Honduras asks China to invest $20 billion in transoceanic rail line 

The administration of Honduran President Xiomara Castro is seeking funds from China to help build a $20 billion rail line that would connect the country’s Atlantic and Pacific coasts. 

Honduras and China have been negotiating a free trade agreement between the two countries after the Central American country broke diplomatic ties with Taiwan and established a relationship with Beijing in March. 

During the negotiations, held between Freddy Cerrato, the Honduran Economic Development Minister, and China’s Minister of Commerce Wang Wentao, the two sides discussed several infrastructure projects.  

"We presented (Chinese officials) with the projects that Honduras is interested in getting financed, that are vital for the development of our country," said Cerrato.

"We're talking about building dams, the construction of a transoceanic train that also has to do with our electric generation system," Cerrato said. 

The proposed train would take about 15 years to build and would cost around $20 billion. According to the Honduran government, the rail line would increase connectivity throughout the country and bring more trade opportunities for Honduras. 

Chinese officials showed interest in financing these large-scale projects, saying that there was a possibility to fund them using a combination of public and private investments. The extent of how much China is willing to invest in these projects, however, is still unknown. 

The two countries are expected to reach a free trade agreement this year, according to the Honduran deputy minister of economic development Melvin Redondo.

Last month, China approved Honduran imports of bananas, coffee, and shrimp. However, other export goods that are still under discussion include Honduran beef, melon, and cigars.

Honduras is the latest country to switch its recognition to China, following the footsteps of El Salvador, Nicaragua, Costa Rica, and Panama.

Taiwan currently has only 13 official diplomatic partners, half of which are small countries in Latin America and the Caribbean: Guatemala, Belize, Haiti, Paraguay, Saint Lucia, Saint Kitts and Nevis, and the Grenadines.