Editing Nicaraguan Canal and Development Project

{{short description|Proposed shipping route across Nicaragua}}
{{use dmy dates |date=May 2022}}
{{Infobox canal
| name        = Nicaraguan Canal and Development Project
| image       = NicaraguaCanal.5.jpg
| image_size  = 
| image_caption     = 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).
| former_names      = 
| modern_name      = 
| original_owner     = [[HK Nicaragua Canal Development Investment]]
| engineer    = 
| other_engineer  = 
| date_act    = 2013
| date_began  = 
| date_use    = <!-- {{Start date|YYYY}} -->
| date_completed   = 
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| len_ft      = 
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| beam_ft     = 
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| start_point       = [[Rio Brito|Punta Brito]]
| original_start     = 
| start_note  = 
| end_point         = [[Bluefields]]
| original_end       = 
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| branch      = 
| branch_of   = 
| connects_to        = 
| locks       = 
| original_num_locks     = 
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| length_km   = 270
| original_length_mi = 
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| elev_ft     = 
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| status      =  Abandoned<ref name=cancellation>{{cite news  |url=https://www.elfinancierocr.com/economia-y-politica/incertidumbres-financieras-desvanecen-sueno-de/7HFF44CY3RBVVE7BR3YRKJ3XZY/story/ |title=Incertidumbres financieras desvanecen sueño de canal en Nicaragua |website=El Financiero |agency=AFP |date=21 February 2018  |language=Spanish}}</ref><ref>{{cite news |url=http://www.lefigaro.fr/societes/2018/02/21/20005-20180221ARTFIG00190-le-projet-de-canal-du-nicaragua-prend-l-eau.php |title=Le projet de canal du Nicaragua prend l'eau |website=Le Figaro |language=French |date=21 February 2018}}</ref><ref name=Interest/>
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}}

The '''Nicaraguan Canal and Development Project''', informally the '''Nicaragua Canal''' ({{langx|es|Canal de Nicaragua}}, 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<ref name="TechTimes2015">{{cite web |url=http://www.techtimes.com/articles/37433/20150305/scientists-wary-about-environmental-effects-of-canal-building-project-in-nicaragua.htm |title=Scientists wary about environmental effects of canal-building project in Nicaragua |last=Passary |first=Sumit |date=5 March 2015 |website=Tech Times |access-date=11 March 2015}}</ref> while the project's viability was questioned by shipping experts and engineers.<ref name="Bloomberg-2016-03-17">{{cite news |last=McDonald |first=Michael D. |date=March 17, 2016 |title=China slowdown not holding back Nicaragua canal, contractor says |url=https://www.bloomberg.com/news/articles/2016-03-17/china-slowdown-not-holding-back-nicaragua-canal-contractor-says |access-date=21 March 2016 |publisher=BloombergBusiness}}</ref>

Construction of a canal using the [[San Juan River (Nicaragua)|San Juan River]] as an access route to Lake Nicaragua was first proposed in the early colonial era. After the [[History of the United States (1865–1918)|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.<ref>Brodhead, Michael J., "[https://shfg.wildapricot.org/resources/Documents/FH%205%20(2013)%20Brodhead.pdf 'A Wet, Nasty Job': Army Engineers and the Nicaragua Canal Survey of 1929-1931]," ''Federal History'', 4 (2012), pp 111-130.</ref>

In June&nbsp;2013, [[National Assembly (Nicaragua)|Nicaragua's National Assembly]] approved a bill to grant a 50-year [[concession (contract)|concession]] to finance and manage the project to the [[HK Nicaragua Canal Development Investment]] Group (HKND) headed by [[Wang Jing (businessman)|Wang Jing]], a Chinese businessman.<ref>{{cite news |url=https://www.bbc.co.uk/news/world-latin-america-23058301 |title=Nicaragua canal plan not a joke - Chinese businessman |work=BBC News |access-date=2013-06-26 |date=2013-06-26}}</ref><ref name="nicaraguadispatch.com">{{cite web |url=http://www.nicaraguadispatch.com/news/2012/09/nicaragua-taps-china-for-canal-project/5206 |first=Tim |last=Rogers |url-status=dead |title=Nicaragua taps China for canal project |newspaper=Nicaragua dispatch |date=September 11, 2012|archive-url=https://web.archive.org/web/20120914040857/http://www.nicaraguadispatch.com/news/2012/09/nicaragua-taps-china-for-canal-project/5206 |archive-date=14 September 2012 }}</ref><ref name="insidecostarica.com">{{cite web |url=http://insidecostarica.com/2012/09/10/nicaragua-signs-memorandum-with-chinese-company-to-build-a-canal-between-two-oceans/ |title=Nicaragua signs memorandum with Chinese company to build a canal between two oceans |newspaper=Inside Costa rica |date=2012-09-10}}</ref><ref>{{cite news |last=Watts |first=Jonathan |title=Nicaragua fast-tracks Chinese plan to build canal to rival Panama |url=https://www.theguardian.com/world/2013/jun/11/nicaragua-chinese-plan-canal-panama |access-date=12 June 2013 |newspaper=[[The Guardian]] |date=6 June 2013 |location=London}}</ref><ref>{{cite news |first1=Jonathan |last1=Watts |first2=Gareth |last2=Richards |title=Nicaragua gives Chinese firm contract to build alternative to Panama Canal |url=https://www.theguardian.com/world/2013/jun/06/nicaragua-china-panama-canal |date=6 June 2013 |access-date=2013-06-12 |location=London |work=The Guardian}}</ref><ref>{{cite news |title=Nicaragua Congress approves ocean-to-ocean canal plan |url=https://www.bbc.co.uk/news/world-latin-america-22899744 |access-date=14 June 2013 |work=BBC News |date=2013-06-13}}</ref> The concession could have been extended for another 50 years once the waterway was operational.<ref name="Cordoba2013">{{cite news |last=De Cordoba |first=Jose |title=Nicaragua revives its canal dream |newspaper=The Wall Street Journal |edition=Online |date=2013-06-13 |url=https://online.wsj.com/news/articles/SB10001424127887323734304578543432234604100 |access-date=2014-03-09}}</ref>

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]].<ref name=Bloomberg-2016-03-17/><ref>South China Morning Post 2015/11/28 "Chinese company postpones US$50 billion canal project in Nicaragua as chairman’s personal fortune tumbles"</ref> "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.<ref name=Bloomberg-2016-03-17/> 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.<ref>{{cite news |work=Reuters |title=Doubts deepen over Chinese-backed Nicaragua canal as work starts |date=December 26, 2014 |url=https://www.reuters.com/article/us-nicaragua-canal-idUSKBN0K410620141226}}</ref><ref>{{cite news |title=Doubts raised over Nicaraguan canal project as trade patterns shift |date=18 January 2015 |newspaper=South China Morning Post |url=http://www.scmp.com/business/companies/article/1681680/doubts-raised-over-nicaraguan-canal-project-trade-patterns-shift}}</ref><ref>{{cite news |first=Tim |last=Rogers |date=30 January 2015 |title=Watch Nicaraguan student challenge Sandinista canal rep in Spain |newspaper=Nicaragua Dispatch |url=http://nicaraguadispatch.com/2015/01/watch-nicaraguan-student-challenge-sandinista-canal-rep-in-spain/ |access-date=31 December 2015}}</ref><ref>{{cite web |title=Nicaragua Grand Canal a road to ruin |newspaper=PanAm Post |date=26 January 2015 |url=http://panampost.com/panam-staff/2015/01/26/nicaragua-grand-canal-a-road-toruin/ |access-date=31 January 2015 |archive-date=30 June 2015 |archive-url=https://web.archive.org/web/20150630025659/http://panampost.com/panam-staff/2015/01/26/nicaragua-grand-canal-a-road-toruin/ |url-status=dead }}</ref> The HKND Group stated that financing would come from debt and equity sales and a potential [[initial public offering]] (IPO).<ref name=Bloomberg-2016-03-17/>

