Nicaragua canal study contract signed

Two Dutch firms have  received a  $720,000 contract from Nicaragua’s government  to study the possibility of building a canal to rival Panama’s.

Since the mid-nineteenth century, the "Nicaragua Canal" has been considered a possibility to join the Pacific Ocean and Caribbean Sea,  and ir would not require locks, thus giving a faster and less expensive transit time. Some experts believe that increasing global navigation indicates that two channels in Central America will benefit the shipping industry, especially if the Nicaragua Canal can accommodate ships of deep draft.

Infrastructure companies DHV and Royal Haaskoning Ecorys said Monday they will complete their study in early 2013.

The government of Nicaragua estimates that construction would cost about $20 billion dollars and  is seeking international investors. South Korea has already expressed interest in the project.