Nicaragua’s planned $50 billion canal project is “fraught with risks and uncertainties,” according to an environmental study and reported by Reuters news service.
The 172-mile (278 km), Chinese-backed project to rival the Panama Canal has been met with disbelief. The study urged Nicaragua’s government to verify project builder and operator, Hong Kong-based HK Nicaragua Canal Development Investment Co Ltd (HKND Group), complies with international standards before construction begins.
The report by Environmental Resources Management said the canal was likely to have an overall positive impact on Nicaragua, the second-poorest country in Latin America, but only if it follows international standards, such as protecting biological reserves and assessing possible hazards from earthquakes, Reuters reported.
HKND plans to start excavation early next year.