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Honduras seeks Chinese investment to bridge Atlantic and Pacific coasts with ambitious $20 billion rail project

honduras and china free trade

Posted: Saturday, July 8, 2023. 7:53 am CST.

By Breaking Belize News Staff: The Honduran government made an announcement on Friday appealing to Chinese investors to contribute to a $20 billion rail project aimed at connecting the Atlantic and Pacific coasts of the country, according to the South China Morning Post. This is part of a broader two-nation trade and investment initiative.

In addition to this ambitious rail venture, Honduras also brought forth proposals for the construction of dams and energy generation infrastructure. Honduran economic development minister, Fredis Cerrato, shared these prospects with the Chinese officials.

“We presented [Chinese officials] with the projects that Honduras is interested in getting financed, that are vital for the development of our country,” Cerrato told reporters, as reported by the South China Morning Post. “We’re talking about building dams, the construction of a transoceanic train that also has to do with our electric generation system.”

Cerrato stated that the Chinese officials, representing the world’s second-largest economy, have expressed interest in these infrastructure projects, which are to be financed through a mix of public and private funds.

The minister further noted that the proposed transoceanic railway could be operational within approximately 15 years, contributing to a significant boost in the nation’s infrastructure and economic progress.

This development comes after Honduras established diplomatic relations with China in March, cutting its long-standing ties with Taiwan in favor of Mainland China’s economic influence. This shift represents a strategic move by Honduras to harness China’s vast economic power and invest in transformative projects that could change the face of the Central American nation’s economy and infrastructure.

As Cerrato stated, the projects being presented to Chinese investors are not only large-scale but are also considered crucial for the development of Honduras. With China’s involvement, Honduras hopes to bring these plans to fruition, shaping a more prosperous future for the country.

The full extent of China’s investment in these projects, however, is yet to be determined. As Honduras continues to build upon its relationship with China, the world watches to see how this partnership will impact the Central American nation and its future.


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