Honduras’ projects gain fresh momentum

With inked agreements, new ties seen as good start for achieving objectives

Honduras is gearing up infrastructure building a week after an official trip by its President Iris Xiomara Castro Sarmiento to China with a number of inked agreements.

“With Honduras’ new relationship with China, we are obviously ready to collaborate with companies from China for investment opportunities here in Honduras, as well as trade,” Antonio Young, executive vice-president at the Trade and Industries China Honduras-Central American Chamber, said.

Honduras state-owned National Ports Company, or ENP, and China Harbour Engineering Company are working together on the construction of two bridges, the refurbishment of the San Lorenzo port and the expansion of a highway.

“It is a good start for a joint international cooperation between Honduras and China to reach achievable objectives, for example, the improvement of road infrastructure, which would be the bridges and the dredging of ports for a much more open commercial infrastructure,” Alexander Galeas, a podcast producer in Honduras and expert on international relations, said.

The first bridge covered by the infrastructure agreement will span the Alvarado lagoon at the Puerto Cortes Port exit on the Caribbean coast, while the second bridge will be built at the port’s entrance.

China Harbour Engineering Company will also widen a 50-kilometer stretch of highway from Goascoran to San Lorenzo, on the southern Pacific Coast, investing $82 million to enhance freight transportation between Asia and Central America.

Port expansion

The expansion of the San Lorenzo port, at an estimated cost of $150 million, will involve the construction of a 300-meter pier and dredging of the dock.

China Harbour Engineering Company is “the most important construction company in China and the third-largest in the world. This is practically part of the brotherhood agreement between these countries,” Carlos Bueso, a manager at ENP, was quoted by local media recently.

“The long-term benefits will depend on the deals that are made, of course. However, if the … funds are handled correctly, it is likely that there will be a particularly worthwhile investment and development for both parties,” Frank Bardales, an international relations expert at the Honduras Defense University, said.

“From China’s relationship with the rest of Central America, it is evident that if the funds are used correctly and there is no detour or corruption, it is very likely that there will be greater development on the part of the states,” said Bardales.

The foreign relations ministry of Honduras established diplomatic relations with Beijing on March 25.

As the partnership between Honduras and China builds up in facilitating infrastructure development and fostering economic growth, Young believes the cooperation could help both countries improve trade with Latin America and the United States.

The proximity of the United States would allow us to ship the manufactured products to the US market in a short time, said Young.

During the official trip by the president to Beijing, it was announced that both countries would negotiate a free trade agreement while Honduras would actively participate in the Belt and Road Initiative.

Honduras already has FTAs with the European Union, the US, Canada, Colombia, Chile, Peru, Mexico, and Japan, among others.