Mr. Shangkong | China's Nicaraguan canal project wise to learn lessons from Panama canal

This year marks the 100th anniversary of the Panama Canal - also known as the world's greatest shortcut - connecting the Atlantic and Pacific oceans.

It is a timely backdrop to the start of construction of a rival canal in Nicaragua with an estimated investment of US$50 billion. This will see the Chinese play a similar role to that played out by the Americans in Panama a century ago.

The high-profile project in Nicaragua, backed mainly by a mysterious Chinese company said to have close ties with the Chinese military, made global headlines well before construction was officially launched last week. Questions yet to be answered include whether the source of the Chinese capital comes from the government, in one way or another. Then there is the matter of a security role for Russia at the new canal - a challenge for Washington.

I was in Panama for a holiday last week. When I asked my local travel guide about the rival canal project, he opened his comments by saying that the US helped Panama gain its unique position on the world map by finishing the canal even after the French abandoned the original plan. But he also has mixed feelings about the Americans, especially after the US invasion of his country in 1989 that led to many deaths.

The US strengthened its leading role in global political and military affairs through its tight control of the canal for decades. But unrest grew when Panamanians felt they were losing out on the benefits.

Today, Nicaraguans have already taken to the streets to protest against the new project on concerns over transparency and that the benefits would be concentrated among senior Nicaraguan government officials and the Chinese who will make their fortunes from it.