On November 5, 2015, the Government of Nicaragua announced its approval of the Environmental and Social Impact Assessment (ESIA) for the Nicaragua Interoceanic Grand Canal Project and issued the “Environmental Permit” for the project. This marks a major milestone in the history of the Nicaragua Grand Canal. The construction of the Canal will bring huge benefits to Nicaraguan people as well as meeting the need of international maritime industry for a more economic interoceanic route that can handle the largest ships now being built.
Telemaco Talavera, the spokesman of the Canal Commission emphasized that the ESIA, carried out by HKND consultancy company with the efforts of scientists from all over the world is very scientific and rigorous. After in-depth analysis, the Canal Commission finally approved this report. He states, “Today is a historical day for Nicaragua and will go down in history. This is a project that will bring significant economic, social and environmental benefits. It will not only benefit this generation of Nicaragua, but will also benefit future generations, even the whole world.”
After receiving the Permit, Wild stated that “the ESIA process has been exhaustive and we spent longer completing it than we original envisaged, because we listened to the input we received about the design and made various changes that have improved it. Our commitment has always been to prepare an ESIA that met and exceeded all of the Terms of Reference and fully satisfied International Best Practice. We are satisfied that it does all of those things and that we have produced an ESIA that the people of Nicaragua can have total confidence in. We’re really pleased that the project can now move forward with full speed and with the sincere support from many sectors of the country.”
Pang Kwok Wai, Executive Vice President of HKND Group, stated that obtaining the environmental permit is a major milestone in the development of the project, and also a crucial threshold in terms of International Best Practice compliance at the design phase. “Currently the canal project is poised for a new phase of development.”
The ESIA represents the culmination of hard work carried out by hundreds of world-class scientists and environmentalists over a period of more than two years. Not only does it reflect the knowledge of local Nicaraguan scientists, but it also incorporates input from communities along the canal route. It demonstrates a combined international effort in accordance with the principles of International Best Practice.
Work on the ESIA commenced in June 2013 when HKND engaged Environmental Resources Management (ERM), a British consultancy recognized as an international leader in environmental sustainability. ERM organized a team of world class experts to conduct extensive baseline field studies along a 10 km canal corridor and then to analyze the social and economic impact of the canal and determine the necessary mitigations and offsets to achieve a net positive impact, in accordance with accepted international best scientific practice.
The report, comprising of 14 volumes with 11,000 pages and 2.7 million words, covers a wide range of scientific disciplines including geology, soil, groundwater, surface water, air, noise, vibration, marine / freshwater and terrestrial ecosystems, as well as social resources, community health, cultural heritage, local economy and employment.
The ESIA report was received by the Government of Nicaragua at the end of May 2015. Over the 5 months since submission of the report, HKND, ERM and the Government have worked together to refine the canal proposals to minimize environmental and social impacts and to agree to a regime of mitigations and offsets, all strictly in accordance with International Best Practice. HKND has made significant design changes that have improved the project and is very satisfied with what has been achieved during this rigorous review process.
The baseline studies of the existing environment and ecosystems established clearly that the ecological environment in Nicaragua has been deteriorating in recent years. Native forests are being destroyed at an alarming speed as a result of slash-and-burn farming. Environmental experts agree that without meaningful action most of the existing forests in the southern half of the country will disappear within 10 to 15 years.
The baseline studies also highlighted that water quality of Lake Nicaragua is deteriorating due to human activities and forest is being lost around the Lake. One of the mitigation measures agreed to will involve HKND undertaking major reforestation in the canal watershed to prevent soil erosion and reduce sediment. At the same time, the design of the canal and the locks will ensure that the canal will not result in any net use of water from Lake Nicaragua and that there will be no impact on the Lake from ingress of salt water into the Lake. HKND is committed to ensuring that the water quality of the Lake will be improved as a consequence of the construction of the canal.
The route selected for the canal ensures that no more than 6,800 families (27,000 people) will be relocated due to the Canal Project. Among these, only 25 households are indigenous people living in the Rama-Kriol Territorial Government (GTRK) territory. HKND Group is committed to carrying out resettlement of the displaced people completely in compliance with International Best Practice, and has committed that all the relocated people will see improvements in their living standards, with better housing and social infrastructure than they have currently.
ERM has confirmed that with the agreed mitigations and offsets, the Canal Project will meet the standards of International Best Practice and will produce a net positive benefit. It found that “construction and operation of the Project in a manner consistent with international standards could offer the best future for Nicaragua” and “could provide environmental, social, and economic benefits to the people of Nicaragua”.
Experts have estimated that the project will directly or indirectly create up to 250,000 jobs during the construction phase. ERM confirmed in the ESIA report that the Canal will have positive social impacts on the country: “It is anticipated that construction and operation of a Canal de Nicaragua
would significantly benefit the Nicaraguan economy as a result of increased economic production, corporate diversity, and markets; more jobs, increased personal income and spending, improved skills and experience of workers as well as improved transport infrastructure.”
“Nicaragua only has to look as far as Panama”, a country of proximity and similar climate, natural habitat, and social context, “to see the benefits of an interoceanic canal, as Panama is the second wealthiest country in Latin America,” explained ERM in the ESIA report.
Source & Image Credit: HKND Group
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