By May&nbsp;2017, no concrete action had been taken toward constructing the canal and further doubts were expressed about its financing.<ref name=peralta/> In February&nbsp;2018, analysts widely viewed the project as defunct,<ref name=cancellation/><ref name=Interest>{{cite news |first=Seth |last=Cropsey |date=2018-04-09 |title=China sets its sights on South America |website=The American Interest |url=https://www.the-american-interest.com/2018/04/09/china-sets-sights-south-america/ |quote=China has abandoned its attempts to construct a Nicaraguan Canal to compete with its Panamanian counterpart.}}</ref><ref>{{cite news |first=Beverly |last=Goldberg |website=Open Democracy |date=27 August 2018 |title=Is the Nicaraguan mega-canal failure good news for indigenous communities? |url=https://www.opendemocracy.net/democraciaabierta/beverly-goldberg/is-nicaraguan-mega-canal-failure-good-news-for-indigenous-communi}}</ref> though the head of the project insisted work was on-going<ref name=cancellation/> and HKND, which closed its offices in April&nbsp;2018,<ref name="Bloomberg2018" /> retained the legal rights to the concession for the canal and side projects.<ref name=":0">{{cite news
 |title=Nicaragua pension changes ignite fiery protests
 |series=AP Explains
 |date=2018-04-23
 |agency=[[The Associated Press]]
 |newspaper=[[Tampa Bay Times]]
 |url=http://www.tampabay.com/ap-explains-nicaragua-pension-changes-ignite-fiery-protests-ap_worldf7ec735f59954b0b8f9e4c8bdf97e130
 |access-date=2018-04-23
 |archive-date=2018-04-23
 |archive-url=https://web.archive.org/web/20180423232731/http://www.tampabay.com/ap-explains-nicaragua-pension-changes-ignite-fiery-protests-ap_worldf7ec735f59954b0b8f9e4c8bdf97e130
 |url-status=dead
 }}</ref>

In May 2024, Nicaragua's congress canceled the concession to HKND.<ref>[https://www.latimes.com/world-nation/story/2024-05-08/nicaragua-cancels-a-controversial-chinese-interoceanic-canal-concession-after-nearly-a-decade Nicaragua cancels a controversial Chinese inter-oceanic canal concession after nearly a decade] [[Los Angeles Times]] 8 May 2024. Retrieved 13 May 2024</ref>

== History ==

{{Main|Attempts to build a canal across Nicaragua}}

[[File:Nicaragua canal proposals - de.svg|thumb|The various routes proposed over the centuries, with the Panama Canal. The proposed HKND canal would have followed the red route.]]

Until the beginning of the 20th century, before the opening of the [[Panama Canal]], Nicaragua used to be the main overland trade route and hub of transshipment of goods between ocean-going vessels on the Atlantic side and those on the Pacific. In the meantime, the idea of constructing a man-made waterway through Central America has been thought about throughout history. The colonial administration of [[New Spain]] had conducted preliminary surveys. The routes suggested usually ran across Nicaragua, [[Panama]], or the [[Isthmus of Tehuantepec]] in Mexico.

The history of [[attempts to build a canal across Nicaragua]] connecting the Caribbean Sea and thus the Atlantic Ocean and the Pacific Ocean goes back at least to 1825 when the [[Federal Republic of Central America]] hired surveyors to study a route via [[Lake Nicaragua]], {{convert|32.7|m|ft}} above sea level. Many other proposals have followed. Despite the operation of the Panama Canal, which opened in 1914, interest in a Nicaragua canal has continued. With emergence of [[globalization]], an increase in commerce and the cost of fuel, and the limitations of the Panama Canal, the concept of a second canal across the American land bridge became more attractive, and in 2006 the president of Nicaragua, [[Enrique Bolaños]], announced an intention to proceed with such a project.<ref>{{cite news |first1=Hector |last1=Tobar |first2=Chris |last2=Kraul |date=September 30, 2006 |title=Rival to Panama Canal planned |newspaper=[[The Los Angeles Times]] |url=https://www.latimes.com/business/la-fi-canal30sep30,1,7948157.story?coll=la-headlines-business |access-date=August 13, 2013}}</ref> Even with the [[Panama Canal expansion project]], which began commercial operation to allow modern [[New Panamax]] vessels on 26 June 2016,<ref name=NYT062016>{{cite news |title=Panama Canal opens $5B locks, bullish despite shipping woes |date=2016-06-26 |agency=[[The Associated Press]] |newspaper=[[The New York Times]] |url=https://www.nytimes.com/aponline/2016/06/26/world/americas/ap-lt-panama-canal-expansion.html?ref=world&_r=0 |access-date=2016-06-26}}</ref> some ships would be too big for the Panama Canal.<ref>{{cite news |first=Sara |last=Miller Llana |date=November 26, 2006 |title=Megaships may displace boats in Lake Nicaragua |newspaper=[[USA Today]] |url=http://usatoday30.usatoday.com/news/world/2006-11-26-nicaragua-canal_x.htm}}</ref>

On 26&nbsp;September 2012, the [[Government of Nicaragua|Nicaraguan Government]] and the newly formed [[HKND|Hong Kong Nicaragua Canal Development Group]] (HKND) signed a memorandum of understanding that committed HKND to financing and building the "Nicaraguan Canal and Development Project".<ref name="nicaraguadispatch.com"/><ref name="insidecostarica.com"/><ref name=HKND>{{cite web |title=The project |publisher=[[HK Nicaragua Canal Development Investment]] Group |url=http://hknd-group.com/the-project/ |url-status=usurped |archive-url=https://web.archive.org/web/20140512124523/http://hknd-group.com/the-project/ |archive-date=2014-05-12 }}</ref> HKND Group is a private enterprise.<ref>{{cite web |first=Jacopo |last=Dettoni |date=2013-06-10 |title=Chinese developer of US$40bn Nicaragua's interoceanic canal "100% private" |newspaper=BN Americas |url=http://www.bnamericas.com/en/news/infrastructure/chinese-developer-of-us40bn-nicaraguas-interoceanic-canal-100-private1?idioma=en |access-date=2015-05-26}}</ref>

The Nicaraguan government subsequently approved the ''Master Concession Agreement'' with HKND on 13&nbsp;June 2013 thereby granting "the sole rights to the HKND Group to plan, design, construct and thereafter to operate and manage the Nicaragua Grand Canal and other related projects, including ports, a free trade zone, an international airport and other infrastructure development projects".<ref name=hknd-background>{{cite web |title=Project Background |publisher=[[HK Nicaragua Canal Development Investment]] |url=http://hknd-group.com/portal.php?mod=list&catid=42 |access-date=2015-01-09 |url-status=usurped |archive-url=https://web.archive.org/web/20141225204009/http://hknd-group.com/portal.php?mod=list&catid=42 |archive-date=2014-12-25}}</ref> The agreement would have lasted for 50&nbsp;years and was renewable for another 50&nbsp;years.<ref name=maritime>{{cite web |url=http://www.maritime-ceo.com/News/HKND:-The-man-behind-the-Nicaragua-Canal-/3w3c173.html |title=HKND: The man behind the Nicaragua Canal |publisher=Maritime-CEO |access-date=2015-01-09 |url-status=dead |archive-url=https://web.archive.org/web/20150110183211/http://www.maritime-ceo.com/News/HKND:-The-man-behind-the-Nicaragua-Canal-/3w3c173.html |archive-date=2015-01-10 }}</ref> HKND would have paid the government of Nicaragua US$10M annually for 10&nbsp;years, and thereafter a portion of the revenue starting at 1% and increasing later.<ref name=ibt2014>{{cite web |url=http://www.ibtimes.com/nicaraguas-canal-project-pushes-forward-despite-economic-environmental-questions-1655176 |first=Brianna |last=Lee |title=Nicaragua's Canal Project Pushes Forward Despite Economic, Environmental Questions |website=[[International Business Times]] |date=15 August 2014 |access-date=2015-05-26}}</ref>
[[Stratfor]] indicated that after 10&nbsp;years, ownership shares would periodically be handed over to Nicaragua, so that after 50&nbsp;years Nicaragua would be the majority shareholder.<ref name=sf2014>{{cite web |url=http://www.stratfor.com/analysis/nicaraguas-canal-dreams-are-still-alive#axzz3OkR95nhO |title=Nicaragua's Canal Dreams Are Still Alive |publisher=Stratfor |date=27 September 2014 |access-date=2015-01-13}}</ref>

The HKND Group performed a preliminary study phase of development to assess the technological and economic feasibility of constructing a canal in Nicaragua, as well as the potential environmental, social, and regional implications of various routes.<ref name=HKND/> The canal and other associated projects would be financed by investors throughout the world and would generate jobs for Nicaragua and other Central American countries.<ref>{{cite news |url=https://www.washingtonpost.com/business/news-summary-nicaragua-looking-to-give-chinese-company-concession-to-build-canal/2013/06/06/7882725a-cebc-11e2-8573-3baeea6a2647_story.html |archive-url=https://archive.today/20130616032436/http://www.washingtonpost.com/business/news-summary-nicaragua-looking-to-give-chinese-company-concession-to-build-canal/2013/06/06/7882725a-cebc-11e2-8573-3baeea6a2647_story.html |archive-date=2013-06-16 |series=Business |title=Nicaragua looking to give Chinese company concession to build canal |newspaper=The Washington Post |date=2013-06-06 |type=news summary |url-status=dead}}
</ref>

