Nicaragua approves $40-bn shipping channel

A Nicaraguan committee approved a proposed route yesterday for a $40- billion shipping channel across the Central American country to compete with the Panama Canal, Reuters reported.

It said the 278-km route from the mouth of the Brito river on the Pacific side to the Punto Gorda river on the Caribbean was approved by a committee of government officials, businessmen and academics.

The route had been proposed by executives from the HK Nicaragua Canal Development Investment Co Ltd (HKND Group).

The Hong Kong-based, HKND group, the project leader, is headed by Chinese lawyer Wang Jing, who also headed the Chinese company Xinwei Telecom Enterprise Group.

Quoting HKND engineer Dong Yunsong, the report said the proposed canal would pass through Lake Nicaragua, Central America's largest lake, and would be between 230 metres and 520 metres (755 feet to 1,706 feet) wide and 27.6 metres (90 feet) deep.

Environmental and social impact studies would still need to be conducted, that could recommend some changes to the plan, but those studies should be finished later this year to allow work to begin by December, according to committee member Telemaco Talavera.

Those opposed to the project have raised concerns over the canal's effect on Lake Nicaragua, an important fresh water source for the country, also over the impact on poor communities, the report said.