US breaks silence, expresses concern over Nicaragua Canal

The US Embassy in Nicaragua has said that it is concerned by a lack of information surrounding the planned $40bn, Chinese-developed canal that would join the Atlantic and Pacific oceans and rival the Panama Canal.

So far the official response of the US to the audacious and controversial plan has been muted but yesterday, two weeks after violence and arrests marred the official start of construction, the US mission in Managua said all relevant documents pertaining to the project should be made public.

The embassy also called for the voices of all stakeholders to be heard.

"The embassy is worried by the lack of information and transparency that has existed, and continues to exist, over many of the important aspects of this project," the statement said.

It urged disclosure of environmental impact studies, tenders and other details of the project.

In 2013 Hong Kong-based company HK Nicaragua Canal Development Investment Co Ltd (HKND Group) was given the concession to build and operate the canal and expropriate land as necessary.

Work on the 276-km canal officially began on 22 December, after which protesters drawn mainly from poor farmers living along the canal route blocked at least two roads in the country. They have said they do not want to move, and fear they will not be adequately compensated.

HKND Group is controlled by a little-known Chinese businessman, Wang Jing. He has so far declined to reveal who is financing the scheme, which the Nicaraguan government has said would cost at least $40bn.

Wang has denied rumours that the Chinese state is behind the project.