Accusations of nepotism, obfuscation surrounding Honduras’ interoceanic rail project

Appointing her son and private secretary, Héctor Zelaya, as the head of Confi, the entity overseeing Honduras' US$10-20bn interoceanic rail corridor, has created a political backlash for President Xiomara Castro, adding to accusations of obscurantism.

A presidential decree, published on March 26, states that Zelaya will have the power to hire personnel, contract companies and manage teams. He will also be able to sign contracts without bidding processes, which has raised alarms. 

The project was declared of urgent need, but first vice president Salvador Nasralla said the declaration didn’t make sense since it will take at least 10 years to be built. He also said that Zelaya lacks the expertise for the position, news outlet Expediente Público reported.

Honduras has three vice presidents, which are popularly elected and may come from the opposition.

Other concerns are related to a measure that was published March 8 and which orders information on international entities and bilateral agreements to remain confidential for 10 years – which could affect the interoceanic project negotiations.

“Without considering each case separately, it has been decided that all treaty negotiations will be classified for up to 10 years, and the question is why. It is concerning,” Expediente Público quoted international law expert Joaquín Mejía as saying.  

The US, Japan, South Korea and Spain formally expressed interest in investing in the corridor. China has also signaled interest to participate in the works. 

“Now [China] is trying in Honduras because it knows that the interoceanic canal in Nicaragua is not viable, neither environmentally, technically nor financially, but that a dry canal or a railroad from the Caribbean to the Pacific across Honduran territory would be viable,” international affairs expert Carlos Murillo told Expediente Público. 

The 390km corridor is planned to link the Pacific port of Isla del Tigre and Castilla port on the Atlantic coast.