The Parliament of Nicaragua, dominated by the ruling Sandinista Front, made significant changes to the regulations surrounding a controversial interoceanic canal project on Wednesday. The lawmakers reformed the 12-year-old project and repealed a law that had granted the construction and management rights to a Chinese businessman.
The repealed Law 840 had given Chinese group Hong Kong Nicaragua Canal Development Investment Co. Limited (HKND Group), owned by Wang Jing, the rights to plan, construct, and manage the canal for 50 years. The $50 billion project, announced in 2014 by the Nicaraguan government and Wang, never materialized despite the initial hype.
The reform proposed by President Daniel Ortega was unanimously approved in the National Assembly to update the national legal system. This move is aimed at adapting to the changing national and international environment, according to Vice President Raquel Dixon.
The ambitious project envisioned a canal of approximately 278 kilometers, surpassing the Panama Canal’s 80-kilometer length. However, the project faced backlash from environmental groups, leading to a case brought before the Inter-American Court of Human Rights in 2021. The court was urged to address concerns of indigenous and Creole communities whose rights were allegedly violated by the project.
Opponents of Law 840 celebrated its repeal, seeing it as a victory for indigenous, peasant, and civil society movements in Nicaragua. Environmental lawyer Mónica López Baltodano hailed the decision as a significant achievement in the fight against tyranny in the country.
The future of the interoceanic canal project now remains uncertain, with the focus shifting towards addressing the concerns of impacted communities and ensuring environmental protection in the region.