NICARAGUAN CANAL AND DEVELOPMENT PROJECT

WHAT IS CANAL?? An artificial waterway constructed to allow

the passage of boats or ships inland or to convey water for irrigation.

IMPORTANCE-1. Importance to commerce and the

development2. Growth and vitality of a civilization3. Irrigation4. Power generation5. Tourism6. Transportation

INTRODUCTION The major infrastructure development project

in Nicaragua, the largest country in the Central American isthmus, bordering Honduras to the north and Costa Rica to the south

Connects the  Atlantic Ocean with the Pacific Ocean through the lake Nicaragua thus dividing the country in 2 parts.

Work started officially on December 22, 2014 and is scheduled to be completed by 2020  

One of the largest civil engg. works projects ever undertaken

Undertaken by the  Hong Kong Nicaragua Canal Development Investment Company (HKND Group)

INTRODUCTION

LETS TALK NUMBERS NOW

520 meters wide 173 miles long (275.5 km) Cost- US$40bn ( =4X GDP) Target of doubling the no of jobs in the country Economic growth expected to rise from 4.5% to 14.6% US$2bn revenue to the govt

DIMENSIONS

CANAL SEGMENTATION LANDSCAPECanal is divided into 5 sections as shown in the figure below

PROPOSED CANAL ROUTE

TIMELINE

The pre-construction phase - getting permits, acquiring land and machinery and finalizing designs and plans.

The early construction phase (Dec 2014 to Sep 2015) - it secures access to construction sites, provides the critical infrastructure and mobilizes the workforce.

The construction phase (Sep 2015 to March 2020)- time to dig the canal and build the locks plus their infrastructure.

The commissioning phase (April 2020 to June 2020)-` testing of the lock operations and training of lock and tug boat operators.

PROJECT FACILITIES

The canal; Two locks and associated

impoundments upstream; Dredge disposal areas and excavated

material placement areas; A dike; A stand-alone dam Ports at the canal’s Pacific and

Caribbean entrances;

PROJECT FACILITIES

Associated Project Facilities, including transport improvements,

Power generating and transmission facilities to deliver the power required to operate the canal;

Two cement plants and associated aggregate quarries;

A free trade zone including tourist HOTELS, 

An international airport at Rivas is also planned to be built.

WORKFORCE

50,000 people will be employed during the 5-year construction,

1,400 - administrative positions and the others are in the field.

The estimate for the workforce in 2020 when the project is completed is 3,700 people, and 12,700 in 2050 when traffic has increased.

50%

25%

25%

workers

nicaraguachinaothers

FINANCING The estimated costs are US$40bn.  Private money provided by Wang Jing at the

start-up, Financial support is expected

from INVESTORS XCMG, a state-owned Chinese construction

company will provide machinery and take 1.5-3% of HKND shares in return.

As of the end of 2014 no major INVESTORS have been named.

There has been speculation that the Chinese government provides financial backing for the project, but China as well as Wang Jing have denied this.

PROJECTIONS

Transit time is about 30 hours.

2020 2030 2050 panama0

2000

4000

6000

8000

10000

12000

14000

3576 4138 5097

12855

no of transits projected no of transits proj...

RISKS AND OPPOSITION The project has financial, political and

engineering risks, Stratfor , an analyst agency, believes the

target to be an “unrealistic goal”. A coast-to-coast railway line may be built by

China in Honduras and could affect utilization of the canal.

Impact of the project on Lake Nicaragua, the largest source of freshwater in Nicaragua.

An oil spill would have serious and lasting consequences,

The impact of dredging bringing up toxic sediments,

RISKS AND OPPOSITION

The disruption of migration patterns of animal species,

The potential to introduce invasive species to the Lake,

The estimates of the number of people who will be displaced range from 29,000 to more than 100,000,

The apparent lack of experience of Wang Jing and his HKND Group in large-scale engineering has been cited as a risk.

RISKS AND OPPOSITIONNicaragua has witnessed protests against the construction which had even led to the casualties.

SOURCES AND BIBLIOGRAPHY

http://en.wikipedia.org/ https://www.youtube.com/watch?v=K1y

JzBvcAoo

http://www.cnbc.com/id/102451065 http://hknd-group.com/upload/pdf/2015

0105/Nicaragua_Canal_Project_Description_EN.pdf

THANK YOUDHRUV KUMAR

A3CA-1012CEB170

GG9461