Nicaragua mulls reviving US$50bn canal project

To compete with Panama, Nicaragua is planning to revive a US$50bn interoceanic canal project, which was approved 10 years ago by the national assembly. 

In his independence day speech, President Daniel Ortega said the project was needed to ease freight transportation needs. 

“A canal in Nicaragua will be a reality at some point. Why? Because there is a canal in Panama that has been expanded, but international trade needs are so big that it is necessary to build a canal in Nicaragua.” 

When the project was approved, a 50-year operating concession was granted to Hong Kong Nicaragua Canal Development (HKND), led by Chinese investor Wang Jing. Nicaragua would receive US$10mn annually and company shares. 

However, environmental studies were never filed and HKND ran into financial trouble after a collapse of the Chinese stock market reduced Wang Jing’s wealth. Political opposition and social protests led by celebrities and affected landowners (pictured) also surged. 

The 278km canal was planned to connect the east and west, measure 230m-520m in width and 30m in depth, which would make it a bigger infrastructure than the Panama Canal.