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In its description, HKND says it will need more than 2,000 pieces of major construction equipment, four billion liters of diesel fuel, one billion liters of bunker fuel for the dredgers, 400,000 tons of explosives, and untold millions of tons of cement and steel. The company would have to import all of this stuff into Nicaragua and build entirely new ports and roads wide enough to fit the big equipment.

On that, Miranda was much more skeptical the canal could be built in five years for a cost of $50 billion.

The section of the proposed canal that stretches through Lake Nicaragua would pass by Ometepe Island, home to an active volcano, Concepción, that spews out ash every now and again.

Right now, ships that want to pass between the Pacific and the Atlantic use the Panama Canal, which is currently undergoing a major $5.25 billion expansion

The rationale behind the Nicaragua Canal, HKND insists, is that it will be able to accommodate the next generation of super-sized container ships that can hold nearly 23,000 containers at a time.

 One company that operates super-sized ships, Maersk, told CNBC that the canal was "not something we have a demand for, and we're not able, at this point, to tell whether we will use it."*

Jorge Huete-Pérez, a vice president of Nicaragua’s academy of sciences, told me that Lake Nicaragua is a national icon — a source of fisheries and tourism, but also a key freshwater reservoir for much of the nation.

Other biologists have pointed out that the canal’s route will slice through a variety of nature reserves that are homes to some 22 species vulnerable to extinction, from tapirs to jaguars to turtles.

One internal assessment obtained by Scientific American said that HKND’s process for acquiring land for preliminary access roads "did not meet international standards."

 The Sandinista government still promises that the project will create thousands of jobs and promote billions in investment, but skepticism is growing.

In June 2013, Nicaraguan officials approved a $50 billion (US) deal with a Hong Kong firm to oversee the construction of a 278-kilometer long canal. The HK Nicaragua Canal Development Investment Company’s proposed project would attempt to link the Pacific to the Caribbean, allowing the passage of container ships
too large for passage through the Panama Canal.

The Nicaraguan Constitution of 1987 recognizes the Indigenous cultures that reside on the land and their right to maintain their languages and cultures. Two additional laws, 28 and 445, grant autonomy and “the use, administration and management of traditional lands and their natural resources” to Indigenous people. Additionally, Nicaragua signed on to the UN Declaration on the Rights of Indigenous People in 2008 and ratified ILO Convention 169 in 2010, a legally bind- ing document guaranteeing prior consultation before such projects.

The government is reportedly anticipating that 7,000 homes may be expropriated to make way for the 278-kilometer canal. However, an independent report by the Centro Humboldt states that the impact will be much greater. The report found that 282 settlements and 24,100 homes were identified within the direct area of influence, estimating that the number of people anticipated to be directly affected by construction at over 119,000. The canal’s construction will not only bring the displacement of hundreds of thousands of people, but also irreversible environmental damage. The loss of Indigenous communities will be accompanied by the loss of some of Nicaragua’s most precious and rich resources: its ecologically diverse lands and waters.

Meanwhile, the social impact assessment conducted by the Nicaraguan government, if being conducted at all, has lacked any transparency. While quick to boast the economic impact of the canal, officials have blatantly disregarded the needs and fears of community members from coast to coast. A coalition of 11 groups including affected In- digenous communities and environmental and legal organiza- tions submitted a petition to the Inter-American Commission on Human Rights criticizing the rights violations inherent in the Canal Law.

At the time of the groundbreaking in December 2014, the Chinese government said it was not involved with the project. This and Mr. Wang’s recent setbacks — he has reportedly lost about 80 percent of his $10 billion fortune — make some experts say the deal is probably dead.

Some question whether the canal would even be commercially viable. Few supertankers and massive container ships now afloat will not be able to pass through the expanded Panama Canal set to open soon. And few ports are big enough to welcome those megaships. In the short term, some experts say, the combination of the Panama and Nicaragua canals would lead to overcapacity and price wars.

That aspect has prompted protests from farmers, some of which have turned violent. Experts say Mr. Wang will have to pay only the assessed value, or about 5 percent of the market value, for any lands he takes. But many farmers would not be entitled to even that. In a country that is short of adequate roads and government offices, many do not have formal title to the fields they have cultivated for generations.

But the plan is much broader than just a canal. Mr. Wang’s vision includes new airports, new ports on both ends of the canal, new lakes in the mountains to make sure the canal has enough water, and new islands in Lake Nicaragua to dispose of excavated sediment and rock. Advertisement Continue reading the main story A 1,100-page study of the project, conducted by the British consulting firm ERM and issued five months ago, reinforced the notion of how much is at stake. It recommended further studies in many areas before going forward and noted that a wide range of mitigation efforts would be needed, like reforestation and job training.Some see hope in those efforts. Jeffrey McCrary, an American fish biologist who lives in Nicaragua and worked on the study, supports the project, saying Mr. Wang’s company will have to provide money to clean up environmental damage already caused by deforestation, poor land management, crop fumigation and general dumping into Lake Nicaragua.

milo Lara, a member of the Nicaragua Canal Commission, a group appointed by the government to oversee the project, said many critics of the project were political opportunists. Mr. Lara said the canal plan had been adjusted to deal with problem issues, like potential earthquakes, tsunamis and environmental concerns. And people who might be displaced by it, he said, could be moved to small cities with new schools and services they never had before.

