Nicaraguan President Daniel Ortega has made a controversial decision to reform Law 800, the Law of the Legal Regime of the Grand Interoceanic Canal of Nicaragua, and repeal Law 840, which granted a concession to Chinese billionaire Wang Jing for the construction of a mega-project. The National Assembly, dominated by Ortega’s loyalists, approved the reform with 91 votes in favor, transferring control of the project to the State.
The reform aims to “strengthen and update the national legal system,” according to an explanatory statement, with the goal of adapting to changing national and international environments. The new organization will see the Minister of Infrastructure Transportation, Oscar Mojica, as the president of the Grand Interoceanic Canal Authority of Nicaragua, with various other officials appointed to key roles within the organization.
Meanwhile, the whereabouts of Wang Jing remain a mystery, as Chinese media have reported that his company, Xinwei Group, declared bankruptcy last April. The company’s listing on the Shanghai Stock Exchange was suspended in 2021 due to irregular financial transactions, leaving behind a massive debt. Reports suggest that Wang Jing is living in the United States, far from the fallout of the failed canal project.
Law 840, which granted an exclusive concession to Wang Jing for 50 years, was highly controversial, opposed by the Peasant Movement and environmental defenders for its potential displacement of communities and environmental damage. The decision to revoke the concession marks a significant shift in the oversight of the project, now under the control of the Nicaraguan government.