Initial findings of the commercial analysis conducted by HKND Group indicate that the combined effect of growth in east–west trade and in ship sizes could provide a compelling argument for the construction of a second canal, substantially larger than the [[Panama Canal expansion project|expanded Panama Canal]], across Central America. The projection at the time was that in the 2020s, growth in global maritime trade is expected to cause congestion and delays in transit through the Panama Canal without a complementary route through the isthmus, and by 2030, the volume of trade that a Nicaragua Canal could serve would have grown by 240%.<ref name=hkndgroup>
{{cite press release
 |title=Trends in global shipping trade demand a new canal
 |url=http://hknd-group.com/trends-in-global-shipping-trade-demand-a-new-canal/
 |archive-url=https://web.archive.org/web/20140511014434/http://hknd-group.com/trends-in-global-shipping-trade-demand-a-new-canal/
 |date=2014
 |archive-date=11 May 2014
 |publisher=[[HK Nicaragua Canal Development Investment]] Group
 |url-status=usurped
 |access-date=27 January 2016
}}
</ref>

On 10 June 2013, [[The Associated Press]] reported that the National Assembly's Infrastructure Committee voted nearly unanimously in favor of the project, with four members abstaining.<ref>{{cite news |url=https://www.foxnews.com/world/nicaraguan-legislators-push-ahead-on-giving-chinese-company-concession-to-build-operate-canal/ |title=Nicaraguan legislators push ahead on giving Chinese company concession to build, operate canal |first=Luis |last=Galeano |publisher=[[Associated Press]] |date=11 June 2013}}</ref> On 13 June, Nicaragua's legislature passed the legislation granting the concession.<ref>
{{cite web
 |url=http://hknd-group.com/
 |title=Home Page
 |series=Nicaragua Canal Global Trade Project
 |publisher=[[HK Nicaragua Canal Development Investment]] Group
 |website=hknd-group.com
 |access-date=20 November 2014
 |archive-url=https://web.archive.org/web/20141217061722/http://hknd-group.com/
 |archive-date=17 December 2014
 |url-status=usurped
}}
</ref> On 15&nbsp;June, Nicaraguan President [[Daniel Ortega]] and the billionaire chairman of HKND Group, [[Wang Jing (businessman)|Wang Jing]], signed the concession agreement giving HKND Group the rights to construct and manage the canal and associated projects for 50&nbsp;years.<ref name=startribune>{{cite web |url=http://www.startribune.com/business/211655041.html |title=Nicaragua's Ortega, Chinese businessman sign canal agreement |publisher=Startribune.com |access-date=20 November 2014}}</ref> An HKND Group press release read, "HKND Group successfully obtains exclusive right to develop and manage Nicaragua Grand Canal for 100&nbsp;years."<ref>{{cite press release |title=HKND Group successfully obtains exclusive right to develop and manage Nicaragua Grand Canal for 100&nbsp;years |date=2013 |publisher=[[HK Nicaragua Canal Development Investment]] Group |url=http://hknd-group.com/hknd-group-exclusive-right/ |access-date=2013-07-29 |url-status=usurped |archive-url=https://web.archive.org/web/20130815213737/http://hknd-group.com/hknd-group-exclusive-right/ |archive-date=2013-08-15}}</ref> Under the exclusive contract, Wang could skip building the canal (and making any payments to Nicaragua) and instead simply operate lucrative tax-free side projects.<ref>{{cite news |last1=Weissenstein |first1=Michael |last2=Galeano |first2=Luis Manuel |date=13 December 2013 |title=Nicaragua in thrall of Ortega's canal dream |agency=Associated Press |url=http://bigstory.ap.org/article/nicaragua-thrall-canal-dream-worries-remain |access-date=13 December 2013}}</ref>

Wang announced at a press briefing in June&nbsp;2013 that he had successfully attracted global investors to the [[United States dollar|$]]40&nbsp;billion project.<ref name="Bloomberg-2013-06-25">
{{cite news
 | last= Forsythe
 | first= Michael
 | title= Chinese Billionaire Says Nicaragua Canal Has Investors
 | date= 25 June 2013
 | publisher= [[Bloomberg News]]
 | url= https://www.bloomberg.com/news/2013-06-25/chinese-billionaire-says-nicaragua-canal-attracts-global-funding.html
}}
</ref> In January&nbsp;2014, Wang and Ortega issued a statement that the project's construction would begin in December&nbsp;2014 and end in 2019.<ref name=Titcomb2014>{{cite news |last=Titcomb |first=J. |title=£24bn rival to Panama Canal to break ground this year |newspaper=[[The Daily Telegraph]] |location=London, UK |date=2014-01-12 |url=https://www.telegraph.co.uk/finance/newsbysector/industry/engineering/10567208/24bn-rival-to-Panama-Canal-to-break-ground-this-year.html |access-date=2014-03-09}}</ref><ref name=HKND2014>{{cite web |title=Official Note |publisher=[[HK Nicaragua Canal Development Investment|HKND Group]] |date=2014-01-10 |url=http://hknd-group.com/wp-content/uploads/2014/01/official-note-by-the-Presidnetent-and-Mr-Wangjing_final.pdf |access-date=2014-03-08 |url-status=usurped |archive-url=https://web.archive.org/web/20140309111948/http://hknd-group.com/wp-content/uploads/2014/01/official-note-by-the-Presidnetent-and-Mr-Wangjing_final.pdf |archive-date=2014-03-09 }}</ref>

On 7&nbsp;July 2014, a {{convert|278|km|mi}} route for the Nicaragua Canal was approved.<ref>{{cite news |title=Nicaragua approves route for $40 billion canal linking oceans |url=https://www.reuters.com/article/us-nicaragua-canal-idUSKBN0FD06Q20140708 |work=Reuters |access-date=16 July 2014 |date=8 July 2014}}</ref> The proposed route started from the mouth of the Brito River on the Pacific side, passed through Lake Nicaragua, and ended in the Punta Gorda River on the Caribbean. The proposed canal would be between {{convert|230|and|520|m|ft}} wide and {{convert|27.6|m|ft}} deep. The ''[[Toronto Star]]'' noted that Chinese engineer Dong Yung Song said the canal's design called for the creation of a {{convert|400|km2|sqmi|adj=on}} artificial lake.<ref name=TorStar2014-07-14/> The water to fill the canal's giant locks would come from the artificial lake, not from Lake Nicaragua.

Ortega, whose government approved the agreement within one week in June&nbsp;2013, reportedly perceived the canal as the second phase of the [[Nicaraguan Revolution]], predicting that it would pull Nicaragua out of poverty and lead to the creation of 250,000&nbsp;jobs;<ref name=tele2014/> HKND said the project would create 50,000&nbsp;jobs, about half from abroad, mainly China.<ref name=VOX>{{cite news |last=Plumer |first=Brad |date=26 February 2015 |title=The fiasco that is the Nicaragua Canal, explained |website=[[Vox (website)|Vox]] |url=https://www.vox.com/2015/2/26/8114151/nicaragua-canal |access-date=15 July 2015}}</ref>

''[[The Moscow Times]]'' reported in 2014 that Russia was willing to help build the Nicaragua Canal, viewing the project in part as an opportunity to pursue strategic interests in the region.<ref>{{cite news |title=Russia plans to join Nicaragua Canal project |newspaper=[[The Moscow Times]] |date=6 May 2014 |url=http://www.themoscowtimes.com/article/499603.html}}</ref> Construction was to begin on 29&nbsp;December 2014,<ref>{{cite news |url=https://www.bbc.com/news/world-latin-america-30584559 |title=Nicaragua launches construction of inter-oceanic canal |website=BBC News |date=23 December 2014 }}</ref> and officially started a week earlier. However, owing to Nicaragua's volatile climate and seismic activity, feasibility concerns emerged over the project's future.<ref>{{cite web |url=http://www.worldpoliticsreview.com/articles/14950/if-you-dig-it-will-they-come-nicaragua-s-controversial-canal |title=If you dig it, will they come? Nicaragua's controversial canal |website=world politics review.com|date=28 January 2015 }}</ref> In November&nbsp;2015, HKND announced that they would postpone the construction of locks and excavations to late 2016 to fine-tune the design.<ref>{{cite news |url=http://america.aljazeera.com/articles/2015/11/25/controversial-nicaragua-canal-project-delayed.html |title=Controversial Nicaragua canal project delayed |website=Al Jazeera |date=25 November 2015 |access-date=22 December 2015}}</ref>

