Nicaragua canal is unlikely to be built

Subject

Concerns are growing over the future of Nicaragua's canal project.

Significance

A Cid Gallup poll conducted in January and published in newspaper Confidencial showed that 34% of Nicaraguans believe their government's canal plans are 'pure propaganda'. Announced in June 2013 by President Daniel Ortega, the ambitious project aims to build a transoceanic canal across Nicaragua linking the Atlantic Ocean with the Pacific. Since 2013, only limited progress has been made and on November 25, it was announced that the project would be delayed by a year, prompting fresh questions over its viability.

Impacts

• Construction delays will be exacerbated by protests and financial difficulties.
• A long and problematic construction could see the Sandinista government shed public support.
• Should Nicaragua be left with a partially-built canal, the socioeconomic and environmental impact could be disastrous.