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Flashcards in Nicaragua canal Deck (9)
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1
Q

Background of the Nicaragua Canal

A

-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.

2
Q

Social advantages of the Nicaragua Canal

A

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.

3
Q

Disadvantages of social impacts on the Nicaragua

A

• 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).

4
Q

Economic advantages of the Nicaragua Canal

A

• 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

5
Q

Economic disadvantages of the Nicaragua Canal

A

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
6
Q

Political advantages of the Nicaragua canal

A
  • 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.

7
Q

Political diadvantages of the Nicaragua canal

A

• 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.

8
Q

Environmental advantages of the Nicaragua canal

A

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.

9
Q

Environmental disadvantages

A

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.