The Nicaragua Canal (Spanish: Canal de Nicaragua) (also referred to as the Nicaragua Grand Canal, or the Nicaragua Inter-oceanic Grand Canal) is a shipping route under construction through Nicaragua to connect the Caribbean Sea (and therefore the Atlantic Ocean) with the Pacific Ocean. Construction of such a shipping route—using the San Juan River as an access route to Lake Nicaragua—was first proposed in the early colonial era.
2. 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 development
2. Growth and vitality of a civilization
3. Irrigation
4. Power generation
5. Tourism
6. Transportation
3. 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)
5. 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
9. 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.
10. 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;
11. 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.
12. 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
nicaragua
china
others
13. 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
14. PROJECTIONS
Transit time is about 30 hours.
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2000
4000
6000
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12000
14000
2020 2030 2050 panama
no of transits projected
no of transits…
15. 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,
16. 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.