Environmental Study Highlights ‘Risks and Uncertainties’ of Nicaragua canal

MEXICO CITY, Sept 30 (Reuters) – Nicaragua’s deliberate $50 billion canal mission is “fraught with risks and uncertainties,” and will trigger extra hurt than good until the federal government and its Chinese builder fund a bunch of mitigation measures, an environmental consultancy mentioned.

The 172-mile (278 km), Chinese-backed mission to rival the Panama Canal is likely one of the world’s most formidable infrastructure schemes, but it surely has been met with widespread incredulity, particularly over its supply of funding and deliberate 2020 completion deadline.

The social and environmental affect research by the consultancy, Environmental Resources Management Ltd, echoed lots of the similar considerations. It urged Nicaragua’s authorities to confirm mission builder and operator, Hong Kong-based HK Nicaragua Canal Development Investment Co Ltd (HKND Group), complied with worldwide requirements earlier than building begins.

The research was commissioned by HKND. The firm is managed by Chinese telecom mogul Wang Jing, who has dodged questions on his monetary backers and far of his enterprise background.

If accomplished, the canal may give China a significant foothold in Central America, a area lengthy dominated by the United States, which accomplished the Panama Canal a century in the past.

Environmental Resources Management mentioned the canal was more likely to have an total optimistic affect on Nicaragua, the second-poorest nation in Latin America, however provided that it follows worldwide requirements, equivalent to defending organic reserves and assessing attainable hazards from earthquakes.

The report was significantly important of the mission’s deliberate five-year timeline, saying it might create “logistical, procurement and workforce challenges.”

HKND had deliberate to start out excavation this month however has pushed the beginning date to early subsequent yr, amid deliberate additional research.

The consultancy additionally mentioned HKND had not adopted transparency requirements, together with sharing data with about 30,000 individuals who might need to maneuver from their houses or lose their property or livelihood.

The research was delivered in June and launched to the general public on Tuesday.

The report mentioned the canal may assist Nicaragua shield nature reserves close to the deliberate route, as occurred within the space across the Panama Canal.

But the consultancy warned {that a} worst-case state of affairs, the place the mission is begun however not accomplished, may hurt whereas offering not one of the proposed financial advantages.

Without safe financing, a powerful enterprise case for the canal and measures to restrict the mission’s environmental affect, “Nicaragua may be worse off than doing nothing,” the report mentioned. (Reporting by Anna Yukhananov; Editing by Lisa Von Ahn)