The Nicaraguan Canal and Development Project saw business rivalry greatly intensify in late 2014. [[China Harbor Engineering Company]], an experienced construction company, offered to design, construct, and finance a fourth set of locks in Panama, where it opened a regional headquarters. If built to the width of the proposed Nicaragua Canal, it would cut across a far shorter distance, and still cost only $10&nbsp;billion, according to the firm. Panama is in a better financial situation than Nicaragua to afford taking on this project in that it already has a stream of income from its existing canals.<ref>{{Cite news |last=Vidal |first=John |date=2006-10-04 |title=$20bn and 10 years to build - a giant rival for Panama canal |url=https://www.theguardian.com/environment/2006/oct/04/water.conservationandendangeredspecies |access-date=2024-02-10 |work=The Guardian |language=en-GB |issn=0261-3077}}</ref>

Alternative motives have been explored and other projects have taken priority against the water transportation venture. Bloomberg reported in 2015 that "conspiracy theories abound" including the project was a [[land grab]] by Ortega, an attempt by Ortega to "whip up" support in elections, and part of a Chinese plan to gain influence in the region.<ref name="Bloomberg-2015-08-19">
{{cite news
 | first= Michael D.  | last= McDonald
 | date= 19 August 2015
 | title= China's Building a Huge Canal in Nicaragua, But We Couldn't Find It
 | website= Bloomberg
 | url= https://www.bloomberg.com/news/articles/2015-08-19/china-s-building-a-huge-canal-in-nicaragua-but-we-couldn-t-it
}}
</ref>

By November&nbsp;2016, the president of the canal commission, Manual Coronel Kautz said "According to our schedule, we should initiate major works by the end of the year." However, Carlos Fernando Chamorro, editor of the Confidencial newspaper, said "If the People's Republic of China does not step forward, it won't happen. Wang Jing does not have the reputation to push this through. If it is just him, then the chances of this happening are zero. If the PRC steps in, then it is a big possibility."<ref>{{Cite news |url=https://www.theguardian.com/world/2016/nov/24/nicaragua-canal-interoceanic-preparations |title=Nicaragua canal: In a sleepy Pacific port, something stirs |last=Watts |first=Jonathan |date=2016-11-24 |newspaper=[[The Guardian]] |language=en-GB |issn=0261-3077 |access-date=2016-12-12}}</ref>

Following financial difficulties, HKND finally closed its headquarters offices in China in April&nbsp;2018, leaving no forwarding address or telephone numbers to be reached.<ref name=Bloomberg2018>{{cite news |url=https://www.bloomberg.com/news/articles/2018-04-26/nicaragua-canal-builder-abandons-office-in-prime-hong-kong-tower |title=Ex-billionaire abandons office in prime Hong Kong tower |first=Blake |last=Schmidt |website=Bloomberg |date=26 April 2018}}</ref>

=== Opposition ===
{{see also|2014–2018 Nicaraguan protests}}

Protests against the canal's construction occurred shortly after the official ceremony marking its beginning. Farmers feared it could cause their eviction and land [[expropriation]].

The vast land expropriations ({{cvt|2900|km2|mi2}}) under land expropriation Canal Law&nbsp;840 enacted in 2013 include a concession for carrying out seven sub-projects, among them ports, oil pipelines, free-trade zones, and developing tourist areas that could be realized in any part of the national territory.<ref>{{cite news |date=28 April 2018 |title=Nicaragua Canal project dealt new blow |website=[[Havana Times]] |url=https://www.havanatimes.org/?p=132547}}</ref><ref name="FIDH">{{cite report |url=https://www.fidh.org/IMG/pdf/nicaragua_sumup_english.pdf |title=Impact of Interoceanic canal concession on human rights. The resistance of rural communities |date=September 2016 |publisher=International Federation for Human Rights |series=Nicaragua}}</ref> In particular, this law denies any right to appeal against the expropriation decision and provides a derisory level of compensation.<ref name="FIDH" /> It also allows the investor (HKND) to buy and sell its rights over the various sub-projects "in parts", which is a highly profitable enterprise.<ref name="FIDH" /> This has been called a "land grab" and it has prompted protests,<ref>{{cite news |last=Morel |first=Blanca |date=21 February 2018 |title=Funding evaporates for Nicaragua's $50&nbsp;billion ocean-to-ocean canal |website=digitaljournal.com |agency=AFP |url=http://www.digitaljournal.com/news/world/funding-evaporates-for-nicaragua-s-50-billion-ocean-to-ocean-canal/article/515542}}</ref><ref>{{cite news |date=15 May 2018 |title=Nicaragua's anti-canal farmers demand participation and announce protests |website=[[Havana Times]] |url=https://www.havanatimes.org/?p=133379}}</ref> and some violent confrontations against security forces.<ref>{{cite news |date=12 July 2018 |title=Four police officers, one protester killed in Nicaragua protest |website=news.Yahoo.com |agency=AFP News |url=https://sg.news.yahoo.com/four-police-officers-one-protester-killed-nicaragua-protest-033725846.html}}</ref> Activists noted that the canal contract established that it must be dissolved in 72&nbsp;months, if the investor has not obtained the money to start the project; that deadline was 14&nbsp;June 2019, so they assert that the Law&nbsp;840 must be repealed.<ref>{{cite news |last=Miranda Aburto |first=Wilfredo |date=19 June 2019 |title=The six-year struggle against the Chinese Canal in Nicaragua |website=[[Havana Times]] |url=https://havanatimes.org/features/the-six-year-struggle-against-the-chinese-canal-in-nicaragua/}}</ref>

Opposition leader Eliseo Nuñez has called the deal "part of one of the biggest international scams in the world".<ref name=ibt2014/> Legal challenges that the deal violates constitutional rights were rejected by the [[Supreme Court of Nicaragua]] and a retrospective rewriting of the [[Constitution of Nicaragua]] placed HKND beyond legal challenge.<ref name=tele2014>{{cite news |url=https://www.telegraph.co.uk/news/worldnews/centralamericaandthecaribbean/nicaragua/11167697/Giant-canal-threatens-way-of-life-on-the-banks-of-Lake-Nicaragua.html |author=Nina Lakhani |title=Giant canal threatens way of life on the banks of Lake Nicaragua |newspaper=[[The Daily Telegraph]] |date=26 October 2014 |access-date=2015-01-13 |location=London}}</ref> HKND has been granted the right to expropriate land within {{convert|5|km|abbr=on}} on each side of the canal and pay only [[cadastre|cadastral value]], not market value, for property.<ref name=tele2014/> Wang, however, promised to pay fair market value.<ref>{{cite news |url=https://www.theguardian.com/world/2014/dec/24/nicaragua-protests-interoceanic-canal-rivas |title=Protests erupt in Nicaragua over interoceanic canal |newspaper=[[The Guardian]] |date=24 December 2014 |access-date=26 April 2016}}</ref> The estimates of the number of people who would be displaced range from 29,000<ref name=ap2014>{{cite web |url=http://hosted2.ap.org/APDEFAULT/89ae8247abe8493fae24405546e9a1aa/Article_2014-12-21-LT--Nicaragua-Canal%20Fight/id-ae0892a5dc324551ab32278084820eed |first=Peter |last=Orsi |title=Rising anger as Nicaragua canal to break ground |publisher=[[Associated Press|AP]] |date=21 December 2014 |access-date=2015-01-13}}</ref> to more than 100,000.<ref name=tele2014/> There are indications of local opposition to intended expropriations.<ref name=ap2014/> Thus, according to an activist leader, an unrest in Rivas in December&nbsp;2014, in opposition to the canal, left two protesters dead, although no evidence was ever produced to justify his claim.<ref>{{cite web |url=http://www.france24.com/en/20141224-two-killed-nicaragua-canal-protests/ |title=Two killed in Nicaragua canal protest |publisher=[[France 24]] |date=24 December 2014 |access-date=2015-01-13}}</ref> The CIDH, Nicaragua's Human Rights Commission, has strongly criticized the government for not looking into the project's effect on citizens, amid claims that citizens were not involved in decision-making.<ref>{{cite web |author=Cecilia Medal Salaverry |publisher=Development and Cooperation (D+C) |date=14 August 2015 |url=http://www.dandc.eu/en/article/building-nicaragua-canal-nicaraguas-government-ignoring-concerns-its-own-people |title=Nicaragua Canal: A violation of civil liberties |access-date=14 January 2016}}</ref> The British firm ERM, who carried out the Environmental Impact Assessment, claims it held consultations with around 6,000&nbsp;people in the communities along its planned route,<ref name=ReutersPerry2017>{{cite web |url=http://news.trust.org/item/20171201092333-6asue |title=Can a coast-to-coast canal solve Nicaragua's poverty problem? |date=1 December 2017 |agency=Thomson [[Reuters]] Foundation News |access-date=8 October 2014}}</ref> and estimated that the property of about 30,000&nbsp;people would be affected.<ref name=ReutersPerry2017/> National opinion polls show that support for the project is about 70%.<ref name=ReutersPerry2017/>

