Nicaragua Canal

1825

The routes suggested usually ran across Nicaragua, Panama, or the Isthmus of Tehuantepec in Mexico. The history of attempts to build a Nicaragua canal connecting the Caribbean Sea and thus the Atlantic Ocean and the Pacific Ocean goes back at least to 1825 when the Federal Republic of Central America hired surveyors to study a route via Lake Nicaragua, above sea level.

1914

Despite the operation of the Panama Canal, which opened in 1914, interest in a Nicaragua canal has continued.

2006

With emergence of globalization, an increase in commerce and the cost of fuel, and the limitations of the Panama Canal, the concept of a second canal across the American land bridge became more attractive, and in 2006 the president of Nicaragua, Enrique Bolaños, announced an intention to proceed with such a project.

2009

For comparison, the Panama Canal handled 12,855 transits in 2009. == Construction == No significant construction took place.

2012

Even with the Panama Canal expansion project, which began commercial operation to allow modern New Panamax vessels on 26 June 2016, some ships would be too big for the Panama Canal. On 26 September 2012, the Nicaraguan Government and the newly formed Hong Kong Nicaragua Canal Development Group (HKND) signed a memorandum of understanding that committed HKND to financing and building the "Nicaraguan Canal and Development Project".

2013

The United States abandoned plans to construct a waterway in Nicaragua in the early 20th century after it purchased the French interests in the Panama Canal. In June 2013, Nicaragua's National Assembly approved a bill to grant a 50-year concession to finance and manage the project to the HK Nicaragua Canal Development Investment (HKND) headed by Wang Jing, a Chinese businessman.

In the 2020s, growth in global maritime trade is expected to cause congestion and delays in transit through the Panama Canal without a complementary route through the isthmus, and by 2030, the volume of trade that a Nicaragua Canal could serve would have grown by 240%. On 10 June 2013, The Associated Press reported that the National Assembly's Infrastructure Committee voted nearly unanimously in favor of the project, with four members abstaining.

Despite HKND abandoning its attempt to construct the canal, the Nicaragua government indicated that it will go ahead with the vast land expropriations () under land expropriation Canal Law 840 enacted in 2013, which includes a concession for carrying out seven sub-projects, among them ports, oil pipelines, free-trade zones, and developing tourist areas that could be realized in any part of the national territory.

Following financial difficulties, HKND finally closed its offices in April 2018, leaving no forwarding address or telephone numbers to be reached. Absent a 60% vote to revoke the legislation, HKND maintains the legal concessions established by the 2013 law, including for other infrastructures projects in Nicaragua, including ports, roads, railway and an airport. == Description == The construction company provided a project description for review on open source, dated December 2014.

2014

Construction was to begin on 29 December 2014, and officially started a week earlier.

In November 2015, HKND announced that there would be a delay in the construction of locks and excavations until late 2016 in order to fine-tune the design. The Nicaragua canal project saw business rivalry greatly intensify in late 2014.

Thus, according to an activist leader, an unrest in Rivas in December 2014, in opposition to the canal, left two protesters dead, although no evidence was ever produced to justify his claim.

Following financial difficulties, HKND finally closed its offices in April 2018, leaving no forwarding address or telephone numbers to be reached. Absent a 60% vote to revoke the legislation, HKND maintains the legal concessions established by the 2013 law, including for other infrastructures projects in Nicaragua, including ports, roads, railway and an airport. == Description == The construction company provided a project description for review on open source, dated December 2014.

No "major works" such as dredging were planned to take place until after a Pacific Ocean wharf was built. The apparent lack of experience of Wang and his HKND Group in large-scale engineering was cited as a risk. On December 22, 2014, Wang announced construction started in Rivas, Nicaragua.

The early construction phase, started in December 2014, lasted through September 2015; it secured access to construction sites, but it did not provide the critical infrastructure nor mobilized the workforce.

An IPO was reported to be in preparation by the end of 2014.

XCMG, a state-owned Chinese construction company would have provided machinery and take 1.5% to 3% of HKND shares in return. By the end of 2014, no major investors had been named.

In addition, Wang has had a string of setbacks for projects around the world since 2014.

Environmental studies had not been released by HKND when the project officially started in December 2014.

2015

The concession could have been extended for another 50 years once the waterway was operational. In 2015, media reports suggested the project would be delayed and possibly cancelled because Wang's personal wealth declined greatly as a result of the 2015–16 Chinese stock market crash.

