Grand Canal: Opportunity and Threat for Costa Rica

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.

Wednesday, December 10, 2014

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.

While shadows hang over the project, such as the lack of credible commercial feasibility studies and the fact that there still has not been any funding sources presented, it should be clear that all these issues-and others- will end up as mere anecdotes if it is confirmed that behind the until recently little known Wang Jing, the Chinese businessman who is president of HKND, the concessionaire of the Grand Canal, is the will of the government of China. If this is the case - and at CentralAmericaData we believe it is - the Grand Canal will become a reality, regardless of "minor" details, such as its financial viability.

The Grand Canal of Nicaragua will run a few miles from the border of Costa Rica, and its impact on this country will be something to consider greatly.

Fiorella Bulgarelli, executive director of the Chamber of Exporters of Costa Rica (Cadexco), told Elfinancierocr.com that "... it is the right time for the country to turn its eyes to the internal situation and think about what works it should support so that the canal becomes an ally. "



More on this topic

Grand Canal of Nicaragua: Is There Funding?

December 2015

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.

Grand Canal of Nicaragua: Start of Works Postponed

November 2015

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.

Grand Canal: Construction of Ancillary Works

January 2015

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.

Reasoned Optimism Over Nicaragua's Grand Canal

November 2013

The Nicaraguan business delegation that visited China returned with objective grounds for believing in the realization of the project by the company HKND.

An article in Elnuevodiario.com.ni summarizes the opinion of Arturo Cruz, an analyst, diplomat and scholar, and member of the Nicaraguan delegation recently returned from China, where they met the businessman Wang Jing who revealed information on the relationship between him and his company HKND with the Chinese business political system.

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