=== Reported end to the canal project ===
Investor Wang had financial setbacks unrelated to the Nicaragua project, losing 80% of his net worth during the [[2015–16 Chinese stock market turbulence]].<ref name=Nytimes2016-04-03/> In March&nbsp;2017, the ''[[Havana Times]]'' reported that the public relations agency handling Wang's interests in Nicaragua had been let go, in absence of any developments on the project to report, and Wang had not been in the country in more than two years.<ref>{{cite news |url=https://www.havanatimes.org/?p=124458 |title=Nicaragua Canal project owners reduce presence to a minimum |website=[[Havana Times]] |date=30 March 2017}}</ref> In May&nbsp;2017, the ''[[PanAm Post]]'' indicated that "no concrete action has been taken to begin the project" and suggested that the project was either "paralyzed, or nonexistent."<ref name=peralta>{{cite news | first=Adriana | last=Peralta | date=May 8, 2017 | title=Four years later, China-backed Nicaragua Canal struggles to take off the ground | publisher=[[PanAm Post]] | url=https://panampost.com/adriana-peralta/2017/05/08/four-years-later-china-backed-nicaragua-canal-struggles-to-take-off-the-ground/ | url-status=dead | access-date=8 May 2017 |archive-url=https://web.archive.org/web/20170823160624/https://panampost.com/adriana-peralta/2017/05/08/four-years-later-china-backed-nicaragua-canal-struggles-to-take-off-the-ground/ |archive-date=23 August 2017}}</ref> In September&nbsp;2017 [[Agence France-Presse]] reported that the work had been "pushed back indefinitely," although the government renewed the project's environmental permit in April&nbsp;2017.<ref>{{cite news |title=Nicaragua renews environmental permit for Chinese canal project |date=7 September 2017 |url=https://phys.org/news/2017-09-nicaragua-renews-environmental-chinese-canal.html}}</ref>

In February&nbsp;2018, Manuel Coronel Kautz, head of Interoceanic Grand Canal Authority of Nicaragua, told Agence France-Presse work on the canal was still ongoing, but by that point analysts and activists widely viewed the canal project as defunct, with China having shifted its investment focus to Panama,<ref name=cancellation/><ref name=Interest/> the main competitor to a Nicaraguan canal. Following financial difficulties, HKND finally closed its offices in April&nbsp;2018, leaving no forwarding address or telephone numbers to be reached.<ref name=Bloomberg2018/>

Absent a 60% vote to revoke the legislation,<ref name=cancellation/> HKND maintains the legal concessions established by the 2013 law, including for other infrastructures projects in Nicaragua, including ports, roads, railway and an airport.<ref name=":0"/>

In November 2024 the Nicaraguan Canal idea has been revived.<ref>[https://www.msn.com/en-us/money/markets/nicaragua-unveils-new-canal-route-in-bid-to-rival-panama/ar-AA1urKRA?ocid=msedgdhp&pc=U531&cvid=5ba86fbc05f948028621e1be58c60d48&ei=54 nicaragua-unveils-new-canal-route-in-bid-to-rival-panama 20 November 2024]</ref>

== Description ==
[[File:Lake Nicaragua.jpg|right| thumb| [[Lake Nicaragua]] would have been the center segment of the Nicaragua Canal]]

The construction company provided a project description for review on open source, dated December 2014.<ref>{{Cite web |title=Nicaragua Canal Project Description |url=http://hknd-group.com/upload/pdf/20150105/Nicaragua_Canal_Project_Description_EN.pdf |access-date=2015-04-16 |url-status=usurped |archive-url=https://web.archive.org/web/20150110182954/http://hknd-group.com/upload/pdf/20150105/Nicaragua_Canal_Project_Description_EN.pdf |archive-date=2015-01-10}}</ref> The canal as planned would have been {{convert|259.4|km}} and would have three sections. The West Canal runs from Brito on the Pacific Ocean up the [[Rio Brito]] valley, crosses the [[continental divide]], and after passing through the Rio Las Lajas valley enters Lake Nicaragua; its length would be {{convert|25.9|km}}. The Lake Nicaragua section measures {{convert|106.8|km|abbr=on}} and runs from {{convert|4|km|abbr=on}} south of San Jorge to {{convert|8|km|abbr=on}} south of San Miguelito. The East Canal would be the longest section at {{convert|126.7|km|abbr=on}} and would be built along the Rio Tule valley through the Caribbean highland to the [[Rio Punta Gorda]] valley to meet the Caribbean Sea. A channel would have to be dug in the bottom of Lake Nicaragua, as it is not deep enough for large vessels to transit the canal.<ref name=Nytimes2016-04-03/>

Both the West Canal and the East Canal would each have one [[lock (water transport)|lock]] with 3 consecutive chambers to raise ships to the level of Lake Nicaragua, which has an average water elevation of {{cvt|31.3|m|ft}}, with a range between {{cvt|30.2|and|33.0|m|ft}}. The western Brito Lock would be {{convert|14.5|km|abbr=on}} inland from the Pacific, and the eastern Camilo Lock would be {{convert|13.7|km|abbr=on}} inland from the Caribbean Sea. The dimensions of each of the locks' chambers are {{convert|520|m|ft|0|abbr=on}} long, {{convert|75|m|ft|0|abbr=on}} wide, and {{convert|27.6|m|ft|0|abbr=on}} threshold depth. As locks generally define the limit on the size of ships that can be handled, the Nicaragua Canal would have allowed passage for larger ships than those that pass through the Panama Canal. For comparison the Panama Canal, after its [[Panama Canal expansion project|2016 expansion]], is only {{convert|427|m|ft|0|abbr=on}} long, {{convert|55|m|ft|0|abbr=on}} wide, and {{convert|18.3|m|ft|0|abbr=on}} deep.

No water from Lake Nicaragua was planned to be used to flood the locks; water would have come from local rivers and recycling using water-saving basins. The Camilo lock would have been built adjacent to a new dam of the upper Punta Gorda River that creates a reservoir. This Atlanta Reservoir (or Lake Atlanta) would have a surface area of {{cvt|395|km2|mi2}}. West of the Atlanta reservoir, the Rio Agua Zarca would have been dammed to create a second reservoir. This reservoir would have had a surface area of {{cvt|48.5|km2|mi2}} and hold {{cvt|1100|e6L|e6USgal}}. A [[hydropower]] facility would be built at the dam and would have generated over 10&nbsp;megawatts of power to be used for Camilo Lock operations. Both locks would also be connected to the country's power grid and have back-up generator facilities. It was estimated that each lock would have used about 9&nbsp;megawatts of power.

At each oceanic canal entrance, breakwaters and port facilities would have been constructed. The Pacific port would be named '''Brito Port''' and the Caribbean one '''Aguila Port'''. Initially these two ports would have helped during construction and later become international ports. Their design capacity was 1.68&nbsp;million [[Twenty-foot equivalent unit|TEU]]/year and 2.5&nbsp;million TEU/year, respectively. Existing port facilities at [[Corinto (Nicaragua)|Corinto]] and [[Bluefields]] would have been improved to allow for shipment of material to the entry ports under construction. Fuel storage sites would be placed at the two port sites. Four [[lighthouse]]s would be constructed at the entrances to the East and West Canals. In addition, the channel entrance on sea would have been be marked on both sides with a large sailing [[buoy]] about {{convert|2|mi|km|0|order=flip}} offshore and 2 light buoys would mark the passage through Lake Nicaragua.

A [[free trade zone]] with commercial facilities as well as tourist hotels and an [[international airport]] at [[Rivas, Nicaragua|Rivas]] were planned to be built when canal construction was advanced.

Appropriate road improvements were planned. The [[Pan-American Highway]] would have crossed the canal via a bridge. Nicaragua Route 25 ([[Acoyapa]]-[[San Carlos, Río San Juan|San Carlos]]) on the eastern side of Lake Nicaragua would have gotten a [[ferry]] service. Both ports would get public road connections. HKND planned to construct a private gravel maintenance road on both sides of the canal.

The estimate for the workforce in 2020 was 3,700&nbsp;people, and 12,700 in 2050 when traffic had increased.

