News / Americas

Nicaragua Approves Route for $40B Canal Linking Oceans

FILE - A boater navigates across Cocibolca Lake, also known as Lake Nicaragua, near Granada, Nicaragua, June 7, 2013.
FILE - A boater navigates across Cocibolca Lake, also known as Lake Nicaragua, near Granada, Nicaragua, June 7, 2013.
Reuters

A Nicaraguan committee approved a proposed route on Monday for a $40 billion shipping channel across the Central American country that would compete with the Panama Canal.

The committee of government officials, businessmen and academics approved a 172-mile (278-km) route from the mouth of the Brito river on the Pacific side to the Punto Gorda river on the Caribbean that was proposed by executives from the HK Nicaragua Canal Development Investment Co. Ltd. (HKND Group).

The Hong Kong-based HKND group, which is leading the project, is headed by Chinese lawyer Wang Jing, who also heads Chinese company Xinwei Telecom Enterprise Group.

The proposed canal would pass through Lake Nicaragua, Central America's largest lake, and will be between 230 meters and 520 meters (755 feet to 1,706 feet) wide and 27.6 meters (90 feet) deep, said HKND engineer Dong Yunsong.

The proposed route still faces environmental and social impact studies that could recommend some changes to the plan, but those studies should be finished later this year to allow work to begin by December, said committee member Telemaco Talavera.

Opponents of the plan are concerned about the canal's effect on Lake Nicaragua, an important fresh water source for the country, as well as the impact on poor communities.

The plan is to finish the canal in 2019 and begin operations in 2020, Talavera said.

The proposed channel would be more than three times longer than the 48-mile (77-km) Panama Canal, which took the United States a decade to build at the narrowest part of the Central American isthmus. It was completed in 1914.  

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