Global InformationNicaragua Canal information
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| Nicaragua Canal | |
|---|---|
 Nicaragua Canal Project (2014) (blue line). Stars indicate the proposed Brito and Camilo Locks. The red line is the border between Nicaragua (above) and Costa Rica (below). | |
| Specifications | |
| Length | 270 km (170 miles) |
| Status | Abandoned[1][2][3] |
| History | |
| Original owner | HK Nicaragua Canal Development Investment |
| Date of act | 2013 |
| Geography | |
| Start point | Punta Brito |
| End point | Bluefields |
The Nicaragua Canal (Spanish: Canal de Nicaragua), formally the Nicaraguan Canal and Development Project (also referred to as the Nicaragua Grand Canal, or the Grand Interoceanic Canal) was a proposed shipping route through Nicaragua to connect the Caribbean Sea (and therefore the Atlantic Ocean) with the Pacific Ocean. Scientists were concerned about the project's environmental impact, as Lake Nicaragua is Central America's key freshwater reservoir[4] while the project's viability was questioned by shipping experts and engineers.[5]
Construction of a canal using the San Juan River as an access route to Lake Nicaragua was first proposed in the early colonial era. After the United States purchased the French interests in the Panama Canal in the early 20th century, it decided not to build in Nicaragua, but it secured rights and conducted studies for such a canal as a supplement.[6]
In June 2013, Nicaragua's National Assembly approved a bill to grant a 50-year concession to finance and manage the project to the HK Nicaragua Canal Development Investment Group (HKND) headed by Wang Jing, a Chinese businessman.[7][8][9][10][11][12] The concession could have been extended for another 50 years once the waterway was operational.[13]
In 2015, media reports suggested the project would be delayed and possibly cancelled because Wang's personal wealth declined greatly as a result of the 2015–16 Chinese stock market crash.[5][14] "Major works" such as dredging were to take place after the finishing of a Pacific Ocean wharf, whose construction was planned to start in late 2016.[5] The Nicaraguan government failed to present reliable information about whether or not the project could be financed, thus casting doubt over whether it would be completed.[15][16][17][18] The HKND Group stated that financing would come from debt and equity sales and a potential initial public offering (IPO).[5]
By May 2017, no concrete action had been taken toward constructing the canal and further doubts were expressed about its financing.[19] In February 2018, analysts widely viewed the project as defunct,[1][3][20] though the head of the project insisted work was on-going[1] and HKND, which closed its offices in April 2018,[21] retained the legal rights to the concession for the canal and side projects.[22]
- ^ a b c "Incertidumbres financieras desvanecen sueño de canal en Nicaragua". El Financiero (in Spanish). AFP. 21 February 2018.
- ^ "Le projet de canal du Nicaragua prend l'eau". Le Figaro (in French). 21 February 2018.
- ^ a b Cropsey, Seth (9 April 2018). "China sets its sights on South America". The American Interest.
China has abandoned its attempts to construct a Nicaraguan Canal to compete with its Panamanian counterpart.
- ^ Passary, Sumit (5 March 2015). "Scientists wary about environmental effects of canal-building project in Nicaragua". Tech Times. Retrieved 11 March 2015.
- ^ a b c d McDonald, Michael D. (17 March 2016). "China slowdown not holding back Nicaragua canal, contractor says". BloombergBusiness. Retrieved 21 March 2016.
- ^ Brodhead, Michael J., "'A Wet, Nasty Job': Army Engineers and the Nicaragua Canal Survey of 1929-1931," Federal History, 4 (2012), pp 111-130.
- ^ "Nicaragua canal plan not a joke - Chinese businessman". BBC News. 26 June 2013. Retrieved 26 June 2013.
- ^ Rogers, Tim (11 September 2012). "Nicaragua taps China for canal project". Nicaragua dispatch. Archived from the original on 14 September 2012.
- ^ "Nicaragua signs memorandum with Chinese company to build a canal between two oceans". Inside Costa rica. 10 September 2012.
- ^ Watts, Jonathan (6 June 2013). "Nicaragua fast-tracks Chinese plan to build canal to rival Panama". The Guardian. London. Retrieved 12 June 2013.
- ^ Watts, Jonathan; Richards, Gareth (6 June 2013). "Nicaragua gives Chinese firm contract to build alternative to Panama Canal". The Guardian. London. Retrieved 12 June 2013.
- ^ "Nicaragua Congress approves ocean-to-ocean canal plan". BBC News. 13 June 2013. Retrieved 14 June 2013.
- ^ De Cordoba, Jose (13 June 2013). "Nicaragua revives its canal dream". The Wall Street Journal (Online ed.). Retrieved 9 March 2014.
- ^ South China Morning Post 2015/11/28 "Chinese company postpones US$50 billion canal project in Nicaragua as chairman’s personal fortune tumbles"
- ^ "Doubts deepen over Chinese-backed Nicaragua canal as work starts". Reuters. 26 December 2014.
- ^ "Doubts raised over Nicaraguan canal project as trade patterns shift". South China Morning Post. 18 January 2015.
- ^ Rogers, Tim (30 January 2015). "Watch Nicaraguan student challenge Sandinista canal rep in Spain". Nicaragua Dispatch. Retrieved 31 December 2015.
- ^ "Nicaragua Grand Canal a road to ruin". PanAm Post. 26 January 2015. Archived from the original on 30 June 2015. Retrieved 31 January 2015.
- ^ Cite error: The named reference
peraltawas invoked but never defined (see the help page). - ^ Goldberg, Beverly (27 August 2018). "Is the Nicaraguan mega-canal failure good news for indigenous communities?". Open Democracy.
- ^ Cite error: The named reference
Bloomberg2018was invoked but never defined (see the help page). - ^ "Nicaragua pension changes ignite fiery protests". Tampa Bay Times. AP Explains. The Associated Press. 23 April 2018. Archived from the original on 23 April 2018. Retrieved 23 April 2018.