Transit time would have been about 30&nbsp;hours. It was projected that by 2020 3,576&nbsp;ships would have transited the canal annually. The transit rate was expected to increase to 4,138 by 2030, and to 5,097 by 2050. For comparison, the Panama Canal handled 12,855&nbsp;transits in 2009.<ref name="annualreport2009">{{cite web |url=http://www.pancanal.com/eng/general/reporte-anual/2009/pdf/InformePDFingles.pdf |title=ACP 2009 Annual Report |publisher=Panama Canal Authority |year=2009 |access-date=2015-01-22 |archive-date=3 November 2011 |archive-url=https://web.archive.org/web/20111103054620/http://www.pancanal.com/eng/general/reporte-anual/2009/pdf/InformePDFingles.pdf |url-status=dead }}</ref>

== Construction ==
No significant construction took place.<ref>{{Cite news |url=https://www.theguardian.com/world/2016/nov/24/nicaragua-canal-interoceanic-preparations |title=Nicaragua canal: In a sleepy Pacific port, something stirs |last=Watts |first=Jonathan |date=2016-11-24 |newspaper=[[The Guardian]] |access-date=2017-03-09 |language=en-GB |issn=0261-3077}}</ref> No "major works" such as dredging were planned to take place until after a Pacific Ocean wharf was built.<ref name="Bloomberg-2016-03-17"/>

The apparent lack of experience of Wang and his HKND in large-scale engineering was cited as a risk.<ref name=Bloomberg-2013-06-25/><ref>
{{cite web
 | title= Canal construction to generate strong opposition
 | publisher= BMI Research
 | website= Business Monitor
 | date= December 28, 2014
 | url= http://www.businessmonitor.com/news-and-views/canal-construction-to-generate-strong-opposition
 | access-date= January 13, 2015
}}
</ref>

On December 22, 2014, Wang announced construction started in [[Rivas, Nicaragua]]. Wang spoke during the starting ceremony of the first works of the Interoceanic Grand Canal in Brito town. Construction of the new waterway would have been by HKND Group—Hong Kong–based HK Nicaragua Canal Development Investment Co Ltd., which is controlled by Wang.<ref>{{cite web |url=http://news.ifeng.com/a/20141223/42776279_0.shtml |script-title=zh:尼加拉瓜大运河开工中国公司拥有100年运营权 |work=[[Ifeng]] News |access-date=23 December 2014 | language = zh-hans}}</ref> According to HKND's announced plans in 2015, the project entailed the canal's development and building, and supporting infrastructure.<ref name=project>{{cite web |url=http://hknd-group.com/upload/pdf/20150105/Nicaragua_Canal_Project_Description_EN.pdf |title=Nicaragua Canal Project Description |language=en |website=hknd-group.com |publisher=[[HK Nicaragua Canal Development Investment]] Group |access-date=25 March 2019 |archive-url=https://web.archive.org/web/20150110182954/http://hknd-group.com/upload/pdf/20150105/Nicaragua_Canal_Project_Description_EN.pdf |archive-date=10 January 2015 |url-status=usurped}}</ref> There would have been four main phases. The preconstruction phase included getting permits, acquiring land and machinery, and finalizing designs and plans. The early construction phase, started in December&nbsp;2014, lasted through September 2015; it secured access to construction sites, but it did not provide the critical infrastructure nor mobilize the workforce. During the construction phase from September&nbsp;2015 to March&nbsp;2020, the canal would have been dug and the locks built along with accompanying infrastructure. The commissioning phase projected from April&nbsp;2020 to June&nbsp;2020 included lock testing and lock and tug boat operator training.

HKND described the project as the largest civil earth-moving operation in history. Most of this would have consisted of dry [[earthworks (engineering)|excavation]] to form the canal with an estimate of 4,019&nbsp;[[million cubic metre|MCM]] of rock and soil. There would have been 739&nbsp;MCM of freshwater [[dredging]] (Lake Nicaragua) and 241&nbsp;MCM of marine dredging. Marine dredging of the oceanic access canal would be required on the Pacific side for {{cvt|1.7|km|mi}} and on the Caribbean Sea side for {{cvt|14.4|km|mi}}. Disposal of excavation material would have been done along the canal in designated disposal areas typically within {{cvt|3|km|mi}} of the canal.

Two [[concrete plant]]s and a [[steel plant]] were planned to support the project. While cement would have likely been imported, [[construction aggregate]] would have come from local [[quarries]] near the two locks.

HKND estimates that about 50,000&nbsp;people would be employed during the five-year construction, about half of them from Nicaragua, 25% from China, and the remainder from various other countries. 1,400&nbsp;workers would be in office or administrative positions and the rest in the field. The management offices would be rented or purchased near Rivas. Workers would live in one of nine camps, which besides food and shelter would also provide health care and security. These are “closed” camps — that is, workers cannot leave the camp unless part of an organized activity. The work schedule calls for 12&nbsp;hour shifts for 7&nbsp;days a week. Domestic workers work two weeks and get one week off, while foreign workers are 6&nbsp;weeks on and get 2&nbsp;weeks off (management) or 22&nbsp;weeks on, 4&nbsp;weeks off ([[blue collar]] workers).

On 2&nbsp;September 2015, Pang Wai Kwok (executive VP of HKND Group) was interviewed by Nicaraguan journalist Carlos Solis and said up to 3,000&nbsp;people might be employed on the canal project within the year. However, the labor force depends on the contract bid's winner and Kwok said anyone in the world is eligible to work on the canal.<ref>{{cite web |url=http://hknd-group.com/portal.php?mod=view&aid=232 |archive-url=https://web.archive.org/web/20150928212634/http://hknd-group.com/portal.php?mod=view&aid=232 |url-status=usurped |archive-date=28 September 2015 |title=El Nuevo Diario: "The fall in oil prices has benefited the Canal" |publisher=[[HK Nicaragua Canal Development Investment]] Group |access-date=2015-09-27}}</ref><ref>{{cite news |url=http://www.elnuevodiario.com.ni/nacionales/369243-caida-precio-petroleo-ha-beneficiado-canal/ |title=Entrevista "La caída del precio del petróleo ha beneficiado al canal" |newspaper=El Nuevo Diario |access-date=2015-09-27}}</ref>

=== Financing ===
Project costs were estimated in the region of $40&nbsp;billion to $50&nbsp;billion.<ref name=hknd-background/><ref name=bbc>{{cite web |url=https://www.bbc.com/news/world-latin-america-30584559 |title=Nicaragua launches construction of inter-oceanic canal |publisher=[[BBC]] |date=December 23, 2014 |access-date=January 9, 2015}}</ref><ref name=scmp>{{cite news |url=http://www.scmp.com/news/world/article/1669500/has-beijing-backed-us50bn-canal-project-nicaragua-funding-mystery |title=Has Beijing backed a US$50bn canal project in Nicaragua? Funding mystery continues |newspaper=[[South China Morning Post]] |date=December 28, 2014 |access-date=January 13, 2015}}</ref> Beside private money provided by Wang at the start-up, further influx of financial support was expected from investors. An IPO was reported to be in preparation by the end of 2014.<ref name=reuters14>{{cite news |url=https://www.reuters.com/article/nicaragua-canal-idUSL1N0U719820141223 |title=Nicaragua canal developer HKND plans IPO – CEO |work=[[Reuters]] |date=December 23, 2013 |access-date=January 7, 2015}}</ref> [[XCMG]], a state-owned Chinese construction company would have provided machinery and taken 1.5% to 3% of HKND shares in return.<ref name=miller>{{cite news |url=https://www.reuters.com/article/us-china-canal-insight-idUSBREA4309E20140504 |first=Matthew |last=Miller |title=China's 'ordinary' billionaire behind grand Nicaragua canal plan |work=[[Reuters]] |date=4 May 2014 |access-date=January 9, 2015}}</ref>

By the end of 2014, no major investors had been named. There had been speculation that the [[Chinese government]] would provide financial backing for the project, but China, as well as Wang, denied this.<ref name=ibt2014/><ref name=scmp/> Wang lost nearly 85% of his wealth during the [[2015 Chinese stock market crash]], according to the [[Bloomberg Billionaires Index]].<ref>{{cite web |url=http://www.globalconstructionreview.com/news/wangs-bi7ll7i7on7s-slashed-stock-fall/#read |title=GCR - News - Wang's billions slashed by stock fall, raising doubts over Nicaragua canal |work=globalconstructionreview.com|date=2 October 2015 }}</ref> In addition, Wang has had a string of setbacks for projects around the world since 2014.<ref>{{cite news |url=https://www.bloomberg.com/news/articles/2017-11-27/china-s-unlucky-tycoon-the-canal-madman-keeps-finding-trouble |title=China's unlucky tycoon: The 'canal madman' keeps finding trouble |first1=Blake |last1=Schmidt |first2=Pei Yi |last2=Mak |website=Bloomberg |date=27 November 2017}}</ref> The economic development potential for the canal project is relatively measurable with Panama; however, the World Bank describes the country of Nicaragua as the second poorest in Latin America and the Caribbean.<ref>{{cite web |title=Nicaragua |series=Data |publisher=[[The World Bank]] |website=data.worldbank.org |url=http://data.worldbank.org/country/nicaragua |access-date=2015-11-24}}</ref> [[The World Bank]] has compiled a data list of projects that the impoverished nation has on record and the majority of the efforts are geared towards infrastructure and agricultural needs, but there is no explicit title project that would support the canal line of effort.<ref>{{cite report |title=Nicaragua |series=Projects & Operations - all projects |publisher=[[The World Bank]] |url = http://www.worldbank.org/projects/search?lang=en&searchTerm=&tab=map&countryshortname_exact=Nicaragua |website = www.worldbank.org |access-date = 2015-11-24}}</ref>

