6 mayo, 2015
Nicaragua has agreed together with the Chinese group HKND that will spend $50 millions to construct a 178 mile canal that will change South Americas economy trying to make Nicaragua its main benefactor opening more opportunities unifying the Pacific and the Atlantic Ocean. The Construction of the canal has already begun but the time estimate for this project will take place during the next five years.
It all took place in July 2012 when the Nicaraguan parliament passed Law 800 which ensured a legal statement for the construction of the Interoceanic Canal (which will last 11 years). Later, the project’s scope was established by the singing of a memorandum of understanding and the Deed of Cooperation between the HKND Group and the Canal Committee.
On the 13th of June of 2013, the Master Concession Agreement was made official by the Nicaraguan parliament with the HKND group; this meant that the HKND group gained the sole rights over the entire project of the Nicaragua Grand Canal (including other related projects) within the next 100 years. On the 14th of July Daniel Ortega and Wang Jing held a conference to officiate the project internationally.
The President of Nicaragua Daniel Ortega also invited Russian companies to collaborate in the construction of the Nicaraguan Canal. Similarly, Venezuela, Brazil and Argentina are willing to cooperate despite the economic crisis affecting their countries and other Asian countries such as South Korea or Japan joined in this partnership. On the other hand countries as Mexico or Panama are completely against the project and for United States the emergence of a new trade route is a challenge and a serious blow to its prestige, basically because United States controls the main sea routes: the Panama Canal, the Suez Canal, as well as the main trade routes that pass through Singapore and Gibraltar.
The main reason why this canal was thought is to into a hub of global trade making a new canal linking the Atlantic and Pacific oceans for supertankers and bulk carriers that are too big for the Panama canal. Taking over some of Panamas business and making Nicaragua more known internationally. Hopefully if everything goes well, the Nicaraguan government will try and bury their poor economy with the wealth the canal is supposed to give back and the Chinese company is hoping for a lot of income in return and more jobs available.
Although everything seems positive there are protests against this project. Those who are against claim that the canal will ruin many natural reserves and protected areas as well as forcing families to leave their homes at certain places. But despite the protests, the Chinese have measured up the land and are making preparations for the construction to begin. And to deal with the situation The HKND is expecting to announce compensation packages over the next few months for the families that are being forced to leave their homes.