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Nicaragua Congress approves ocean-to-ocean canal plan

14 June 2013 Last updated at 13:21 BST

The Nicaraguan Congress has approved a proposal to have a canal built linking the Pacific and the Atlantic Oceans.

A Hong Kong-based company has been granted a 50-year concession to build the waterway, which will rival the Panama Canal.

The $40bn (£25bn) plan has been criticised by environmentalists, who say cargo ships will create a permanent risk to Lake Nicaragua.

But President Daniel Ortega says the project will bring prosperity.

Denise Hammick reports.