The Nicaragua Canal Initiative is a proposed project to construct a 278 km proposed ship canal located in Nicaragua. It will join the Atlantic and Pacific Oceans and become a key pass for international maritime trade.

The concept of a canal runing through Nicaragua dates to the 16th Century. The construction of the canal has been considered by many governments of historical countries of the region, but no action was taken until the government of Daniel Ortega.


Japan agreed to back the project in exchange for discounted usage fees, which would spark cheaper shipping rates, and therefore more trade between East Asia and North America and Europe. As a side effect, the project has also increased bilateral trade between Japan and Nicaragua. The Franco-German Commonwealth agreed to pay the other half of the project, agreeing to donate and operate cutting edge construction technology, in exchange for the Franco-german military being allowed to construct a military base on Big Corn Island, with the intention of increasing its influence over Latin America and the Pacific Ocean.

In planning the summit, three locations were proposed: Guatemala City, Managua, and Hesperia City. After negotiations between the three parties, Managua was chosen. The meetings began on July 1, 2010. The international meeting between Japan, the Franco-German Commonwealth, and Nicaragua over the construction of a inter-ocean canal in Nicaragua, Central America is ongoing, as the different details are sorted out.

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