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    World

    Honduras pursues Chinese investors for $20bn transoceanic rail project

    Honduras pursues Chinese investors for $20bn transoceanic rail project

    Honduras has expressed its intention to seek Chinese investors to support the construction of a transoceanic rail line connecting its Atlantic and Pacific coasts. The ambitious project is estimated to cost around $20bn and forms part of a broader binational trade and investment initiative.

    Photo: Honduran foreign minister Eduardo Reina and economic development minister Fredis Cerrato in Tegucigalpa, Honduras
    Source: AFP

    Fredis Cerrato, the Minister of Economic Development for Honduras, revealed that discussions between Honduran and Chinese officials took place on July 7. The Honduran government presented its list of infrastructure projects to Chinese officials, including dams and energy generation initiatives.

    Cerrato emphasized the importance of these projects for the country's development and further explained that the proposed transoceanic train line is part of the country's strategy to enhance its electric generation system.

    "We presented [Chinese officials] with the projects that Honduras is interested in getting financed, that are vital for the development of our country. We’re talking about building dams, the construction of a transoceanic train that also has to do with our electric generation system," Cerrato elaborated.

    Highlighting the interest shown by Chinese officials, Cerrato noted that the projects could be funded through a combination of public and private investments. This approach aligns with China's engagement in infrastructure development worldwide, as it often leverages both state and private capital for large-scale projects.

    Although the timeline for completion remains uncertain, Cerrato estimated that the transoceanic train line could be operational within approximately 15 years. Such a rail network would significantly improve connectivity and trade opportunities for Honduras, facilitating the movement of goods and people across the country's coasts.

    The decision by Honduras to establish diplomatic relations with China occurred in March, marking a shift from its previous association with Taiwan. By embracing ties with mainland China, Honduras has gained access to a powerful economic partner capable of supporting its development aspirations.

    08.07.2023, 21:56   Comments (0)   1333
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