Honduras denies lack of transparency accusations over interoceanic rail corridor

The Honduran government denied accusations of a lack of transparency and nepotism in the process of building the interoceanic freight railway, which could cost as much as US$20bn. 

Héctor Manuel Zelaya, head of the commission for the interoceanic railway project (Confi) – and the son and private secretary of President Xiomara Castro – responded to concerns about the extraordinary powers that will allow him to award no-bid contracts.

“It's required to give Confi legal faculties to allow management of an extraordinarily sized project,” he said on social media. “We understand that a project of this magnitude generates reactions due to the country's economic and political interests but it is our duty to put public interest first and turn the interoceanic rail project into a tangible reality for the people and the development of Honduras.”

A presidential decree published on March 26 states that Zelaya will have the power to hire personnel, contract companies and manage teams. His designation to head Confi led to a political backlash.

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

The project was declared of urgent need, but first vice president Salvador Nasralla said the declaration did not make sense since it would 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 who can be from the opposition.