On June 13, 2013, the President of Nicaragua, President Ortega, and the chairman of HKND Group, Wang Jing, signed an agreement given HKND Group the exclusive rights to construct and manage the Nicaraguan canal and associated projects for 50 years.
The idea of creating a canal through Nicaragua is not new. The earliest plans of creating a canal through Nicaragua originated as early as the 1500s by the Spanish. Dreams of creating a canal continued until the present day but seemed to temporarily halt because of the potential canal’s environmental threats. Currently, Nicaragua and HKND Group are assessing the technological and economic feasibility of constructing the canal. The two parties are also assessing the potential environmental, social, and regional implications of various routes. A HKND spokesman reported that the estimated $40 billion project would be privately funded.
According to the HKND Group, the proposed Nicaragua Canal will help relieve the Panama Canal from the 21st century’s growing global economy. The current Sandinista government has reported that the canal will help Nicaragua’s economic growth and the country’s formal employment within the next four years. The government has further stated that the canal will eradicate poverty in the country.
For more information about the potential Nicaraguan Canal, please refer to these websites: