After nine years of controversy, Nicaragua's congress has finally canceled a canal concession granted to a Chinese businessman amid environmental concerns and opposition from rural communities. The proposed $50 billion project sparked widespread protests, leading to the imprisonment of farmer leaders and highlighting the repressive nature of President Daniel Ortega's regime.
After nearly a decade of delays and protests, Nicaragua's congress has finally canceled a controversial canal concession granted to a Chinese businessman. The proposed $50 billion canal, which was supposed to link Nicaragua's Atlantic and Pacific coasts, had faced widespread opposition due to environmental concerns and threats to rural communities.
Despite a symbolic groundbreaking in 2014, no work was ever done on the canal. Thousands of Nicaraguan farmers protested against land seizures meant to create a route for the government-backed project. In 2019, three farmers' leaders who participated in the protests were sentenced to prison for over 200 years, a sentence that was later capped at 30 years under Nicaraguan law.
The proposed 172-mile (278-kilometer) canal was widely viewed as a risky and environmentally damaging project that posed serious threats to Nicaragua's delicate ecosystem. Critics argued that it would displace thousands of families in the countryside and disrupt the livelihoods of local communities.
Ortega's government, however, claimed that the canal would create tens of thousands of jobs and stimulate the country's economy. The concession was granted to the Hong Kong-based company HK Nicaragua Canal Development Investment Co. Limited, owned by Chinese businessman Wang Jing.
Despite the government's assurances, detractors remained skeptical of the project's financial viability and its potential impact on the environment. They argued that the environmental risks outweighed any potential economic benefits.
The cancellation of the canal concession is a major setback for Ortega's government, which had pinned its hopes on the project as a potential economic engine. It also comes amid growing international pressure on Nicaragua over human rights abuses and the suppression of dissent.
The decision to cancel the concession was met with relief by environmental groups and human rights organizations. They hailed it as a victory for the rule of law and a step towards protecting Nicaragua's natural heritage.
The future of the proposed canal remains uncertain, but the cancellation of the concession has effectively put an end to the controversial project for the foreseeable future.
