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Chapter II
Definitions
Art. 4 Definitions
For the purposes of this Law, here are the meanings of the terms:
a) Geographic Area: This will be described cartographically in
the project, specifying sources of surface and ground waters in
the project area and waters moving toward the East or flowing
into the Interoceanic Nicaragua Canal, including its reservoirs
and lakes.
Management of the geographic area and its natural resources
will be regulated particularly as stated in the regulations to be
enacted for such purpose.
b) Area of Influence: The geographic area in the land planning,
including the lands, forests, and waters described and delimited
in the project, in which only non-polluting-activities may be
developed. Such activities should be compatible with operations
in the Nicaragua Canal.
c) Authority of the Interoceanic Nicaragua Canal: This is an
entity or level representing the Nicaraguan Government or State,
and it is in charge of overseeing the conservation, maintenance,
improvement, and modernization of the Nicaragua Canal. This
entity is a body incorporated and organized under this Law, with
its own net assets and indefinite duration. This entity has full
capacity to acquire rights and make contracts, and it will be
responsible for promoting, coordinating, overseeing, regulating,
and governing all related matters in the geographic area for
construction and operations of the Nicaragua Canal.
d) The Interoceanic Nicaragua Canal, which in this Law may
also be called The Nicaragua Canal, will be built as an
interoceanic transit route or waterways for ships in different
sizes. This Canal includes waterways with docks, anchorages,
moorings, and approach waterways; lands and maritime waters,
lake and river waters, islands, the continental shelf, and maritime
space to be used by the Nicaragua Canal, including floodgates,
auxiliary dams, power-generation plants, dikes, and structures to
control waters and auxiliary vessel or related facilities for
operations in the Nicaragua Canal. This includes all those
activities and areas required to protect the environment in the
area of influenceof the Nicaragua Canaland all the economic
activities and related services provided in such economic zone
and the Canal.
e) Nicaragua Canal Company (Empresa Gran Nacional de el
Gran Canal de Nicaragua): It is a commercial Company
organized under national or international legal provisions in force,
with the necessary capacity to acquire rights and bind itself. This
may be called the Great Nicaraguan Company (Empresa Gran
Nacional de Nicaragua), which builds and operates The
Nicaragua Canal, having permits and under the regulation of the
Interoceanic Nicaragua Canal Authority.
f) Related Services: Ships or boats are provided with services for
navigation through the Nicaragua Canal. There is a safe transit,
safeguarding the marine environment and other operation-related
LA GACETA
Chapter III
Nicaragua Canal Authority
Art. 5. Incorporation, name, domicile, and duration. Thus,
create the Nicaragua Canal Authority, with legal capacity, its
own net assets, for indefinite duration, and with full capacity to
acquire rights and bind itself and enter into agreement; this
authority is organized in accordance with this Law, with
registered office in the city of Managua; and it may be set up
and have operations anywhere in the national territory.
The net assets of the Nicaragua Canal Authority will include all
the contributions received of the concession granted by the
Nicaraguan Government, including cooperation and donations.
To fulfill its duties, this Institution known as the Nicaragua Canal
Authority will enjoy functional, organic, financial, and
administrative autonomy, setting the standards for organization
and operations that will enable efficient promotion, supervision,
and financial management of the net assets of the Republic of
Nicaragua in the Nicaragua Canal Company, including related
activities and services in accordance with the constitutional laws
and rules in force.
Before the Nicaragua Canal Company is incorporated, the
Nicaragua Canal Authority originally will get funds from
donations or creditcharging pre-investment expenses. Such
Authority will negotiate with the Nicaragua Canal so that the
latter covers such expenses later. This will also apply for its
budget purposes while the Nicaragua Canal is under
construction. After this, a percentage fee will be set, it will come
from income on account of services to be provided. This will be
negotiated with the company in charge of canal operations.
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Art. 7. Appointment
The citizens, who on behalf of and representing the State of
Nicaragua play a role in the Management of the Nicaragua Canal
Authority, will be appointed by the President of the Republic.
Regarding the appointment of the Chairperson of the Nicaragua
Canal Authority, such appointment shall be ratified by the
National Legislative Assembly, before holding such position.
For the first time the Board of Directors in this entity will be
appointed for the period including the construction works,
provided that such construction takes less than ten years lasts.
LA GACETA
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Chapter IV Management
and Administration
Art. 10. Management
The Management of the Nicaragua Canal Authority will include
a Board of Directors made up of members and presided by a
President, as a Minister of State; the Vice-President will be the
Minister of the Environment and Natural Resources; the
Secretary will be the Minister of Finance; and three Directors
will be: The Delegate of the Presidency of the Republic in the
Commission for Development of Ro San Juan; the Presidential
Delegate for Foreign Trade Investment Promotion, and the
Secretary for the Atlantic Coast Development of the
Presidency of the Republic.
The first Board of Directors will be set up in accordance with
this Law, and it shall represent the stocks or shares of the
Nicaraguan Government in the Nicaragua Canal Company.
The Board of Directors of the Nicaragua Canal Authority will be
responsible for approving and promoting the representations of
the Authority in national or international partnerships or
corporations, which may be private, state-owned, or mixed
ones, in which the Authority, as a member or partner, is holding
stocks.
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LA GACETA
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VI Chapter
Government Permits, Design, Construction, and
Operations of the Interoceanic Nicaragua Canal
Chapter VII
Environmental
Management
Art. 20. Environmental Impact Study
Before starting the Nicaragua Canal Project, the Authority
created as stated in this Law must ensure an environmental
impact study, fulfilling the provisions and environmental
protection standards set forth in the applicable national laws
and international standards.
Care must be taken, particularly for the fulfillment of national
provisions and international agreements on traffic of hazardous
waste and toxic substances and the Agreement on Affairs of
Indigenous Peoples and Tribes in Independent Countries,
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LA GACETA
Chapter VIII
Property of the Route and Procedures for
Acquisitions of Private and Communal
areas
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Chapter IX
Security and Defense
Art. 38. Security
In the drawings or plans for construction and equipment, proper
facilities shall be included to fulfill the missions of the Nicaraguan
Army and the National Police. These facilities will include units,
port captain's office, docking stations, police stations, and others,
which will be defined together. These facilities or institutions will
have the necessary means for their operations.
Art. 39. Defense
The Nicaraguan Government, through the Nicaraguan Army, will
be exclusively responsible for the maritime protection, defense,
and security of the Nicaragua Canal, including physical facilities,
waterways, and maritime areas, as well as security when
navigating without interference.
The Nicaraguan Government, through the National Police,
ensures exclusively the internal public order, citizen security,
crime prevention and prosecution of criminals everywhere in the
Nicaragua Canal.
Art. 40. Protection and Surveillance (Security)
The Nicaragua Canal Authority is primarily responsible for
supplying whatever is needed to assure proper protection and
security in the facilities of the Nicaragua Canal, ensuring safe
navigation without interference. It will set rules for access at the
facilities in the canal, its waters and banks; it will point
restrictions in the use of lands and waters for operational or
administrative purposes; and on the whole, it will ensure security
of people, ships, and goods under its responsibility. Everything is
done in coordination with the countrys competent authorities.
Chapter X
Special Economic Zone
Art. 41. Special Economic Zone
Because of this international public service, the Nicaragua Canal
route and the neighboring zones to be determined, will be
considered economic zones and under special regulations, in
order to provide an expeditious transit service, without ships
delayed in the national territory and operations of the Nicaragua
Canal.
Art. 42. Exemptions
Ships, cargo, passengers, and crews going through the
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LA GACETA
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