Nicaragua Government Approves Proposal for Transoceanic Canal

The centuries-old Nicaraguan dream to construct a shipping transoceanic canal across the country became a step closer to reality on Thursday, as the National Assembly approved a proposal to begin exploratory measures for the project. President Daniel Ortega’s leftist party lent its support to the proposal, and the legislation was passed 61-25 in just a few weeks. The Nicaragua canal, first mooted in 1825, is hoped to provide much needed wealth for the country and secure its importance internationally. The Ortega government has stated that the project will bring thousands of jobs, and ignite an economic boom similar to that experienced by nearby Panama.

The Proposal

The legislation grants a fifty year concession to Chinese owned HK Nicaragua Canal Development Investment Company to explore, build, and operate a canal spanning the width of the nation. Specific details have yet to emerge, but the project is currently estimated to cost more than $40 billion USD, as the proposed route means the canal would be three times the length of the Panama canal. Experts are saying that the Chinese may have a difficult time raising the funds needed, as they will have to convince investors that there is enough shipping volume to support two major canals in the region. Spokespersons from the Nicaragua Canal Development Investment Company, however, maintain that demand is high, and that construction of a second canal in Central America will provide valuable competition and alleviate concerns around the USA dominating the administration of the Panama Canal.

Opposition

The nature of the legislative process and the lack of details in the proposal has caused opposition among much of the Nicaraguan public. Activist groups gathered outside the National Assembly to protest what they see as the selling of Nicaragua’s sovereignty to the highest bidder. Eduardo Montealegre, the leader of the Parliamentary opposition, called the proposal unconstitutional, fraudulent and damaging to the interests of Nicaragua in his speech during the legislative debate. There has also been concern from environmental groups, who say that the freedom given to the Chinese company by the government will result in major detriments to what is a rich and environmentally important area. It currently seems likely that any future canal would have to go through Lake Nicaragua, the largest lake in the country and a major source of fresh water for Nicaragua’s people.