Nicaragua Canal Back on Track?

A deal has been struck between Hong Kong Nicaragua Canal Development (HKND) group and UK-based engineering company BMT group’s Asia Pacific and BMT ARGOSS business units to allow BMT to carry out marine and port assessments on the US$50 billion Nicaragua Canal project, according to Trade Winds.

Richard Colwill, Managing Director at BMT Asia Pacific, said: “Our study will seek to articulate a solution that minimises canal excavation while ensuring adequate canal capacity and safety.

“A crucial part of that solution involves sophisticated navigation and transport simulation, which will set the basis for identifying a design that balances excavation capex with operational safety, efficiency and capacity.”

The construction of the project has recently been delayed again, this time to 2016, with HKND making a statement that it needed more time to develop the project.

There were also concerns that the project would not be financed due to HKND leader Wan Jing losing around 85% of his personal fortune in the Chinese stock market crash.

Despite these issues, it appears that the project could make a start in the near future, after receiving approval from the Nicaragua Grand Interoceanic Canal Commission to begin construction.

The project also received approval from the Nicaraguan community on the condition that one of its routes was diverted 500 metres from the town of El Tule.