Americas News
Start of Nicaragua's Panama Canal Alternative Pushed Back Until Late 2016
After receiving the green light to build earlier this month, China's Hong Kong Nicaraguan Development (HKND) is delaying breaking ground on the $50 billion inter-ocean canal across Nicaragua, the Associated Press reports.
Although crews began work on access roads for the project last December, "the construction of locks and the big excavations will start toward the end of 2016," HKND stated on November 24.
The Government of Nicaragua had approved the massive 278-kilometre route, and early in November HKND had received approval for environmental studies of the canal.
HKND said only of the construction delay that "the canal's design is currently being fine-tuned," but some experts have speculated that the canal will never be built due to financial and social concerns.
Under HKND, the project has six components: the canal and locks; two ports; a free trade zone; holiday resorts; an international airport; and roads.
Environmental Resources Management Ltd. had gone on record as stating the project "would significantly benefit the Nicaraguan economy as a result of increased economic production, corporate diversity, and markets; more jobs, increased personal income and spending, improved skills and experience of workers as well as improved transport infrastructure."
However, the company has also noted that the five-year timeline for the canal's construction will create "logistical, procurement and workforce challenges."
