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MANAGUA, Nicaragua (AP) — A proposal to build a massive rival to the Panama Canal across the middle of Nicaragua was overwhelmingly backed by lawmakers Thursday, capping a lightning-fast approval process that has provoked deep skepticism among shipping experts and concern among environmentalists.
The National Assembly dominated by President Daniel Ortega's leftist Sandinista Front voted to grant a 50-year concession to study, then possibly build and run, a canal linking Nicaragua's Caribbean and Pacific coasts to a Chinese company whose only previous experience appears to be in telecommunications.
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Despite the global crisis, which affected international trade, the canal only saw small declines in traffic during fiscal year 2009. The total number of transits reached 14,342, which was a 2.4 percent fall from fiscal year 2008.Their combined tonnage fell by 3.3 percent to 299.1 PC/UMS (Panama Canal / Universal Metric System).
Toll revenues grew despite the fall because the ACP implemented new tariffs.
The 96-year old canal is undergoing a $5.2 billion expansion program that will allow bigger ships to transit the waterway, starting in 2014.
The project will:
Build two new locks, one each on the Atlantic and Pacific sides.
Each will have three chambers with water-saving basins.
Excavate new channels to the new locks.
Widen and deepen existing channels.
Raise Gatun Lake's maximum operating level.[1]
Critics of the project contend there are many environmental topics to be considered, such as the link between El Niño (ENSO) and global warming's threat to water supplies.