Nicaraguan canal delegation optimistic after visiting HKND in China
A delegation of Nicaraguan companies and the country's investment promotion agency ProNicaragua is optimistic about the viability of the proposed US$40bn interoceanic canal following a visit to China to meet with the project's concessionaire HKND, according to a release from the government.
The delegation met with HKND CEO Wang Jing to discuss progress which is "more advanced than expected," according to the release.
"They have progressed very quickly with the feasibility studies and, more importantly, Wang Jing is committed" to the project, said César Zamora, part of the Nicaraguan delegation.
In June, HKND was awarded the right to develop and operate a US$40bn interoceanic canal and any other infrastructure included in the project under a completely tax-free regime.
HKND has since hired international advisors to work on the feasibility studies that are expected to wrap next year, after which construction will start in December 2014 and conclude in 2019.
The project is not without its critics.
In August, opposition lawmakers that form part of the Nicaraguan democratic caucus (BDN) filed a legal challenge to the interoceanic concession law, claiming that it threatens national sovereignty.
The Costa Rican government recently called on the UN to halt construction.
Analysts have also questioned the Chinese government's role in the project, suggesting the project is aimed at hedging Taiwanese influence in Nicaragua in the absence of official Chinese-Nicaraguan diplomatic relations.
However, in a recent interview with the South China Morning Post, Wang denied any government involvement in the project.
"This is an independent project by our company, HKND. It is a strictly commercial project. There was no order from the Chinese government, nor were any instructions given or demands made. Looking back, if you ask me whether the Chinese government knew about the project, then I'd say the canal is no secret," said Wang.
In December, HKND plans to announce the investments it has secured for the project so far, added Wang.
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