Nicaragua Revokes Chinese Investor’s Permit for Canal Project: What Happens Next?

Nicaragua’s parliament has revoked a Chinese investor’s permit to dig a canal through the country between the Atlantic and Pacific Oceans. Wang Jing was given permission to build an alternative to the Panama Canal in 2012, but little work has been done since then.

A new link worth 50 billion is worth the investment because the 110-year-old Panama Canal is too shallow and too narrow for today’s ships. In recent months, shipping had to be limited because drought made the 81 kilometer long waterway less navigable.

The new project would be 287 kilometers long and, according to Ortega’s government, would give economic impetus to Nicaragua. Wang’s investment company would be allowed to operate the canal for 100 years.

Opponents strongly objected to the plans. They were afraid of environmental damage and stood up for the people who had to move from the course of the canal. In 2019, three accused 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 launched with a ceremony in 2014, but no work has ever been done on the canal. Only an entrance road was built.

In the intervening years, Wang faced financial difficulties. Due to the collapse of the Chinese stock market, his fortune fell from almost $ 7 billion in 2015 to less than a billion in 2019.

All in all, it was enough for Nicaragua to pull the plug on the project. In any case, only Wang’s license was revoked; the law that authorizes it remains valid, if a new borrower comes forward.