Wang admitted that the project has financial, political, and engineering risks.<ref name=Bloomberg-2013-06-25/> With the high cost of the project that independently has been estimated to be about $100&nbsp;billion,<ref name=sf2014/> it was not fully funded. The project was expected in 2014 to be completed in 2020, but [[Stratfor]], an analyst agency, stated then that was an "unrealistic goal."<ref name=sf2014/>

While the [[Central Bank of Nicaragua|Nicaraguan National Bank]] reserves served as collateral on the part of Nicaragua, HKND had no such potential liability.<ref name=york>{{cite news |first=Claudia Leon |last=York |title=Canal deal cripples Nicaraguan sovereignty, again: activist |newspaper=South China Morning Post |date=July 11, 2013 |url=http://www.scmp.com/comment/insight-opinion/article/1280186/canal-deal-cripples-nicaraguan-sovereignty-again-activist |access-date=January 9, 2015}}</ref>

== Impact ==

=== Environmental ===
Some of the natural habitat of at least 22&nbsp;endangered species would be destroyed in the construction.<ref name="GUARD2017">{{cite news |last=Lakhani |first=Nina |date=3 August 2017 |title=Amnesty condemns 'campaign of harassment' against Nicaragua canal critics |newspaper=[[The Guardian]] |url=https://www.theguardian.com/world/2017/aug/03/daniel-ortega-nicaragua-canal-human-rights-violation |access-date=22 August 2017}}</ref> Another major environmental concern is the project's impact on [[Lake Nicaragua]], the largest source of freshwater in Nicaragua.<ref name=ibt2014/> An [[oil spill]] would have serious and lasting consequences. Other problems include the possibility of dredging bringing up toxic sediments, the disruption of migration patterns of animal species, and the potential to introduce invasive species to the lake.<ref>{{cite news |last=Miller |first=Greg |date=26 February 2014 |title=Why the plan to dig a canal across Nicaragua could be a very bad idea |magazine=Wired |series=Wired Science |url=https://www.wired.com/2014/02/nicaragua-canal/ |access-date=2016-09-23}}</ref> Environmental studies had not been released by HKND when the project officially started in December&nbsp;2014. The Nicaraguan Academy of Sciences noted that hundreds of thousands of hectares of pristine forests and wetlands would be destroyed and pointed out that the environmental study performed for the canal was not independent.<ref>{{cite journal |first1=Jeffrey |last1=McCrary |first2=Aldo |last2=Hernandez |first3=Octavio |last3=Saldana |first4=Ricardo |last4=Rueda |year=2015 |title=Biodiversity on canal route already at risk |journal=[[Nature (journal)|Nature]] |volume=525 |issue=7567 |page=33 |doi=10.1038/525033b |pmid=26333461 |s2cid=45851150 |url=http://www.gaianicaragua.org/McCrary_Nature_Biodiversity_canal.pdf |access-date=10 February 2016 |url-status=dead |archive-url=https://web.archive.org/web/20160217025611/http://www.gaianicaragua.org/McCrary_Nature_Biodiversity_canal.pdf |archive-date=17 February 2016 }}</ref>

President [[Daniel Ortega]] stated that he is "not concerned about harming the lake because it is already contaminated."<ref>{{cite news |url=http://wunc.org/post/chinas-american-canal-could-sacrifice-nicaraguas-great-lake#stream/0 |title=China's American canal could sacrifice Nicaragua's great lake |first=Sara |last=van Note |publisher=North Carolina Public Radio |date=25 May 2018}}</ref> Protesters fear that the canal would bring massive environmental destruction to Lake Nicaragua and the Atlantic Autonomous Regions.<ref>{{cite news |first=Joshua |last=Partlow |date=February 4, 2015 |title=Can a Chinese billionaire build a canal across Nicaragua? |newspaper=[[The Washington Post]] |url=https://www.washingtonpost.com/world/the_americas/can-a-chinese-billionaire-build-a-canal-across-nicaragua/2015/02/03/e9cf3482-9aa5-11e4-86a3-1b56f64925f6_story.html}}</ref> 400,000&nbsp;hectares of [[tropical rain forest]] and [[wetland]]s would be destroyed.<ref>{{cite report |title=e97-art-2 |series=Revista-Encuentro |website=uca.edu.ni |url=http://www.uca.edu.ni/2/images/Revista-Encuentro/Revistas/e97/e97-art-2.pdf}}{{full citation needed|date=June 2021}}</ref> It would also encroach upon the habitats of animals such as [[Baird's tapir]], the [[spider monkey]], and the [[jaguar]].<ref>{{cite journal |last1=Meyer |first1=Axel |last2=Huete-Pérez |first2=Jorge A. |date=19 February 2014 |title=Conservation: Nicaragua Canal could wreak environmental ruin |journal=[[Nature (journal)|Nature]] |volume=506 |issue=7488 |pages=287–289 |doi=10.1038/506287a |doi-access=free |pmid=24558657}}</ref>

==== Safety ====
Richard Condit, from the [[Smithsonian Tropical Research Institute]], believes that the project could be used as leverage for forest protection in a country that currently lacks "institutional capacity" to meet conservation needs.<ref>{{cite journal |first=Richard |last=Condit |date=2015-07-27 |title=Extracting environmental benefits from a new canal in Nicaragua: Lessons from Panama |journal=[[PLoS Biol]] |volume=13 |issue=7 |page=e1002208 |pmc=4516262 |pmid=26214182 |doi=10.1371/journal.pbio.1002208 |doi-access=free }}</ref> A Canadian pilot was the first fatality during the canal project.<ref>{{cite web |title=A Quebecer dies in a plane crash in Nicaragua |website=stopru.org |url=http://stopru.org/a-quebecer-dies-in-a-plane-crash-in-nicaragua |access-date=2015-10-23 |url-status=dead |archive-url=https://web.archive.org/web/20151011224837/http://stopru.org/a-quebecer-dies-in-a-plane-crash-in-nicaragua |archive-date=2015-10-11}}</ref> The pilot was flying alone on the western side of Lake Nicaragua during an aerial survey.

==== Sustainability ====
The survey site was on the same side as NicarAgua–Dulce, which is the only [[ecotourism]] group in Nicaragua that is affiliated with [[The International Ecotourism Society]], and it is located north of the proposed canal site.<ref>{{cite web |title=Nicaragua Dulce Ecotourism Granada Nicaragua: Ecotours in Nicaragua |url=http://www.nicaraguadulce-ecotourism.com/ |website=www.nicaraguadulce-ecotourism.com |access-date=2015-10-23}}</ref> Falling in line with ecotourism, [[Nicaragua's Ministry of Environment and Natural Resources]] has promoted formal workshops at each level of education (primary, secondary, and post-secondary); however, there is no curriculum relevant to the pending canal project.<ref>{{Cite web |title=Educación Ambiental |website=www.marena.gob.ni |url=http://www.marena.gob.ni/index.php/areas-tematicas/1439-educacion-ambiental#%25C3%25A1reas-de-trabajo |access-date=2015-10-23}}</ref> The American-led Foundation for Sustainable Development is another partner that provides training initiatives to Nicaraguans that cannot access formal education. One of FSD's support sites is located at [[Tola, Rivas|Tola]], which is within close proximity of the proposed Brito–Pacific canal opening.<ref>{{cite web |title=Nicaragua |publisher=Foundation for Sustainable Development, International |website=www.fsdinternational.org |url=http://www.fsdinternational.org/country/nicaragua |access-date=2015-10-23}}</ref>

