAP Ingenieros y Nicaragua Ingenieros S.A has been subcontracted by HKND for preliminary works.
Elnuevodiario.com.ni reports that "...The works which began on December 22 consist of the construction of five temporary access roads, improving two existing access roads near port Brito and the West Lock proposed for the Canal, the clearing of a strip of 50 meters along the center line of the proposed route for the Canal and auxiliary facilities. "
On December 22 the concessionaire of the Grand Canal in Nicaragua, HKND started preliminary works, including the construction of access roads to the excavation sites and other facilities.
Representatives from the Nicaraguan government and the president of the Chinese company HKND, Wang Jing, inaugurated the start of the project to build the canal, which will start, according to the concessionaire, with the ancillary works which are needed before the main work can be begin.
Although many still doubt that the mega project will actually be built, it's time to think and take action both to mitigate the adverse effects it may have on the Costa Rican economy and to take advantage of any business opportunities that may present.
EDITORIAL
The productive sectors in Costa Rica are starting to measure the positive and negative consequences of both the construction and future operation of the Grand Canal of Nicaragua.
Promerica Group has proposed to the concessionaire of the project HKND the opening up of bank branches along the Canal and the provision of other financial services during the execution of the work.
The Production Bank, Banpro, is looking to develop a service plan appropriate to the measures and requirements of HKND Group, which would include executive support, differentiated tariffs and especially the installation of branches along the Grand Canal.