HOW OVERAMBITIOUS SUEZ CANAL PROJECT
RUINED EGYPT
- Dr. AB Thapa
The history of the construction of the Suez Canal in the 19th century provides a glaring example how the Egypt’s economy was totally devastated. Government was declared bankrupt. Foreign intervention finally compelled Egypt to relinquish sovereignty. On the contrary the financing country the Great Britain enormously profited from the Suez Canal project. Thus, implementation of overambitious water resources development project without fully studying the financial, technical, environmental and all other relevant implications can be catastrophic for a country like Nepal.
Old Canal
The Isthmus of Suez so obviously provided a short sea route from the Mediterranean to the Indian Ocean and beyond as against the sea voyage around Africa that a canal was dug in antiquity The first canal between the Nile River delta and the Red Sea was excavated about the 13th century BC, possibly at the time of Egyptian ruler, either Seti I or Ramses II. For long periods of time during the next 1000 years the canal was neglected, but several rulers at various times had it re-excavated or modified. All efforts to maintain it in good condition were finally abandoned in the 8th century AD. From time to time thereafter various proposals to dig a canal across the Isthmus of Suez were advanced, but no action was taken.\
New Suez Canal
In 1854 the French diplomat and engineer Vicomte Ferdinand Marie de Lesseps succeeded in arousing the interest of the Egyptian ruler Said Pasha in the Suez Canal project. Egyptian ruler authorized to construct the Suez Canal. The construction of the canal started in 1859 and ended in 1869.
Canal Alignment
Suez Canal is an artificial waterway running north to south across the Isthmus of Suez in northeastern Egypt. It connects the Mediterranean Sea with the Gulf of Suez, an arm of the Red Sea. The canal provides a shortcut for ships operating between both European and American ports and ports located in southern Asia, eastern Africa, and Oceania. . It is one of the world's most heavily used shipping lanes. The Suez Canal is 195 km long. The minimum bottom width of the channel is 60 m and ships of 16 m draft can make the transit. After it was opened to navigation in 1869, initially the Suez Canal measured only 8 m deep, 22 m wide at the bottom, and 70 m wide at the surface.
Suez Canal can accommodate ships as large as 150,000 dead weight tons fully loaded. It has no locks, because the Mediterranean Sea and the Gulf of Suez have roughly the same water level. The canal utilizes three bodies of water—Lake Manzilah, Lake Timsāh, and the Bitter Lakes (the latter is actually one continuous body of water)—and is not the shortest distance across the isthmus. Most of the canal is limited to a single lane of traffic, but at several places passing bays exist, and two-lane bypasses are located in the Bitter Lakes and between Al Qanţarah and Ismailia. The Suez Canal is an open cut, without locks,
Construction of the Canal
In 1858 La Compagnie Universelle du Canal Maritime de Suez (Universal Company of the Maritime Suez Canal) was formed with authority to cut a canal and to operate it for 99 years, after which ownership would return to the Egyptian government. The company was originally a private Egyptian concern, its stock owned chiefly by French and Egyptian interests. In 1875 the British government purchased Egypt's shares.
Construction began in 1859 and took 10 years instead of the 6 that had been envisaged. Climatic difficulties, a cholera epidemic in 1865, and early labour troubles all slowed down operations. An initial project was the cutting of a small canal.
At first, digging was done by hand with picks and baskets, peasants being drafted as forced labour. Later, dredgers and steam shovels operated by European labourers took over, and, as dredging proved cheaper than dry excavation, the terrain was artificially flooded and dredged wherever possible. Other than in the few areas where rock strata were met, the entire canal was driven through sand or alluvium. In August 1869 the waterway was completed, and it was officially opened with an elaborate ceremony in November.
Egypt was Declared Bankrupt
Construction of Suez Canal became too heavy financial burden on Egypt. Economic conditions quickly deteriorated forcing Egypt to borrow from foreign creditors to finance the project. . To stave off economic crisis, the government adopted drastic measures such as collecting taxes in advance, selling its shares in the company that operated the Suez Canal, and finally declaring bankruptcy. Egypt’s inability to pay back its loans led to the appointment of foreign debt commissioners to monitor Egypt’s finances in 1876, the inclusion of British and French ministers in Egypt’s cabinet in 1878, and finally the forced abdication of ruler in 1879. Under European pressure, a new ruler was installed who cooperated with Egypt’s foreign creditors.
Great Jubilation
Completion of the construction of the Suez Canal in 1869 had been marked with a great jubilation among the western power countries while the Egypt was slowly sinking into deep financial crisis. Verdi, Giuseppe (1813-1901), Italian operatic composer, whose works stand among the greatest in the history of Italian opera Aïda (1871), perhaps Verdi's most popular opera based on Egyptian story of ancient pharaoh period, was specially commissioned to celebrate the opening of the Suez Canal. It was first performed in Cairo.
The Winner
In 1875, financial troubles compelled the Egyptian ruler to sell his holding, which was at once bought by the British government. Until that year the shares had remained below their issue price of 500 francs each. With the British purchase (at 568 francs each) quick appreciation took place. The share value shot up to more than 3,600 francs.
