Nicaragua canal Flashcards
Background of the Nicaragua Canal
-In 2013 the Nicaraguan government granted HKND a concession for the construction of the canal, as well as a series of sub-projects (e.g. an oil pipeline,
a highway, a railway system and international airports, a tourist complex…).
- No EIA was developed in advance so the Nicaraguan government have been 10 heavily criticised.
- HKND will build the 186 mile (200km) long canal and run it for for 116 years
• The canal will be between 27-29m deep, with a maximum bottom depth of
280m.
• Concerns over feasibility of the project as funding is not secured and the HKND have no prior experience.
Social advantages of the Nicaragua Canal
The government estimates that 400,000 people will be lifted out of general
poverty by 2018 due to the revenue the project will bring.
• Employment and opportunities for training and developing skills.
• Compensation offered for displaced peoples and resettlement area included
power, water, sanitation, education, policing and security facilities.
Disadvantages of social impacts on the Nicaragua
• Lake Nicaragua is an important source of fresh water for local people (e.g. living
in San Juan del Sur and Cardenas).
-Forced migration of groups to make way for development under Canal Law
840- little chance of appeal against compensation figures.
• Many communities in the Southern Atlantic Autonomous region are indigenous,
and the land belongs to them e.g. Rama.
• Resettlement of 7,200 families and 29,000 citizens living along the canal
including a Rama-village with 25 households will have to be resettled (the only
village where the native language is still spoken).
• Protests 11 injured in November when police used tear gas and rubber bullets to disband protesters.
• Resettlement of 7,200 families and 29,000 citizens living along the canal
including a Rama-village with 25 households will have to be resettled (the only
village where the native language is still spoken).
Economic advantages of the Nicaragua Canal
• Some universities offering courses related to the shipping and canal industry.
• Impacts on global trade- A shorter route to able to accommodate vessels with capacity up to 25,000 TEU which is twice the size of vessels allowed to pass
through the Panama Canal after expansion.
• Increased efficiency and operating costs lowered
Economic disadvantages of the Nicaragua Canal
Ecotourism opportunities on Lake Nicaragua lost e.g. on Ometepe Island
- Benefits HKND rather than Nicaragua - also through the subproject offered
- Estimated cost of $50 bn
Political advantages of the Nicaragua canal
- Increased revenue to allow for increased government spending (see economics
section) .
• Building the canal incurs no upfront costs- government will increase revenue
from the development of ports etc.
• Economic gains can be reinvested in increased social spending.
Political diadvantages of the Nicaragua canal
• Government heavily criticised for lack of transparency and little public
consultation.
• Government criticised for passing a new law which allows the land to be taken
away from indigenous groups.
• Political instability a risk if the project fails.
Environmental advantages of the Nicaragua canal
Provides and alternative option for employment, which may reduce pressure on Nicaraguas natural resources. Deforestation currently occurring at alarming
rate.
• Large scale reforestation either side of the canal.
• The project will assist the Government in moving the illegal residents currently
located in Indio Maiz ecological reserve.
Environmental disadvantages
Significant impact on MesoAmerica Biological Corridor, which incorporates the
nearby Bosawas Biosphere Reserve, the Indio Maíz Biological Reserve and the
Cerro Silvia Nature Reserve.
• Large amounts of biodiverse-rich rainforest and wetlands will be destroyed,
around 400,000 hectares- biodiversity hotspot.
• Shipping and the construction and operation of deepwater ports8 on the Atlantic
and Pacific coasts will affect the nesting and egg-laying habitats of several
endangered sea turtles and threaten coral reefs and mangroves.
• Important migratory route for birds.