=== Economic ===
As the original [[Panama Canal]] still has capacity for [[Panamax]]-sized shipping and Panama has completed its [[Panama Canal expansion project]], adding more capacity and allowing transit for even larger [[Panamax#Neopanamax|New Panamax]] size ships, projections for the Nicaragua Canal's traffic may be optimistic.<ref>{{cite news |first=Greg |last=Miller |date=26 February 2014 |title=Why the plan to dig a canal across Nicaragua could be a very bad idea |magazine=Wired  |url=https://www.wired.com/2014/02/nicaragua-canal/}}</ref><ref>{{cite news |last=Costantini |first=Peter |title=What happened to the Nicaragua Canal project? |website=[[Havana Times]] |location=Cuba |date=29 June 2016 |url=http://www.havanatimes.org/?p=119684 |access-date=2016-07-27}}</ref> While the proposed Nicaragua Canal would be wide enough to accommodate [[Triple E-class container ship|Triple E class]] mega container ships, which are too wide for the expanded Panama Canal, few ports are able to accommodate these ships at the present time. Further, a coast-to-coast [[railway]] line may be built by China in [[Honduras]] and could affect use of the Nicaragua Canal.<ref name=Bloomberg-2013-06-25/><ref>{{cite web |first=Rebecca |last=Conan |date=June 21, 2013 |title=Chinese firm to develop US$20bn Panama Canal alternative in Honduras |publisher=BN Americas |url=http://www.bnamericas.com/news/infrastructure/chinese-firm-to-develop-us20bn-panama-canal-alternative-in-honduras1 |access-date=January 17, 2015}}</ref> Also, North American overland shipping through Pacific ports in Mexico and the United States will compete in the traffic between Asia and the U.S. east coast. The collective effect of the above is that competition may undermine the Nicaragua Canal's economic viability if it were ever built.<ref name=sf2014/> On the other hand, the combined effect of climate change and poor water-management of the 2016 [[Panama Canal]] expansion has resulted in severe bottlenecks which are expected to be exacerbated by future drought conditions. With better water management, and the ability to accommodate dramatically larger vessels, the Nicaragua Canal could supplant other freight options over the next 50 years. 

The canal would affect neighboring economies, like Honduras and El Salvador, as they are part of the commercial treaty known as the [[Northern Triangle of Central America]] (Triángulo Norte de Centroamérica).<ref>{{cite news |title=The dragon and the gringo |newspaper=[[The Economist]] |issn=0013-0613 |url=https://www.economist.com/news/americas/21639549-latin-americas-shifting-geopolitics-dragon-and-gringo |access-date=2015-11-27}}</ref><ref>{{Cite web |title=SICE: Novedades en materia de política comercial: Centroamérica - México |website=www.sice.oas.org |url=http://www.sice.oas.org/TPD/CACM_MEX/CACM_MEX_s.asp |access-date=2015-11-27}}</ref> The [[Gross domestic product|GDP]] of each nation would be influenced by expanded export / import operations and trade cooperation through agencies like the promotion authority in El Salvador.<ref>{{cite web |url=http://www.proesa.gob.sv/institution |title=Institution |website=proesa.gob.sv}}</ref>

=== Social ===
According to the official Environmental Impact Assessment carried out by ERM, the canal would require the relocation of around 30,000&nbsp;people.<ref name=ReutersPerry2017/> However, according to human rights group [[Amnesty International]] it would "forcibly displace an estimated 120,000&nbsp;people, including Rama and Creole communities, from protected indigenous territories on the Caribbean coast." The report claims that communities established in proposed canal area have been visited by foreigners, guarded by Nicaraguan authorities, measuring the lands of the inhabitants, and that legislation passed by the Ortega government "authorizes HKND to expropriate whatever land it wants, while denying displaced families the right to appeal." Amnesty International goes on to say that "...excessive forces and unjust arrests have been performed by Nicaraguan officials".<ref name="GUARD2017" /> The Nicaraguan government's 2015 report on the canal counters that, while people will be moved from their current villages, "The Nicaraguan government and HKND will guarantee that persons and families on the route of the canal's construction will have living conditions ''superior to'' those they currently have."{{citation needed|date=April 2019}}

== See also ==
{{Portal|Nicaragua|Hong Kong}}
* [[Panama Canal]]
* [[Saint Lawrence Seaway]]
* [[Suez Canal]]
*[[Istanbul Canal]]
* [[Tehuantepec Route]]
*[[Thai Canal]]
*[[Sulawesi Canal]]

== References ==
{{reflist|25em|refs=

<ref name=Nytimes2016-04-03>
{{cite news
 |first=Suzanne |last=Daley
 |date=2016-04-03
 |title=Lost in Nicaragua, a Chinese Tycoon's Canal Project
 |newspaper=[[The New York Times]]
 |page=A4
 |url=https://www.nytimes.com/2016/04/04/world/americas/nicaragua-canal-chinese-tycoon.html
 |access-date=2016-04-04
 |quote=President Daniel Ortega has not talked about the canal in public for months. And there are no visible signs of progress. Cows graze in the field where Mr.&nbsp;Wang officially began the project.
}}
</ref>

<ref name=TorStar2014-07-14>
{{cite news
 |title=Nicaragua-Chinese partnership announces planned route for proposed inter-oceanic canal
 |newspaper=[[Toronto Star]]
 |author=[[Oakland Ross]]
 |date=2014-07-14
 |url=https://www.thestar.com/news/the_world_daily/2014/07/nicaragua_chinese_partnership_announces_planned_route_for_proposed_inter_oceanic_canal.html
 |access-date=  |url-status=live
 |archive-url=https://web.archive.org/web/20140903184819/http://www.thestar.com/news/the_world_daily/2014/07/nicaragua_chinese_partnership_announces_planned_route_for_proposed_inter_oceanic_canal.html
 |archive-date=2014-09-03
 |quote=The eastern portion of the channel's length will include the construction of a {{convert|400|sqkm|mi2|adj=on}} lake, according to Chinese engineer Dong Yung Song. As a result, he said, the canal's construction will not reduce the depth of Lake Nicaragua itself.
}}
</ref>

}} <!-- end "refs=" -->

== Further reading ==
* {{cite journal
 |url=http://shfg.org/shfg/wp-content/uploads/2010/07/8-Brodhead1.pdf
 |last=Brodhead
 |first=Michael J.
 |date=January 2012
 |title='A Wet, Nasty Job': Army Engineers and the Nicaragua Canal Survey of 1929–1931
 |journal=Federal History
 |issue=4
 |pages=111–130
 |access-date=2012-01-24
 |archive-date=2014-07-14
 |archive-url=https://web.archive.org/web/20140714125526/http://shfg.org/shfg/wp-content/uploads/2010/07/8-Brodhead1.pdf
 |url-status=dead
 }}
* {{cite magazine
 |last=Howard |first=Brian Clark
 |publisher=[[National Geographic Society]]
 |magazine=National Geographic magazine
 |date=20 February 2014
 |title=A planned rival to the Panama Canal carries environmental consequences
 |url=http://news.nationalgeographic.com/news/2014/02/140220-nicaraguan-canal-environment-conservation/?google_editors_picks=true
|archive-url=https://web.archive.org/web/20140301214212/http://news.nationalgeographic.com/news/2014/02/140220-nicaraguan-canal-environment-conservation/?google_editors_picks=true
|url-status=dead
|archive-date=1 March 2014
}}
* {{cite report
 |author-link=Borislav Tsekov |last=Tsekov |first=Borislav
 |publisher=[[Institute of Modern Politics]]
 |date=6 January 2015
 |title=About Nicaragua Canal, geopolitics and south stream pipeline
 |url=http://www.modernpolitics.org/wp-content/uploads/analyses-nicaragua-canal.pdf
}}

== External links ==
{{Commons and category}}
* {{cite news
 |title=Gran Canal Interoceanico de Nicaragua
 |trans-title=[The] Grand Interoceanic Canal of Nicaragua
 |language=es
 |publisher=La Voz del Sandinismo
 |place=Nicaragua
 |url=http://www.lavozdelsandinismo.com/gran-canal-interoceanico-de-nicaragua/
}}
* {{cite report
 |title=Nicaragua Canal Project Description
 |publisher=HKND
 |date=2015-01-05
 |url=http://hknd-group.com/upload/pdf/20150105
 |url-status=usurped
 |archive-url=https://web.archive.org/web/20150110182954/http://hknd-group.com/upload/pdf/20150105/Nicaragua_Canal_Project_Description_EN.pdf
 |archive-date=2015-01-10
}}<br/>via {{cite web
 |title=HKND Group official webpage
 |url=http://hknd-group.com/
 |access-date=2013-06-07 |url-status=usurped
 |archive-url=https://web.archive.org/web/20141217061722/http://hknd-group.com/
 |archive-date=2014-12-17
}}

{{Coord|11.5|-85.0|scale:3000000|display=title}}
{{Nicaragua topics}}
{{Authority control}}

[[Category:Canals in Nicaragua]]
[[Category:Banana Wars]]
[[Category:Proposed buildings and structures in North America]]
[[Category:Economy of Nicaragua]]
[[Category:Politics of Nicaragua]]
[[Category:Lake Nicaragua]]
[[Category:Proposed canals]]
[[Category:Abandoned canal projects]]
[[Category:Environmental controversies]]