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Work on Nicaraguan Canal Postponed for Up to a Year Printer friendly page Print This
By Staff Writers, teleSUR
teleSUR
Sunday, Nov 29, 2015

The canal would have to cross Lake Nicaragua. | Photo: EFE

The project has been billed as a way for the second poorest country in the Western hemisphere to boost its economy, but environmentalists are concerned.

Various sources confirmed on Friday that the US$50-billion project was not delayed because of a lack of financial resources, but due to the “technical time” needed for an environmental study.

A few days earlier, the Chinese company Hong Kong Nicaragua Development Group (HKND), in charge of building the canal, said that work will not begin before the end 2016—instead of the beginning of 2015 as initially planned.

On the same day, international scientists met in the Nicaraguan capital of Managua in order to analyze the Environmental and Social Impact Assessment (EISA) of the project commissioned by the Nicaraguan government. They concluded that the study was “superficial” and did not meet “international parameters.” The final declaration recommended stopping the project so as to “better analyze quantitatively the impacts and risks, and then take the appropriate measures.”

The Nicaraguan government, which had approved the study on Nov. 5, rejected the conclusions, saying the experts “were not prepared” to offer such a judgment. “People going to such meetings come on invitation, by people who pay them, to provide benchmarks where they are not involved.”

According to the Financial Times, the delays in construction could be related to the financial difficulties that the Chinese funders have experienced since the Chinese stock market crashed in September. Wang Jing, HKND's owner, has invested US$200 million of his fortune in the project. In September, however, the telecommunication magnate lost 85 percent of his wealth.

“The project's financing does not depend on the state of the stock market in China or on Wang Jing's financial position,” said Bill Wild, HKND's chief project adviser, in an email to the Financial Times.

“The canal has not been delayed because of a lack of funds but because of the technical time (for the environmental study),” added Telemaco Talavera, spokesman for Nicaragua's canal commission. “We would be worried if we thought the delay was for financial reasons … but the resources are available.”


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