NOS News•today, 08:54
Nicaragua’s parliament has revoked the permit of a Chinese investor to dig a canal through the country between the Atlantic and Pacific Oceans. Wang Jing had been given permission to build an alternative to the Panama Canal in 2012, but little work had been done since then.
A new connection would be worth the investment of 50 billion because the 110-year-old Panama Canal is too shallow and narrow for modern ships. In recent months, shipping had to be restricted because drought made the 81 kilometer long waterway less navigable.
The new project would be 287 kilometers long and, according to the Ortega government, would give Nicaragua an economic boost. Wang’s investment company would be allowed to operate the canal for 100 years.
Protest
Opponents fiercely protested the plans. They feared environmental damage and stood up for the population who were forced to move from the course of the canal. In 2019, three protest leaders were sentenced to more than 200 years in prison for allegedly plotting a coup.
In the end, very little work was done. The project was officially kicked off with a ceremony in 2014, but no digging on the canal ever took place. Only an access road was constructed.
In the intervening years, Wang encountered financial difficulties. The decline of the Chinese stock market caused his fortune to tumble from almost $7 billion in 2015 to less than a billion in 2019.
All in all, it was enough for Nicaragua to now pull the plug on the project. By the way, only Wang’s permit was revoked; the law that grants it permission is still valid, should a new lender come forward.
