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Nicaragua and Panama Canal projects could be facing financial struggles

Nicaragua and Panama Canal projects could be facing financial struggles
Jensen Werley Dec 29, 2014 http://www.bizjournals.com/jacksonville/news/2014/12/29/nicaragua-and-pa...

Two of the world's largest canal projects, Nicaragua and Panama, are both lagging with financial struggles, according to the Journal of Commerce.

While work on the Nicaragua Canal began last week, there are still questions regarding funding of the project, which boasts a $50 billion price tag.

The company responsible for the Nicaragua waterway, Hong Kong Nicaragua Canal Development Co., has reportedly only secured $200 million in funding for the project.

Although the official groundbreaking took place, key feasibility studies were postponed until April and excavation work won't begin until the second half of next year.

Compared to its Nicaraguan counterpart, the renovations to the Panama Canal may look affordable, but still aren't cheap either: They'll cost about $5 billion.

That project also appears to have some issues. It is already over budget by about $1.6 billion. It is set to debut its third set of locks in early 2016. While work began in 2007, the project has been plagued by labor disputes and cost-overruns.