LatinNews Daily Report - 14 June 2013 |
Protests over Nicaragua’s Canal |
Development: On 13 June representatives from the political opposition, social movements and NGOs demonstrated outside Nicaragua’s national assembly against the bill granting the Hong-Kong head-quartered HKND Group a 50-year concession to build and operate an inter-oceanic canal (‘Gran Canal’). Significance: The demonstrations came after the bill (as expected) was ratified yesterday by the ruling Frente Sandinista Liberacion Nacional (FSLN, Sandinistas)-controlled 92-member national assembly. The Gran Canal is Nicaragua’s biggest ever development project, with an estimated cost of US$40bn spanning an area of 40,000km2, just under a third of total territory. Organisations like the Mesa Nicaragüense ante el Cambio Climático, which groups some 20 environmentalist lobbies cite the project’s lack of environmental feasibility studies as a major cause for concern; while others such as FSLN Deputy Brooklyn Rivera complain that those communities likely to be affected have not yet been consulted – which could be seen as a violation of the right to prior consultation as stipulated under International Labor Organization (ILO) Convention 169, which Nicaragua signed in 2010. José Adán Aguerri, the head of the main private sector lobby, Cosep, has warned that the lack of transparency also raises major doubts over private property rights which could impact the country’s short-term investment climate. Key points:
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