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Nicaragua Nods Yes – Canal Receives Final Approval

Article Summary:

Nicaragua’s National Assembly has approved by a large majority the law authorizing the nation to build a deep-water canal between the Caribbean and the Pacific. The project will take 10 years to complete at a cost of U.S. $30,000 million.

Photo Credit: El Mundo

Original Article Text From el Mundo via Google Translate:

Nicaragua’s Parliament Approved the Construction of canal

Nicaragua’s National Assembly on Tuesday approved by a large majority the law authorizing build a deep-water canal between the Caribbean and the Pacific, a work that will last about 10 years and cost U.S. $ 30,000 million .

The law, called “historic”, states that the channel will be a public-private joint venture, in which the State will hold 51% of shares and profits, and provide the remaining 49% to investors, who may be countries, international organizations or individuals or corporations.

The project, approved by 86 of the 88 deputies present in the plenary, with two abstentions, to allow the passage of large vessels between the Caribbean and the Pacific Nicaraguans and make the Greater Panama Canal.

The liberal opposition minority in Parliament, supported the initiative but expressed fears regarding the administration that the government headed by the Sandinista Daniel Ortega can give to the project.

“It seems unlikely to find partners willing to give 100% of the construction work and receive only 49% of the shares, “he said in full opposition Liberal MP Pedro Joaquin Chamorro, also chairman of the Committee on Tourism Parliament.

The Nicaraguan Executive reported last June that the work seeks to boost funding with Brazil, China, Russia and Venezuela .

For his part, Deputy Sandinista dissident Victor Hugo Tinoco, warned that the construction of the canal law does not allow any legislative control over the executive, which, in its discretion, may result in an “uncontrolled borrowing” in Nicaragua.

He added that the initiative also “threatening” the “main resource that Nicaragua, which is water.”

Most Sandinista official, defended the law and said that it is “a dream come true.”

Parliament Speaker, the Sandinista René Núñez, said that in Nicaragua has been discussed on the construction of a canal from the year 1833 , in the nineteenth century.

The government, which sent the initiative to Parliament on 5 June, said that studies six routes to build that infrastructure, including one that passes through the San Juan River of Nicaraguan sovereignty and border with Costa Rica.

Public Utility
For that reason, the Government of Costa Rica said that Nicaragua should ask his opinion about the future construction of the waterway, as it could affect Costa Rican rights.

The environmental affairs consultant Nicaraguan government, Jaime Incer said that Costa Rica has no binding opinion on the eventual construction of the canal, while accepting that it can make comments. Nicaragua has said further that this work will be “complementary” and not “competitive” with the Panama Canal .

Under the initiative, the Nicaraguan Canal would be partially built in 2019 , the year that would be able to capture 416 million metric tons, representing 3.9% of the global ocean freight.

In 2025, the Canal could receive 573 million metric tons, ie 4.5% of the global ocean freight.

Moreover, the construction of the canal area will be declared a “public utility” and the state will compensate the affected landowners in a period not exceeding 10 years, by agreement between the parties.

Link to Original Article:

From El Mundo

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