Taken from Forbes Central America
Panama, El Salvador, Guatemala, Honduras, Costa Rica, the Dominican Republic, and Nicaragua are increasingly at the forefront with first-world megaprojects.
Megaprojects in Central America are varied, encompassing tourism, real estate, cities, and more. They all share the common goal of fostering growth in their countries, making them globally attractive, and above all, generating economic recovery, even in these challenging times when the pandemic is not yet completely over and geopolitical issues are affecting the entire planet.
“This type of investment has a direct impact on the macro-stability of the region, derived from an effect on the aggregate demand curves, stimulating both consumption and spending, which has an economic multiplier effect on productive and labor reactivation,” says Dr. Juan Diego Sánchez Sánchez, financial analyst and lawyer specializing in economic matters.
Sanchez adds that the impact can also be observed directly in the reduction of poverty, but also indirectly through economic effects on variables such as migration, insecurity, and tourism, among others.
Megaprojects in Costa Rica
In March, construction began on the first stage of the Nya on a 900-hectare plot of land in Liberia, Guanacaste, Costa Rica; located very close to the Daniel Oduber International Airport, it has an initial investment of 100 million dollars (mdd).
This first phase is expected to be completed by the end of 2023, including condominiums, a commercial area, and access to the public beach. The first phase of construction is expected to generate 600 jobs.
Megaprojects in Guatemala
Infrastructure projects proposed since 2021 include: Modernization of La Aurora International Airport, with an estimated investment of $120 million; road interconnection and urban passenger transport of the north-south axis of Guatemala City, with a projected investment of $770 million; and rehabilitation, administration, operation, and maintenance of the Escuintla-Puerto Quetzal Highway with toll collection, with an estimated investment of $80 million.
Additionally, the mass transit system for the east-west axis of the Guatemala metropolitan area, with a budget yet to be determined. Construction, expansion, and improvement of the Guatemala City bypass via the CA-09 North-CA-01 East Expressway Interconnection, $300 million. State Administrative Center (CAE) in Guatemala City, $250 million. And Tecún Umán II Intermodal Port, $40 million.
Megaprojects in Honduras
Honduras is planning the construction of several megaprojects in Central America, one of them in the Gulf of Fonseca, a maritime vehicular bridge that will connect Amapala, on Isla del Tigre, with the mainland from Coyolito.
The initiative undertaken by the central government, through the Ministry of Infrastructure and Public Services (INSEP), requires an investment of 207,766.4 million dollars for the communication route that will connect with the Dry Canal, guaranteeing the Pacific-Atlantic connection; the Central American Bank for Economic Integration (CABEI) will be the financial entity.
Megaprojects in Nicaragua
The Minister of Energy and Mines, Salvador Mansell, announced a new megaproject, in the form of a $564.1 million investment in electrical and telecommunications infrastructure works, involving three Chinese companies, one Korean company, and two companies specializing in solar energy.
However, local media said that Mansell did not mention that two of the three Chinese companies — China Communications Construction Company Limited (known as CCCC) and Huawei — are sanctioned by the U.S. Treasury Department, and that Interamerican Solar SA and Nordic SA are two unknown companies even to energy industry experts.
Megaprojects in the Dominican Republic
President Luis Abinader revealed that the Pedernales Tourism Development Project, one of the most important initiatives of this administration, will be carried out in four phases. The first phase will begin with six hotel chains, over an average total period of 10 years, and with an estimated investment of $2.245 billion.
He reported that the first phase stipulates an investment of $1.3 billion for the construction of 4,700 rooms, which will become 12,000 rooms at the end of the project.
Megaprojects in El Salvador
With the transformation of the country as its goal, Bukele's plan aims to create a city shaped like a currency and provide it with services such as restaurants, residential areas, shops, and even an airport. The city will be exempt from income, capital gains, and property taxes; the only tax would be the value-added tax (VAT). This VAT is intended to finance the bonds issued for construction and services such as garbage collection.
The public infrastructure is estimated to cost around 300,000 bitcoins, more than 15 billion euros. President Bukele's unwavering faith in the cryptocurrency, comparing the creation of his 'Bitcoin City' to the circular cities of Alexander the Great, has generated some skepticism among Salvadorans. "If we want Bitcoin to spread throughout the world, we should build some Alexandrias," the president added.
Megaprojects in Panama
The Panamanian government launched three major transportation and energy projects with international partners and investment totaling over $4 billion. These megaprojects include the construction of Central America's first natural gas-fired power plant, Panama Metro Line 3, and the fourth bridge over the Panama Canal.
These projects continue a series of massive infrastructure investments launched and successfully completed by the Government of Panama as part of President Varela's five-year infrastructure plan, which secured more than $19 billion in transportation, housing, basic sanitation, and drinking water.
