By Michael McDonald

(Bloomberg) — Manuel Coronel Kautz isn’t a person who’s simply deterred. Good factor. Because as head of Nicaragua’s Canal Authority, he’s seen the $50 billion, Chinese-backed undertaking undergo setback after setback. The newest: 12 months of building delays on a key port simply as monetary turmoil in China deepens hypothesis the funding gained’t come by means of.

“Skepticism about the canal will fade as things start happening,” Kautz mentioned. “We see everything in such a macro way that I don’t worry about the stock market. It changes everyday.”

Three years after President Daniel Ortega awarded the 170- mile lengthy undertaking to Hong Kong-based HKND Group, topographical and archaeological research are nearing completion, Kautz mentioned. Chinese officers who traveled to Nicaragua final month visited the Pacific Coast city of Brito, the place building on the port is now scheduled to start in December, a couple of 12 months not on time.

The viability of the undertaking, which might be 300 miles (480 kilometers) from the century-old Panama Canal, has been questioned by transport consultants and engineers since Ortega first introduced his plans and the Central American nation’s legislature awarded the contract with out accepting competing bids.

Panama’s Expansion

Backers say the waterway will appeal to bigger vessels that gained’t match by means of a brand new set of locks on the Panama Canal — a $5.3 billion undertaking that’s almost two years not on time — and supply a big increase to Nicaragua’s $12 billion economic system.

In 2015, officers in Nicaragua mentioned financing for his or her canal could possibly be secured by means of a share sale in Hong Kong. Kautz mentioned that a lot of the financing would now in all probability come from personal capital. He mentioned the undertaking could possibly be divided into a number of phases so smaller sums of cash will be raised for every portion.

Anti-canal protests continued in January as marchers push to annul the 50-year concession granted to HKND. A survey by Cid Gallup and revealed in newspaper Confidencial confirmed that 34 % of respondents thought-about the canal to be “pure propaganda.” Skeptical residents say the canal is a plan by Ortega to drum up assist forward of November’s presidential election. A separate research revealed by the federal government mentioned that 81 % of Nicaraguans assist the canal.

“I think the canal only exists in Ortega’s head,” mentioned 24- year-old college pupil Yader Sequeira, who lives within the city of El Tule close to the canal route. “Absolutely nothing is happening.”

Kautz doesn’t see it that method.

“Things are being prepared to start at the end of this year, starting with the port on the Pacific coast,” he mentioned. “Things are moving forward.”

©2016 Bloomberg News