Daniel Ortega, who holds the office of President of Nicaragua in defiance of Nicaragua's Constitution, is championing a mega-project; a canal across the eastern part of Nicaragua that would provide an alternative to the Panama Canal. The estimated cost is $40 billion.
My initial reaction, when I heard about this is, Nicaragua's GDP is only $10.5 billion, and no foreign investor would be foolish enough to put up this kind of money to finance it.
I was wrong. Chinese billionaire Wang Jing is putting up the money, through the HKND Group, based in Hong Kong, and registered in the Cayman Islands. Jing and other Chinese see this project as reducing the time (and thus the cost) required to ship oil from Venezuela to China, and Chinese goods to the eastern United States. The HKND Group has contracted the China Railway Construction Corporation (CRCC) to do a feasibility study. CRCC is owned by the Chinese government, and was responsible for part of the Three Gorges Dam project.
Why do I say that this is a bad idea? Although there are several possible routes across Nicaragua, all of them go through Lake Nicaragua, which is a large body of fresh water, and environmentally sensitive. Connecting Lake Nicaragua to two different oceans will not only introduce salt water to the lake; it will introduce exotic species. The canal would also introduce large container ships, which will inevitably spill oil, sewage, and other chemicals.