Enterprise intends to raise 40 billion in mining Nicaraguan Grand Canal cited attention

“Chinese companies want to dig in the Central American countries, Nicaragua second canal linking the Atlantic and Pacific,” the explosive news recently by Chinese and foreign media attention. 25, 2009, Hong Kong – Nicaragua Canal Development Investment Co., Ltd. (referred to HKND Group), chairman and president Wang Jing in Beijing held a press conference to introduce the company signed with the Government of Nicaragua to carry out development projects in Nicaragua Canal exclusive commercial agreement.
2012, HKND Group began with the Government of Nicaragua on the Grand Canal project to make contact. June 14, 2013 the two sides signed an agreement, HKND Group owns the planning, design, construction, operation and management of the Canal of Nicaragua and other potential projects (including port, free trade, international airports and other infrastructure development projects) for exclusive rights. Nicaragua will reach 286 km length of the Grand Canal, 40-ton super-ships can pass.
“World Trade development today, the human need for such a canal,” Wang Jing said. His experience in Nicaragua is the deepest desire of the Government and people of the urgent desire to escape poverty. Nicaragua Canal is the country’s century-old dream.
HKND Group expects Canal total investment will reach 40 billion U.S. dollars. Under the agreement, funding the construction side with canals operating license will be valid for 50 years and has the right to renew for 50 years. The Government of Nicaragua to the Grand Canal project to provide tax, import, export and land use aspects of convenience and benefits, but there is no capital investment. All investments will be HKND Group’s financing solution. Wang Jing said that the future will be phased to disclose financial news.
Chinese Academy of Social Sciences, deputy director of the Latin American Institute Wu Bai B of the “Global Times” said that Central America to achieve sustainable growth, but also on major geopolitical advantage. Nicaragua as a small country, the economic structure is very simple, only emulate Panama mode. For the purpose of connecting two oceans to play more than the idea of ​​the geographic advantage that one. South American countries, Colombia is planning to build a railway linking the two oceans. So from a development sense, both the Pacific and Atlantic oceans rise of trade with the East Asian region continues to expand, countries comparative advantage to catch East Asian Express.
The world has two of the most strategic canal. Suez Canal length of 190 kilometers, started in 1859, completed in 1869, built by the Egyptian. Panama Canal length 82 km, 1883 France began construction, after the French construction company into bankruptcy. 1903 United States and Panama signed an agreement to restore the canal project, the Panama Canal officially opened to traffic in 1920.
Nicaragua canal length is three times the Panama Canal. And throughout the tropical jungles of Nicaragua, as well as volcanic eruptions risks. Canals is not easy. Local environmental organizations have expressed their opposition to this project. Wang Jing said that in six envisaged canal route, they choose the middle of a line of Nicaragua, Costa Rica and its neighbors to avoid the Nicaraguan border between the San Juan River, and also circumvented political risk. On the environment, they also make a solemn commitment.
Currently the project is only in the feasibility study stage. The company has organized a professional team, is expected to be completed around June next year feasibility study by the end of 2014 officially started construction in six years to win the Grand Canal across navigable. Wang Jing said that the group’s agreement with the Government of Nicaragua on the progress of the project schedule no mandatory convention. That is, if unable to start construction by the end of 2014, it does not matter. However, he said, “there is no possibility of default.”
Currently, Nicaragua did not establish diplomatic relations with China last year, Chinese Ministry of Commerce has also published over the risks of investing tips Nicaragua. Wu Bai B believes that China’s local social, legal, cultural and other knowledge can not be very accurate. The road is very long. History of exchanges between China and Latin American countries is still very short.
HKND Group is a private international infrastructure development company, chairman and president, 41-year-old Wang Jing holds 100% of shares in the group. His identity is known to Xinwei Telecom chairman. Nicaraguan President Daniel Ortega and his son is a good friend, but he said that this personal relationship has nothing to do with this project. He said he still has a mineral investment Southeast Asian countries, in sports, aerospace industry investment, business scope covers more than 30 countries.
But there are many voices of doubt. Wang Jing I HKND all walks of life and the background is poorly understood. Nicaraguan opposition parties requested more information on the company and its responsible person information. It was also said that even if trade is growing, Central America really need two canals. Reuters interview with a group of senior project finance experts agree that is currently not seen businesses are interested in this project. Public opinion also questioned the possibility of the project gain, while the Nicaraguan environmental organizations on the development of the local Grand Canal possible damage to the environment very strong reaction.
Wu Bai B that, from a development perspective should welcome this canal plan, but specific to the feasibility, economic benefits, geo-strategic, political and other issues, should be carefully interpreted. Special care should be noted that the Hong Kong company’s behavior is purely corporate behavior, does not mean that the Chinese government, and certainly not an act of state.