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.

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."

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.