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HK Nicaragua Canal Development Investment Co Ltd (HKND Group) chairman Wang Jing, whose company is heading the project for the construction and management of a canal passing through Lake Nicaragua, speaks during a discussion group with students from the National Engineering University in Managua, July 7, 2014. REUTERS/Oswaldo Rivas(reuters_tickers)
MANAGUA (Reuters) - A Nicaraguan committee approved a proposed route on Monday for a $40 billion (23.35 billion pound) shipping channel across the Central American country that would compete with the Panama Canal.
The committee of government officials, businessmen and academics approved a 172 mile (278 km) route from the mouth of the Brito river on the Pacific side to the Punto Gorda river on the Caribbean that was proposed by executives from the HK Nicaragua Canal Development Investment Co Ltd (HKND Group).
The Hong Kong-based HKND group, which is leading the project, is headed by Chinese lawyer Wang Jing, who also heads Chinese company Xinwei Telecom Enterprise Group.
The proposed canal would pass through Lake Nicaragua, Central America's largest lake, and will be between 230 metres and 520 metres (755 feet to 1,706 feet) wide and 27.6 metres (90 feet) deep, said HKND engineer Dong Yunsong.
The proposed route still faces environmental and social impact studies that could recommend some changes to the plan, but those studies should be finished later this year to allow work to begin by December, said committee member Telemaco Talavera.
Opponents of the plan are concerned about the canal's effect on Lake Nicaragua, an important fresh water source for the country, as well as the impact on poor communities.
The plan is to finish the canal in 2019 and begin operations in 2020, Talavera said.
The proposed channel would be more than three times longer than the 48-mile (77-km) Panama Canal, which took the United States a decade to build at the narrowest part of the Central American isthmus. It was completed in 1914.
(Reporting by Ivan Castro; Editing by Alan Raybould)