From the Profe: Nicaragua Canal Could Be Economic Boon to Nicaragua

The Nicaraguan Canal is a proposal to connect the Carribean Sea and Atlantic Ocean with the Pacific Ocean by way of Nicaragua. Said canal would go by river until Lake Nicaragua and cross through Rivas to reach the Pacific. The idea of the construction of a canal that takes advantage of the course of the Rio San Juan dates back to the colonial period because the river begins in the lake and lets out in the Carribean.

On July 3, 2012, the National Assembly of Nicaragua approved with a wide majority a law authorizing the construction of an interoceanic canal between the Carribean and Pacific, a work that will take 10 years and cost as much as 45 billion dollars. This new canal would lead to an increase of transit of cargo ships, would help promote commerce between Latin American and European countries and between China with the Americas, Brazil and Europe by permitting better transit of cargo in less time. This will increase the commercial and navigational importance of the Pacific Ocean in the new century.

The Russian Embassador to Nicaragua, Vladimir Nikolai, reiterated that his country is waiting for the studies of economic viability and environmental impact of the Great Interoceanic Canal of Nicaragua. “WE know that you think that to realize this ambitious project that a Chinese company signed a contract with Nicaragua without authorization and that China signed plans to form a consortium and offer different requests for bids for different parts. Our companies, that have experience in construction of this type, are waiting until the project is defined,” Nikolai told El Nuevo Diaro. “They say that the construction is forecasted to begin in December of this year, so with patience we are waiting. We are waiting to see what opportunities there are here before we give our signatures,” he said.

In addition, the German Ambassador in Managua, Karl Otto Konig, told journalists at the end of a courtesy visit to René Núñez that his country is interested in the studies.

At the same time, Chinese group HKND, the licenseholderof the canal, recently said that the World Bank presented the viability studies of the project and that they hoped to begin constructing in December with an approximate cost of at least 40 billion dollars, according to the available data. On its website, the Chinese firmed stated on Monday that it presented the project before the World Bank on April 23 in Washington in response to an invitation from the financial organization.

The World Bank resceived information from the “development of viability studies, the design of the construction, the impacts to the exonomy and environment of Nicaragua and neighboring countries, as well as the influence on world commerce and the leaders of worldwide maritime commerce.”