China now has the right to build a Nicaraguan canal to compete with Panama Canal

Panama

In a move that may turn out to be a lot more historically important than China’s reported lunar landing this weekend, the Sandinista government of Nicaragua is rapidly moving forward with a plan to allow a Beijing-based Chinese businessman to build a huge canal connecting Nicaragua’s Pacific and Atlantic coasts.

The plan gives telecommunications CEO Wang Jing a very generous set of concessions in exchange for a promise to build an inter-ocean canal three times the length of the Panama Canal, reports the Daily Mail. A bevy of tax-free side projects involved in the deal includes lucrative ports, an international airport, a cargo railway and an oil pipeline across the country.

- payin the bills -

The deal also lets Wang take private land for his projects—likely for a fraction of market value.

The price tag of the canal alone is estimated at between $40 and $50 billion.

Under the terms of the deal, Nicaragua receives $10 million a year for 10 years as well as a gradually larger portion of ownership of the canal over the course of a century. After 100 years, the country would own the canal. However, the payments and the ownership transfer only occur if the canal actually gets built.

The deal has many critics.

- paying the bills -

Environmentalists are absolutely up in arms, claiming that the tropical forest-filled, ruggedly gorgeous country will be wrecked by Chinese industry.

Several groups challenging the canal deal in Nicaragua’s Supreme Court expect the Sandinista-dominated Supreme Court to side with the government.

“It’s basically handing over the whole country — water, air and land — without any studies,” opposition congressman Luis Callejas said, according to the Mail.

Callejas was later blackballed from a 10-day trip to China by major Nicaraguan businessmen and politicians. Chinese diplomats refused to grant him a visa.

Shipping experts say that a canal in Nicaragua would need to produce $1 billion in annual revenue to break even, which would mean half of the Panama Canal’s cargo traffic would have to start using it.

Current Nicaraguan president Daniel Ortega – yes, that Daniel Ortega, the 1980s dyed-in-the-wool socialist — strongly supports the canal and Wang’s other projects, particularly ahead of the country’s 2016 presidential elections.

- paying the bills --

Last month, Ortega’s Sandinista party faction in government proposed a set of constitutional changes that would allow him to be president for life and also would write the canal project into the national constitution.

Ortega’s advisers predict that the new canal in Nicaragua could be completed in as little as five years and cause the country’s $10 billion GDP to double.

Another reason for the big push to start the canal now is that aid from socialist benefactor Venezuela is quickly drying up.

The people of Nicaragua across all social demographics are generally thrilled by the prospect of a new canal in their country and the prosperity they believe it will bring, notes the Mail.

Over the summer, the National Autonomous University of Nicaragua in the capital city of Managua announced that it will establish majors in port management and metallurgy. There will also be Chinese language courses on offer.

Source: The Daily Caller

 

 

Related Articles

Nicaragua still the country with the greatest mobility in Central America in times of pandemic

TODAY NICARAGUA - Eight months after the first case of Covid-19...

Nicaragua restores 95% electricity service

TODAY NICARAGUA - After the damages caused by Hurricane Iota a...

MOST READ

Rosario Murillo: La Heredera (The Heiress)

Rosarion Murillo, the "eternally loyal" to her husband and political partner, Daniel Ortega. In a profile by Confidencial in October 2016, before her election as...

Better Air Connectivity Between Nicaragua and the US

The private companies' association is in talks with United Airlines to promote the opening of a route that connects Nicaragua with the east coast...

Nicaragua Unveils Central America’s Largest Baseball Stadium

Nicaragua has unveiled its long-awaited baseball stadium in Managua, replacing the former baseball field built in 1948. The new structure will hold up to...

Bianca Jagger Gets Into The Nicaragua Act Again

(American Thinker)  Remember Bianca Jagger? You know, the disco queen and former rock-star's wife turned leftwing "human rights activist" who was last seen mourning...

What Are Some of Nicaragua’s Popular Food?

TODAY NICARAGUA - Nicaragua is an interesting place, with a tumultuous history and a relatively peaceful present. and even if many things can be...

Nicaragua Praised by the IMF

The IMF noted the positive evolution of all the country's economic indicators, and the drastic fall in poverty, with an increase of 33% in...

Poll Shows Declining Expectations on a Nicaraguan Canal

According to the results of the most recent survey conducted by Cid Gallup, the Nicaraguan interoceanic canal project, a concession given to the Chinese...

Let's Keep This Going!

To be updated with all the latest news and information about Nicaragua and Latin America.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.