Nicaragua revokes Chinese interoceanic canal concession after nearly ten years of controversy

After nearly a decade of controversy, Nicaragua’s congress made a historic decision on Wednesday to cancel a highly disputed canal concession granted to a Chinese businessman. The project, which aimed to create an interoceanic canal linking Nicaragua’s Atlantic and Pacific coasts, faced fierce opposition from critics who argued it would harm the environment and displace rural communities.

Despite a symbolic groundbreaking ceremony in 2014, no actual work was ever initiated on the canal. Thousands of Nicaraguan farmers protested against the land seizures required for the project, leading to a crackdown by the government. In a shocking move, three farmers’ leaders were sentenced to prison terms totaling over 500 years for their involvement in the protests, with the charges including an alleged coup attempt against the government.

The proposed $50 billion, 172-mile canal was initially seen as a far-fetched idea but later became a serious concern for many. The project symbolized the arbitrary nature of President Daniel Ortega’s regime and sparked a debate between its potential economic benefits and environmental risks.

The canal concession was granted to a Hong Kong-based company owned by Chinese businessman Wang Jing. While Ortega’s government argued that the canal would boost the economy and create jobs, opponents raised concerns about its environmental impact and feasibility.

The cancellation of the controversial canal concession marks a significant turning point for Nicaragua, ending a chapter of uncertainty and division over a project that had deeply polarized the nation.