Excerpts from the Maritime Executive:
The Nicaragua Canal project, which has been plagued by environmental setbacks and delays, may have been dealt another blow.
According to reports, the Chinese stock market crash wiped out almost 90 percent of Hong Kong Nicaragua Canal Development Group’s Chairman and Chief Executive Officer, Wang Jing’s net worth. Wang was worth more than $10 billion prior to the crash, but has fallen to about $1.1 billion.
While it is still unclear what impact, if any, this will have on the construction of planned 173-mile canal, this development appears to cast further doubt. Especially considering HKND’s lack of transparency regarding its funding. Additionally, in December 2014, Wang had only identified about $200 million in funding.
“If the canal goes ahead, it will be because the Chinese government wants it to, and the financing will come from China’s various state firms,” said Arturo Cruz of the INCAE business school, an ex-Nicaraguan ambassador to the United States.