NewsNicaragua cancels Chinese-backed canal project over fraud claims

Nicaragua cancels Chinese-backed canal project over fraud claims

The National Assembly of Nicaragua annulled the concession granted in 2013 for the construction and management of the interoceanic canal by the Hong Kong Nicaragua Canal Development Group, owned by Chinese investor Wang Jing.

Chinese investor stripped of the concession to build the Great Interoceanic Canal. The photo shows the leader of China, Xi Jinping.
Chinese investor stripped of the concession to build the Great Interoceanic Canal. The photo shows the leader of China, Xi Jinping.
Images source: © Getty Images | 2024 Christian Liewig - Corbis

5:29 AM EDT, May 9, 2024

This decision was based on allegations that Wang Jing was "a fraudster," supported by claims in the Nicaraguan newspaper "La Prensa." The same publication, referencing official Chinese sources that day, labeled the investor as a "swindler who has recently fallen out of favor."

The Grand Interoceanic Canal Project

When the contract was signed, Nicaraguan media had described Jing as "one of the richest Chinese investors."

The responsibility for implementing the grand interoceanic canal project, which would cost as much as two years of Nicaragua's GDP, was handed over by President Daniel Ortega and his wife, Vice President Rosario Murillo, to their son, Laureano Ortega Murillo.

The proposed canal aims to connect the Caribbean Sea with the Pacific Ocean, stretching 172 miles east to west through Nicaragua's southern region. Its width will vary, with some parts being between 755 and 1,706 feet wide.

The massive project, initially estimated to cost 50 billion dollars, promised employment for over 50,000 people over five years.

Environmental advocates have raised concerns that the canal's construction could significantly harm Lake Nicaragua, which the canal is set to traverse. They warn that passing large ships, including oil tankers, through the lake could lead to irreversible environmental damage.

© essanews.com
·

Downloading, reproduction, storage, or any other use of content available on this website—regardless of its nature and form of expression (in particular, but not limited to verbal, verbal-musical, musical, audiovisual, audio, textual, graphic, and the data and information contained therein, databases and the data contained therein) and its form (e.g., literary, journalistic, scientific, cartographic, computer programs, visual arts, photographic)—requires prior and explicit consent from Wirtualna Polska Media Spółka Akcyjna, headquartered in Warsaw, the owner of this website, regardless of the method of exploration and the technique used (manual or automated, including the use of machine learning or artificial intelligence programs). The above restriction does not apply solely to facilitate their search by internet search engines and uses within contractual relations or permitted use as specified by applicable law.Detailed information regarding this notice can be found  here.