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Nicaragua Canal Faces Early Setbacks

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Work on the proposed Nicaragua Canal has been delayed after the Hong Kong developer who holds the concession to build and operate the canal (HKND) was unable to access one of the proposed routes.

PTI previously reported that canal was supposed to begin construction on December 22, 2014 and seeks to link the Atlantic and Pacific Oceans in order to rival the Panama Canal.

According to the BBC, the Nicaraguan government claims that the project will finally lift Nicaragua out of poverty.

Nicaragua's Vice-President Omar Halleslevens said: “With this great canal, Nicaragua expects to move 5% of the world's commerce that moves by sea, which will bring great economic benefits and double the GDP.''

However, the Journal of Commerce reported Protest Leader Danilo Lrio as saying that the canal will not have any benefit on the people of Nicaragua and the compensation offered in place of its resources is ‘ridiculous’.

Critics also fear that the canal will have a major environmental impact on Nicaragua, especially Lake Nicaragua, which provides a clean source of water for local people.

Some have even questioned HKND Group leader Wang Jing’s lack of experience which would be needed to develop or finance big infrastructure projects such as this.

The US$50 billion canal would start from the mouth of the Brito River on the Pacific side and on to Lake Nicaragua, and end in the Punto Gorda River in the Caribbean.

Nicaragua Canal Faces Early Setbacks. (Source: BBC)

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