Grand Canal of Nicaragua: Is There Funding?

Its promoters claim that the resources to build it are there, with no more details, but the announcement of the postponement of the start of the mega work following the huge losses suffered by Wang Jing in the chinese stock market, has only increased the doubts.

Wednesday, December 2, 2015

Doubts about the feasibility of this project have been present since it was first announced, but they now appear to be increasing given the contradictions arising from the information that the project spokespersons themselves have been giving out.

While Telemaco Talavera, from the Grand Interoceanic Canal commission, said "... the financing is assured and the postponement of the work is due to technical issues," the adviser to the concessionaire HKND, Bill Wild, told The Financial Times that now the environmental impact studies have been approved, "... multilateral lending institutions such as the International Monetary Fund can support the project." However, Talavera said that so far none of the entities has pledged its contribution to the project. "

Added to the current situation are the losses suffered by Jing Wang in the Chinese stock market, an element that does nothing to dispel the doubts about the future realization of the canal.

See article in The Financial Times: "Nicaragua's $50bn canal plan delayed".



More on this topic

Grand Canal of Nicaragua: Start of Works Postponed

November 2015

Arguing that they are improving the design of the waterway, the Chinese company HKND has announced that works will begin in late 2016.

Although December 2015 had initially been stated as the starting date of the primary works on the canal, such as excavation, the Chinese company has now announced that it will postpone these works until the end of 2016.

Bad News for Grand Canal of Nicaragua

October 2015

Wang Jing, the owner of the concession for the great work, may have lost 84% of his personal assets in recent stock market upheavals in China.

While there has never been complete certainty about the realization of the gigantic work which could radically change the development prospects of one of the poorest countries in the hemisphere, news of the serious economic losses suffered by its promoter Wang Jing, tip the balance of opinions on the Grand Canal to the negative side.

Start of Construction of the Grand Canal of Nicaragua Announced

November 2014

The Chinese government and the concessionaire HKND have announced that on December 22 work will begin on the project with the construction of secondary roads and ports.  

In the first part of the presentation given by the Chinese company to the government and businessmen, feasibility, environmental, and social studies, for the market and design work were presented.

Draft Project of the Grand Canal of Nicaragua

July 2014

Without revealing how it will be financed, HKND Group has presented a draft design which as well as the canal also includes deepwater ports, a free trade zone, a resort, an airport and an artificial lake.

Amid concerns about the lack of information regarding the source of funds to finance the mega project, the government of Nicaragua and HKND reported that the project, in addition to the construction of the canal, will include the construction of two deepwater ports, a free trade zone, a resort and an airport north of Rivas.

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