Chinese company to get canal contract

The now official rumor is that a Chinese company will get the concession to build the canal across Nicaragua.

An AP article appeared in many newspapers including the Washington Post which offers more insight -- but not much. It sounds like the details will be presented to the legislature on Friday.

Legislative leader Rene Nunez said the company will use funds from investors around the world to build the $40 billion project.

The news is that it will not be built along the Rio San Juan which is a big loss for Costa Rica.

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Not so fast?

This is an interesting article discussing the legal rights that have already been issued to build a dry canal (rail road) from coast to coast in Nicaragua. These rights are also about to be given to a Chinese company who is going to build the wet canal. After reading the article, it sounds like the company faced the typical Nicaraguan 2 step and did not pay off the correct people in order to get the permits they needed. It also say China does not have a diplomatic relationship with Nicaragua. This came as a big surprise to me.

1st Capt. Ron

(Title by Miskito Alan)

Nicaragua has diplomatic relations with Taiwan

Not sure a country can recognize both the PRC and the other government on Taiwan that claims to represent the whole thing, too, unless it's the US which could do what it wanted.

The PRC seems to be fairly tolerant of Nicaragua's decision and enough things from the PRC do end up here. Taiwanese and Korean investors are significant players in the textile factories here, so Nicaragua doesn't want them to go away.

Rebecca Brown


The diplomatic relations game is, well, a game. Costa Rica, for example, has diplomatic relations with PRC but not Taiwan. The reality is that Nicaragua has benefited from its diplomatic relations with Taiwan and it appears that PRC understands the game.

FYI new it before the news

"a recently formed Chinese company to build and manage a megaproject combo that includes an inter-oceanic canal, an oil pipeline, a railroad, two deepwater ports, two airports, and a series of free-trade zones."

"“The Developer of Big Infrastructure Company" - This is rather a generic name, but considering the range of projects it is going to be responsible for I guess it fits. Apparently the parent company is HK Nicaragua Canal Development Investment Co. Ltd. I wonder if this is listed on the Hong Kong Stock Market? Not that I have the money to invest. I am sure most of the politicians in-the-know are invested.

It is interesting that the pipeline project is listed as well, especially since Obama was recently here. I wonder if Obama is invested as well?

1st Capt. Ron

(Title by Miskito Alan)

I think Nicaragua has been thinking about this canal

...for something like over 150 years. I don't expect the project will do anything good to the lake fauna and flora, but I think the benefits outweigh the drawbacks if it happens. The Chinese tend to do well with large engineering projects (see Great Wall, various canal projects in their own country).

Tongue sort of in cheek.

Rebecca Brown

The Chinese

The Chinese are good at the project it self but I wonder how well they will handle the ancillary parts of this project. Things such as the environment (as you mentioned) and relocation of population (I guess this might be the Nicaraguan Government). In China people are forced to move with little or no process. I understand they are relocated into apartment style buildings, but how would this work here in Nicaragua? Are we going to see another tent city in downtown Managua?

1st Capt. Ron

(Title by Miskito Alan)

I like this comment

“I do not understand what the rush is,” Callejas said. “It’s such a sensitive topic that it should be consulted with the population.”

I think he is right. we should think about this project for another 20 years (sarcasm).

1st Capt. Ron

(Title by Miskito Alan)

I wonder what Pellas knew?

A tax free zone and International Airport right on his doorstep at Brito.