In the meantime, speculating about the canal has become a national pastime, though polls show that Nicaraguans grow less inclined to believe that it will be built.“We used to talk about it every day,” said Carlos Fernando Chamorro, the editor of Confidencial, an investigative magazine. “Now we only talk about it every two days.”Some still hope it will lift this country out of poverty.But in Brito and the nearby city of Rivas, those who expect to be displaced are angry. Teresa de Jesus Henriquez Delgado, 31, is one of the residents who used a stencil to paint “Go Away Chinese!” on the outside of her house. Advertisement Continue reading the main story “I will resist with all of my strength when the bulldozers come to tear down my house,” she said. “I will fight until I die. I have to for my children. They can’t take this land from my family.”

The Rama-Kriols hold a communal title not only to the nine settlements where community members live, but also to the 4,843-square-kilometer territory where they fish, hunt, and farm. If current construction plans for the canal go ahead, that territory will be severed in two.

The massive Nicaragua Canal planned by a secretive Chinese billionaire, Wang Jing, and managed by his company, the Hong Kong Nicaragua Development Group (HKND), will stretch from the Pacific coast, across Lake Nicaragua, to the Caribbean coast and is destined to wipe at least one Rama village off the map

. The Rama’s fishing grounds will no longer be safe in the path of 400-meter-long megaships approaching the canal.

Aside from the Rama, whose territory will likely be the most impacted, at least four other indigenous groups will face disruption if the canal proceeds. Nicaraguan law explicitly bars indigenous land from being bought or sold; that means the land will be rented, not expropriated, says Kautz. Yet, critics say that because this is not expressly stated in the concession law, the land is vulnerable to seizure.

The following day, McCray and her companions watched in dismay as the law was adopted. “We didn’t get a chance to say anything,” McCray remembers. “They didn’t respect us, they didn’t give us a chance to defend what we were claiming.”

According to both international and Nicaraguan law, indigenous people must give their “free, informed, and prior consent” to any project that will affect the community’s territory or way of life.

According to Manuel Coronel Kautz, the president of Nicaragua’s Canal Authority, the National Assembly had documents from the Rama-Kriol government giving permission for the canal to be constructed prior to the vote that granted the concession

McCray was nervous as she read her remarks in Spanish. She cited three articles in the concession law that explicitly give the Canal Commission the right to expropriate indigenous land, and then she accused the government of violating international norms in the way it conducted community consultations, perhaps most blatantly by paying villagers—many of whom are illiterate—to come to the meetings. (Those villagers, Acosta claims, were then pressured into signing documents that they could not understand.)

Acosta filed a legal challenge to the canal concession law on July 1, 2013, just weeks after it was approved. Like the 31 other legal challenges to the law—based on environmental factors, human rights, and national sovereignty—the Rama’s legal case was dismissed. The Supreme Court said the lawsuits were invalid because the law passed the National Assembly with a wide majority and because the major development project took precedence.

Acosta worries that the Rama will lose their territory—displaced by golf courses and beach resorts—even if the Nicaragua Canal is never built.

The case at the IACHR is probably the Rama’s best chance for meaningful international intervention, but it remains to be seen whether or not this glimmer of hope is enough to protect their territory and keep their culture alive.

Officials estimate that between 30,000 and 120,000 people will be displaced in total by the canal.

They say that the planned route will displace the entire communities of Bangkukuk Taik, Monkey Point and Wiringay, while most other local communities will be indirectly affected by canal support projects.

“They keep saying that we don’t need a legal advisor,” Allen Claire-Duncan, the leader of the Monkey Point Kriol community, told Mongabay. “Many people do not know how to read or write, and if the [government negotiators] come to the community they will speak in terms that the people don’t understand.

the Nicaraguan government must obtain consent from the nine community leaders as well as the 18 members of the Rama-Kriol Territorial Government (GTR-K) before construction can begin.

Community leaders are emphatic about their desire not to sign over their lands, but some leaders say they have been pressured into signing documents of an uncertain nature

But in May, government officials transferred 16 members of the GTR-K to Managua where they signed more papers. Shortly after the meeting, Nicaraguan state media reported that the indigenous territories had officially granted consent for the canal

Corporate and governmental secrecy have prompted concern from human rights organizations, environmental groups and the U.S. Embassy in Nicaragua.

Last week three Americans, working for the US Department of Homeland Security, were expelled from Nicaragua without explanation.

After more than a decade out of power Ortega was re-elected in 2006 and has tried to reintroduce socialist policies. He has also announced plans for a huge canal, to rival the Panama Canal, which would be funded by a Chinese consortium.

uled as an illiberal democracy, meaning that the constitution, laws, property rights, and free speech are curtailed whenever it suits the rulers.

First, he has signed a deal with a Caribbean-based Hong Kong company to dig a canal to rival the Panama Canal. It is unclear to what degree the Chinese government is party to the deal, but state-owned enterprises are involved. That means the government is involved, so of course we should expect Ortega and his cronies to benefit. Read the piece linked above for more details about the questions being raised over the dubious cost calculations ($40 billion? $50 billion? More?), impact on the environment, impact on private land ownership, and the forceful tactics of the authorities against citizens trying to get information about the project, or simply trying to protect their homes from intrusion by officials escorting Chinese researchers and contractors into their villages.

Ortega is once again trying to build up his military for no good reason.

If Ortega’s efforts to strengthen ties with Russia and China were simply about commerce and improving his economy, it would make sense. Poor countries regularly try to do such things.

He told the diplomat Friday that there was a need to work together in regional, hemispheric and international fora to ensure that the impediments to the development of small states would be addressed.

Ambassador Jaentschke said that Nicaragua, which is chair of SICA for the next six months, had declared itself a Caribbean country through a constitutional amendment last September.

The airport, essentially a 1,500-meter airstrip with a small customs building, was due to open more than a year ago, and hopes that other regional airlines like Taca and Nature Air would offer service to the island haven’t materialized.