In November 2015, HKND announced that there would be a delay in the construction of locks and excavations until late 2016 in order to fine-tune the design. The Nicaragua canal project saw business rivalry greatly intensify in late 2014.

National opinion polls show that support for the project is about 70%. === Reported end to the canal project === Investor Wang had financial setbacks unrelated to the Nicaragua project, losing 80% of his net worth during the 2015–16 Chinese stock market turbulence.

According to HKND's announced plans in 2015, the project entailed the canal's development and building, and a supporting infrastructure.

The early construction phase, started in December 2014, lasted through September 2015; it secured access to construction sites, but it did not provide the critical infrastructure nor mobilized the workforce.

During the construction phase from September 2015 to March 2020, the canal would have been dug and the locks built along with accompanying infrastructure.

Domestic workers work two weeks and get one week off, while foreign workers are six weeks on and get two weeks off (management) or 22 weeks on, four weeks off (blue collar workers). On 2 September 2015, Pang Wai Kwok (executive VP of HKND Group) was interviewed by Nicaraguan journalist Carlos Solis and said up to 3,000 people might be employed on the canal project within the year.

Wang lost nearly 85% of his wealth during the 2015 Chinese stock market crash, according to the Bloomberg Billionaires Index.

2016

"Major works" such as dredging were to take place after the finishing of a Pacific Ocean wharf, whose construction was planned to start in late 2016.

Even with the Panama Canal expansion project, which began commercial operation to allow modern New Panamax vessels on 26 June 2016, some ships would be too big for the Panama Canal. On 26 September 2012, the Nicaraguan Government and the newly formed Hong Kong Nicaragua Canal Development Group (HKND) signed a memorandum of understanding that committed HKND to financing and building the "Nicaraguan Canal and Development Project".

In November 2015, HKND announced that there would be a delay in the construction of locks and excavations until late 2016 in order to fine-tune the design. The Nicaragua canal project saw business rivalry greatly intensify in late 2014.

2017

The HKND Group stated that financing would come from debt and equity sales and a potential initial public offering (IPO). By May 2017, no concrete action had been reportedly taken constructing the canal and further doubts were expressed about its financing.

In March 2017, the Havana Times reported that the public relations agency handling Wang's interests in Nicaragua had been let go, in absence of any developments on the project to report, and Wang had not been in the country in more than two years.

2018

In February 2018, analysts widely viewed the project as defunct, though the head of the project insisted work was on-going and HKND retained the legal rights to the concession for the canal as well as side projects.

If the PRC steps in, then it is a big possibility." Following financial difficulties, HKND finally closed its headquarters offices in China in April 2018, leaving no forwarding address or telephone numbers to be reached.

Following financial difficulties, HKND finally closed its offices in April 2018, leaving no forwarding address or telephone numbers to be reached. Absent a 60% vote to revoke the legislation, HKND maintains the legal concessions established by the 2013 law, including for other infrastructures projects in Nicaragua, including ports, roads, railway and an airport. == Description == The construction company provided a project description for review on open source, dated December 2014.

2019

Activists noted that the canal contract established that it must be dissolved in 72 months, if the investor has not obtained the money to start the project; that deadline was 14 June 2019, so they assert that the Law 840 must be repealed. === Opposition === Protests against the canal's construction occurred shortly after the official ceremony marking its beginning.

2020

In the 2020s, growth in global maritime trade is expected to cause congestion and delays in transit through the Panama Canal without a complementary route through the isthmus, and by 2030, the volume of trade that a Nicaragua Canal could serve would have grown by 240%. On 10 June 2013, The Associated Press reported that the National Assembly's Infrastructure Committee voted nearly unanimously in favor of the project, with four members abstaining.

HKND plans to construct a private gravel maintenance road on both sides of the canal. The estimate for the workforce in 2020 was 3,700 people, and 12,700 in 2050 when traffic had increased. Transit time would have been about 30 hours.

It was projected that by 2020 3,576 ships would have transited the canal annually.

During the construction phase from September 2015 to March 2020, the canal would have been dug and the locks built along with accompanying infrastructure.

The commissioning phase projected from April 2020 to June 2020 included lock testing and lock and tug boat operator training. HKND described the project as the largest civil earth-moving operation in history.




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Page generated on 2021-08-05