October 26, 2016

$50bn Nicaragua canal project postponed

The world’s biggest canal project – a $50bn interoceanic canal through Nicaragua – has been delayed, following an environmental report and a collapse in the fortunes of the Chinese businessman behind the company that planned to build it.

Environments concerns and Chinese stock market woes mean world’s biggest canal project will not begin for at least another year.

The Hong Kong Nicaragua Development (HKND) Group announced on Wednesday that it would be another year before the start of major works on the proposed rival to the Panama canal.

The company said the “design of the canal is being fine tuned”, in accordance with recommendations contained in an environmental impact assessment.

Preliminary operations on ports and access roads started 11 months ago. Since then the slow pace of work on the canal has been attributed to the wait for the environmental report. The report was approved earlier this month, but instead of ramping up work the company said in a statement: “The construction of locks and the big excavations will start toward the end of 2016.”

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